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Onoken co.,ltd.
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Posiotioning and Features
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Onoken implements a unique strategy for territorial expansion while consolidation continues in the steel distribution industry
Consolidation as an opportunity for growth
   During the downturn, foreign dealers from China, Taiwan, and South Korea aggressively entered Japan's saturated iron and steel market with low-priced goods, promoting large-scale reorganization of the industry. Steelmakers have forged alliances that have split the steel industry into two groups, with Kawasaki Steel and NKK on the one side and Nippon Steel, Sumitomo Metals, and Kobe Steel on the other. Meanwhile in the steel distribution industry, steel divisions were spun off or integrated at general trading companies while several hundred domestic distributors went out of business or consolidated in the worsening market. This has simplified the industry structure. It is now a tough market where those dealers who rely on a straightforward business style of supplying the ordered goods to the clients can no longer survive. Onoken sees the tide of consolidation as an opportunity. While many dealers have suffered deteriorating service and loss of trust from the spate of consolidation and alliances, Onoken's ability to make proposals that seamlessly match customer demands is a great advantage.
Product Flow in the Steel Industry
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Onoken has established its own business style to exploit its advantage as an independent dealer.
Onoken's strength
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   Now that globalization has transformed the steel market, prices of iron and steel products are increasingly affected by demand and supply in the international market. In contrast to members of steel conglomerates that cannot escape the manufacturer's influence on pricing, Onoken's independent status enables it to follow a far more flexible pricing policy. Our independence also enables us to pass on diverse customer requests to a wide range of manufacturers. We have exploited this advantage to acquire 3,000 clients including fabricators, shipbuilders, construction companies, machinery manufacturers, and secondary goods makers. We have 2,000 domestic suppliers as well as an overseas network including Asian countries such as China, Taiwan and South Korea, and extending as far afield as Australia and Brazil. The flexibility to meet client needs through various channels with a range of products at reasonable prices is Onoken's great strength and provides a strategy to turn the storms of consolidation into opportunity.
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Onoken looks forward to further expansion on a financially solid base.
Import/export destinations of steel products
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   Since its founding in 1949, Onoken has followed a conservative borrowing policy. During the economic bubble, we restrained investments outside our core business and endeavored to strengthen our financial base. As a result, we have an equity ratio far exceeding 50% and annual per capita sales of more than 200 million yen, with higher profits than those of the major domestic steel distributors. It is this financial strength that enables Onoken to implement a flexible management strategy based on its independent status. Looking forward, we are aiming at a 40% share of iron and steel products in the Kyushu market as well as increased market share in western Japan and territorial expansion in the eastern Japan. We are also proactively cultivating new sales channels covering the East Asia region, based on the import network we have built up over thirty years.
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All contents copyright 2011.Onoken co.,ltd.
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