News Release


The President’s New Year Message for 2019

We very much appreciate all your support last year.

In 2018, there were many natural disasters in Japan. I would like to express my sincere condolences to the victims of Osaka earthquake, the Heavy Rain Event of July 2018, the 21st typhoon, and Hokkaido Eastern Iburi earthquake. I would also like to express my heartfelt sympathy to those who suffered the damage. 
To review the business environment surrounding our company in 2018, the Japanese economy grew steadily, supported by robust corporate earnings and employment and income environment, although there were some negative impacts of natural disasters in Japan. The overseas economy, mainly the U.S., continued to be on a trend toward recovery. However, concerns over the outlook of the global economy rose due to trade frictions between the U.S. and China. 
In the second year of our 5th three-year medium-term management plan “2020,” which was launched in June 2017, we are working together with all executives and all employees to build a foundation for growth and take various measures based on the two themes of “restructuring of corporate governance” and “growth of business.”

○ Restructuring of corporate governance 
Strengthening governance and thorough compliance are important issues that must be addressed by the entire Group, which could undermine the company’s foundations if neglected. 
We are thorough with the three fundamental corporate governance activities as below; 
1. Hokoku (report), renraku (communicate), and sodan (consult) 
2. Visualization of worksites 
3. Establishment of an open organization 
At the same time, we are working to revitalize our organization through such initiatives as the standardization of weekly and monthly reports, a system that enables everyone to understand issues from the same perspective, such as “walking management,” in which management members visit each site to exchange opinions with their staff members, and a business improvement project by middle management. At the same time, the entire Group is rebuilding its main systems, and we are working to establish an information infrastructure based on a close cooperative framework. We also intend to organize and examine the findings and issues that have come to light so far, and to further advance our efforts.

○ Growth of business 
Amid the rapidly changing environment surrounding our businesses, we are working to develop new products, including non-textile products, and aggressively expand overseas, centering on three themes of expanding its product lineups, strengthening globalization, and developing and selling more high value-added products. 
This year, we will continue to work toward business growth with the following five points in mind. 
1. Strengthening product development and sales in the growing industrial sector
2. Maintenance of proper quality at production sites and thorough implementation of 5S (Sorting, Setting-in-Order, Shining, Standardizing and Sustaining the Discipline) from the perspective of the worksite
3. Cost-making that outweighs competition in the marketplace
4. Pursuit of original models, including value-added methods and patents 
5. Responding to AI/IoT-induced changes

2019 is a year in which the Japanese economy is expected to grow steadily toward the 2020 Tokyo Olympics, as well as the decision to host the Osaka Expo in 2025, the first time in 55 years.

We will proceed with this phase of change by calmly ascertaining what will happen in the future and how it will change.

We would like to ask for your continued support for this year.

Ichizo Yoshikawa
Chairman and President
Suminoe Textile Co., Ltd.