Investor Relations

Safety Systems Business

Shigeyuki Kawamura Senior Director
Head of Safety Systems Group

Business Vision

Applying the technology we have cultivated in the automotive safety components field, we aim to provide more people around the world with safety by developing new safety components that are compatible with evolving mobility technology.

Mid-term Business Strategy

We will expand our global business for inflators, micro gas generators, and squibs by globally strengthening our production systems, quality assurance systems and supply chains.

Business Profile

As Japan’s first manufacturer of industrial explosives, the safety systems business applies techniques that were gained over many years in relation to igniters, detonation and explosive combustion. In doing so, we have developed our own inflators, which are gas-generating devices for inflating airbags during car collision, micro gas generators, which are compact gas-generating devices used for retracting seat belts in the event of a collision, and squibs, which are used for igniting these devices. Currently, from our five production bases* in Japan, the Czech Republic, China, Mexico and Malaysia, we are expanding our business globally.

* Production Bases Japan: Himeji Plant
Czech Republic: Kayaku Safety Systems Europe a.s. (KSE) * The corporate name changed on June 1, 2018.
China: Kayaku Safety Systems (Huzhou) Co., Ltd. (KSH)
Mexico: Kayaku Safety Systems de Mexico, S.A. de C.V. (KSM)
Malaysia: Kayaku Safety Systems Malaysia Sdn. Bhd. (KMY)

Safety Systems Business

Mid- and Long-term Outlook for the Business

As symbolized by CASE*, the automotive industry is undergoing major changes. Although automobile sales have been sluggish this year due to the spread of the novel coronavirus, they are expected to continue rising over the medium to long term, especially in emerging countries. As automobiles continue to evolve, there are more and more applications for automotive safety components which use explosive technology, such as airbags, seatbelt pretensioners, hood pop-ups, and current interrupters.
 Pyrotechnic devices, exemplified by inflators and micro gas generators, are an area in which we expect continued growth, as they are being installed in an increasing number of locations in automotive safety components. The safety systems business continues to supply safe and reliable products by refining our technologies for the igniters (squibs) which, along with these pyrotechnic devices, are necessary for automotive safety components.
 We also intend to apply and build on our current automotive safety components to provide new safety devices which can be used in drones, which are a new type of mobility technology, as well as flying automobiles, which are likely to appear in the future. Adapting to the evolving mobility technology will allow us to contribute to the safety of people the world over, well into the future.

* CASE: An acronym consisting of “C” for Connected, “A” for Autonomous, “S” for Shared, and “E” for Electric.

Initiatives under Mid-term Business Plan “KAYAKU Next Stage

The impact of the novel coronavirus was to significantly slow automobile sales in the fiscal year ending March 2021, the second year of “KAYAKU Next Stage”.
 Meanwhile, in response to government directives, KSM and KMY temporarily suspended operations in order to curb the spread of the novel coronavirus, while the other facilities also suspended operations and made production adjustments to respond to changes in demand. It will likely be several years before automobile sales return to their original levels, and we expect competition to intensify further in the automotive and automotive components industries.
 Although this is an extremely challenging business environment, it is also a good time to strengthen our manufacturing power. Rather than simply streamlining production lines, we are reviewing all processes, from parts procurement to manufacturing, inspection, and delivery, to create more efficient manufacturing systems. We will continue making improvements to ensure that when demand rebounds, we can supply automotive safety components with a higher production efficiency than ever before.

Key Themes in Mid-term Business Plan

Theme Details of initiatives
Establishing safety and quality management systems
  • Promote safety enhancement activities and permeate quality awareness among all workers
Strengthening research and development
  • Promote the development of safe products that match evolving market demands
  • Promote development of safety devices for drones
Creating and providing intellectual added value
  • Establish Nippon Kayaku original pyrotechnics safety technology that combines Japanese and European know-how
  • Promote automation of production and inspection processes, improve global production technology and production know-how
Pursuing global management
  • Strengthen reporting, contacting, and consulting between factories, aim for global uniform management
  • Select and train global personnel in Japan and from overseas to foster the development of the next generation of leadership
Strengthening the business through internal and external partnerships
  • Strengthen global supply base
  • Promote development based on external collaboration and strengthen alliances
Building a strong business base capable of supporting growth
  • Engage in timely capital expenditures that respond to demand
  • Create a master plan for each site to promote business expansion

Product introduction

We deliver automobile safety components incorporated into air bags, seat belt pretensioners and other safety devices worldwide with reliable quality.

Inflator

Inflators are devices used to instantly inflate airbags. Airbags are loaded with a gas generating agent, which applies explosive technologies to control the speed at which an airbag deploys at within 1/1000th of a second at the point of impact.

Micro Gas Generators

Micro gas generators are compact gas generating devices used for seatbelt pretensioners, which are devices to retract seat belts in the event of a collision, safely restraining passengers in place.

Squibs

A squib is an ignition device embedded in inflators and micro gas generators. It receives electric signals from impact sensors to operate safety devices.

Topics

Initiatives to address diversifying needs for automotive safety equipment

Demand for automotive safety components continues to diversify with the increasing number of parts used on each individual vehicle. For example, micro gas generators and squibs are used for pop-up engine hoods that enhance safety by lifting the hood of an automotive to provide cushioning in case a pedestrian is struck, from the standpoint of protecting pedestrians, and for devices that shut off the high voltage power current of increasingly popular electric vehicles supplied from batteries to prevent electric shock in case of a collision.
 Nippon Kayaku has begun selling its proprietary products for each of these applications, which are expected to see growth, in addition to the conventional areas of air bags and seatbelt pretensioners.

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