Difficult times ahead for leading engine valve maker?

An Insight into the strategy and developments of Fuji Oozx

Affiliated with Daido Steel, Fuji Oozx is the second largest manufacturer of engine valves in Japan, with a market share of 31%. What makes Fuji Oozx interesting is its long-term relationship and capital tie-up with US automotive supplier TRW. The company’s overseas expansion strategy, thus ability to supply carmakers on a global basis, is based primarily on this relationship. After having posted a net loss five years ago, Fuji Oozx has done well to turn its financials around. Having completed its round of internal consolidation and cost-cutting, Fuji Oozx should be posting strong financials, yet the company’s performance is deteriorating. What are the main market forces affecting Fuji Oozx and how can it secure long-term growth?