Why did we invest in Nippon Oil Pump?
Founded 97 years ago, Nippon Oil Pump leads the Japanese market for the design, development and manufacture of trochoid pumps, water pumps, and hydraulic motors and has worldwide leadership positions in the trochoid pump segment. Its products are used principally to circulate oil in machine tools, for the purposes of lubrication and cooling. The group has strong competitive advantages, including:
- unique R&D and product innovation know-how, enabling NOP to meet the detailed specifications of machine tool manufacturers;
- a strong brand and customer confidence, illustrated by its leadership positions in Japan;
- a flexible industrial model, allowing NOP to provide quality customer service (e.g. short delivery periods);
- significant barriers to entry, due to the high penetration rate of NOP’s products in the installed fleet of machine tools in Japan and the lengthy procedures required to obtain referencing with customers.
The group’s development is based on markets offering significant long-term growth, such as the continued industrialization of emerging markets and the modernization of machine tool fleets to keep pace with constant innovation.
Wendel’s investment in NOP is its first direct investment in Japan since opening an office there in 2008. Although small, the size of this investment corresponds to Wendel’s strategy in Japan: build a reputation over time as a long-term investor with a three-century industrial heritage. NOP enjoys a solid business base underpinned by strong leadership positions in Japan and offers significant scope for international growth, which Wendel intends to support, in particular with the help of its teams at Wendel Japan.
Outlook for development
The group’s development is based on four main strategic pillars:
- ongoing product innovation, such as the development and launch of its new Vortex pump range enabling end users to achieve considerable savings in terms of space and maintenance costs;
- continued optimization of its operating structure to implement increasingly flexible and responsive manufacturing processes and to further improve customer service (shorter delivery periods);
- development of sales in nearby regions with high growth potential (Taiwan and India) and in Europe, where the group opened its first office in 2015;
- targeted acquisitions and partnerships to support the group’s business development.
The implementation of these strategic plans, combined with NOP’s recognized know-how in Japan and rigorous financial management, will enable the group to replicate its successful business model internationally, while consolidating its leadership positions in Japan.
Président non exécutif
Wendel's role in corporate governance
Board of Directors