Kitamura) SHIFT2030 began shortly after Chairperson Ishikiriyama assumed the presidency, at a time when our former Chairperson, Motonobu Nitta, had passed away and the initial stages of the COVID-19 pandemic were unfolding. At that time, I was head of the belt and rubber products department and fully occupied with our on-site response. Our belt and rubber products business was trusted as an essential supplier even overseas, so it was our mission to continue production without interruption. We did everything possible—using air and sea transport, among other means—to fulfill our supply responsibilities. Employee awareness of the necessity of our work was very high, and thanks to rigorous infection prevention measures implemented at the production sites, we were able to continue operations safely.
This experience brought about a change in mindset among our employees, fostering flexible thinking and new initiatives. As a result, our performance did not suffer a significant decline and it became an opportunity to reaffirm the underlying strength of our organization.

Ishikiriyama) The frontline teams, including the belt and rubber products department, responded with resilience and ingenuity under extremely difficult conditions. Amid the global impact of the pandemic, I was prepared for a decline in results. I knew there was no point in being overly nervous because I knew our frontline employees would give their utmost effort. Even with then-General Manager Kitamura, we did not hold any special meetings just because of the pandemic. Our strength lies in diversification and globalization, with risks mitigated across dispersed businesses and markets. It was my belief that if each department responded to its circumstances and worked with full effort to achieve the best results locally, good outcomes would naturally follow.

Kitamura) If something irregular occurred, we reported it as needed, but otherwise the frontline was trusted to manage. However, they were struggling to manage the constant inflow of orders. Disruptions in logistics caused delays in product deliveries, leading to customer anxiety and, in turn, excessive ordering. Although using air and sea transport incurred substantial costs, we prioritized fulfilling our supply responsibilities above all else. The departments made sure to share information closely regarding order handling and infection prevention measures, striving to meet customer expectations.
As department head, I saw that our employees have a strong sense of responsibility and are very earnest. When faced with an issue, they would quickly gather and exchange opinions without regard to hierarchy. Everyone looked in the same direction and advanced together. Especially during the pandemic, I found the sight of our employees working this way very reassuring.

Ishikiriyama) That is exactly what I find most admirable about our Company. Our steady commitment to meeting customer expectations and our cooperative approach among employees demonstrate how the founding philosophy of invention, harmony, and innovation has permeated the entire Company. As I understand it, this philosophy was codified by later generations of employees. It is a truth they themselves grasped, so it is understood and internalized in their own words. Building good relationships together and working cooperatively is at the heart of harmony, and that naturally equips us to foster good relationships with all stakeholders.

Ishikiriyama) Exactly. New technologies and businesses are what shape the Company’s future. In SHIFT2030, strengthening existing businesses and exploring new ones are the twin pillars. Investing the capital and human resources cultivated through existing businesses into new fields represents the most suitable growth model for our Company. M&A is one such measure. For example, Nitta Chemical Industrial Products, which became a subsidiary in December 2017 through share acquisition, has advanced structural reforms through selection and concentration, achieving sales of 13 billion yen. In the air conditioning products business, consolidation of sales companies and strengthening of the Taiwanese market have contributed to establishing a profitable structure. Development of the Indian market and decontamination market also promise future growth. The hose and tube products business is also beginning to show results with strategies focusing on construction machinery and semiconductors. Each existing business produced results in Phase 1 of SHIFT2030, but we must not let these achievements be temporary. In Phase 2, we would like you, as President, to continue taking the helm as one of the key priorities and to lead us to significant achievements.

Kitamura) In addition to achieving numerical targets in Phase 1, we also advanced the review of product portfolios in each business department. Building on this foundation in Phase 2, we will take on further growth.

Ishikiriyama) New businesses are important not only for sales, but also for expanding the Company’s potential and raising expectations for growth. Last fiscal year, we launched a new business producing and selling maple syrup from wild-growing maples, utilizing Hokkaido’s forest resources. This initiative, proposed by the New Business Exploration Team, has also brought about a shift in mindset that with the right plan, we can take on anything. Since this was in the food sector, not part of our core businesses, there was internal debate. There were suggestions that we could simply launch the maple syrup business at our existing sites such as the Hokkaido Enterprising Development Office or the Nitta Ranch. However, to encourage flexible thinking and the proposal of new initiatives, we decided to launch it separately as a venture company, Wakutto Nitta. Wakutto Nitta is a venture that symbolizes a corporate culture where anyone can take on challenges with creative ideas, which will also serve as a strength in recruitment. We are placing our hopes on Wakutto Nitta not for its sales, but for its role in stimulating existing businesses with free and creative ideas.