Message from the Executive Officer in Charge of Sustainability

Executing an Aggressive Strategy to Shape the Future Based on a Track Record of Trust

The KITZ Group celebrated its 70th anniversary in 2021.
Since our founding, we have supported the stable supply of resources such as water and energy, supported various industrial activities, created environments enabling people to live with peace of mind, and helped maintain social sustainability.
We have accomplished this through the study of fluid control technologies and the development of materials to control fluids such as the water, air, oil, and gas that flow through piping. Our commitment to reliably and continually support these activities that are taken for granted around the world remains unchanged.

As a basis of our business activities in this rapidly changing and increasingly uncertain environment, we believe that charting and clearly communicating a path for medium to long-term growth through the creation of shared value that meets the needs of a new era is the first step in promoting sustainability transformation (SX) with a greater emphasis on social and corporate sustainability.

Rather than regarding social needs such as social contributions and environmental conservation as defensive strategies, we see them as offensive strategies that further expand opportunities for the KITZ Group’s activities to contribute and become catalysts for business growth. Realizing these strategies one by one is precisely what constitutes the creation of shared value that shapes the future.

Harnessing the Technological and Material Capabilities We Have Preserved and Honed, We Will Develop and Evolve Ourselves to Cultivate New Achievements.

As key challenges identified by back casting from the social issues of digitalization and decarbonization, the KITZ Group has set growth opportunities in eight target markets of the Valve Manufacturing Business based on the theme of “Digital & Green”. In addition to the pursuit of environmentally conscious manufacturing, material development, and manufacturing processes that contribute to a sustainable future through our business activities, we are using the technologies, materials, and achievements we have cultivated and nurtured to date as the basis for aspiring beyond new heights and building upon solid results. We see trends in digitalization as major growth opportunities even outside the conventional semiconductor equipment and materials markets, and similarly, we see trends in decarbonization as representing significant growth opportunities even outside the hydrogen and clean energy markets.

The water purification equipment we set up in areas affected by the Noto Peninsula Earthquake is a product designed for the Water Treatment market, one of the eight target markets we have identified. The Environmental Solutions Division began its activities in 2023 to develop group synergies in water treatment. One of its roles is to play a part in business continuity planning (BCP) by responding to water outages and addressing deteriorating raw water quality in times of disaster. In addition, the division proposes new roles for water supply infrastructure, particularly in depopulated areas, as the water supply infrastructure continues to age across Japan. The division also develops proposals that assist in regional revitalization by striking a balance between the need to conserve limited water resources in island areas and the acceptance of tourists from outside the islands.

An example embodying this concept is the use of the corporate version of the hometown tax system. Utilizing this system, we have delivered water purification equipment to Iheya Island (Okinawa Prefecture), the town of Nishikawa (Yamagata Prefecture), and Komatsu City (Ishikawa Prefecture). These efforts have given us the opportunity to help solve local issues in these areas. This technology that we have diligently perpetuated and cultivated is now beginning to chart a path for new forms of social contribution and business expansion alongside the changing times. It is a prime illustration of our sustainability slogan: Create the Future / Preserve the Future.

Building a Structure that Shapes New Flows While Leveraging the Unique Qualities of the KITZ Group

From a forecasting perspective, we also proactively invest in areas to be maintained and reinforced as core businesses based on KITZ’s strengths, namely “brand power backed up by quality and reliability due to integration production that starts with the materials,” “systems enabling the small lot production of large varieties,” and “solid foundations maintaining a well-balanced portfolio operating globally across many domains.”

In addition, we have defined human resources, governance, and information disclosures as priority challenges in the promotion of SX. On the human resources front, we emphasize improving job satisfaction and job comfort, and each year hold KITZ Group Engagement Forum sessions where the president travels to Group sites around the world to engage in direct dialogue with employees. We are also working to enhance a range of other initiatives.

In terms of governance, we have switched our corporate structure to a company with a nominating committee, etc. We aim to be more transparent and achieve swifter decision making than before. With regard to information disclosures, we plan to carefully disclose information according to trends in SX that meet investor expectations while also stepping up IR efforts to enhance the quality of information.

By promoting sustainability management in these ways, we will continue to support people’s lives, society, and industrial infrastructure while shaping New Flows of growth through the innovative creation of shared value. In doing so, we will make significant progress in realizing social and corporate sustainability through the further enhancement of corporate value.

Yutaka Ota
Executive Officer,
Division Manager, Corporate Planning Division