2021 New Year’s Message

On behalf of UACJ’s management, it is my pleasure to wish each member and stakeholder of the UACJ Group a safe and happy New Year. I would also like to express my appreciation to those employees who spent time at work during the holidays.

On the occasion of the New Year, I would like to look back on the Group’s major accomplishments in 2020.

1. Workplaces continued to operate safely while complying with COVID-19 containment measures

   The Group’s businesses and operations were seriously affected by the global spread of COVID-19 last year. Nevertheless, we were able to overcome those difficulties and continue supplying products that are essential for society. That was because all employees worked together as a team to keep our workplaces operating while giving top priority to safety. With everyone’s cooperation, we laid the groundwork for a business continuity management system in consideration of the spread of infections, and made necessary changes to ensure operations continued during the pandemic, such as staggering work hours and facilitating telecommuting. At the same time, all group companies promptly complied with government instructions in the countries in which they operate, and also offered assistance to people in their communities. For example, UACJ donated face shields made with copper film and desk partitions fitted with aluminum components to local governments and hospitals in Japan.

2. Structural reforms made steady progress

   In 2020, every measure of our structural reforms largely progressed according to plan. It was a memorable year, as Tri-Arrows Aluminum began operating a new cold rolling mill, UACJ (Thailand) reached its highest-ever production output, and Fukui Works started up a new automotive body sheet finishing line. As a result, despite the ongoing COVID-19 pandemic, the Group’s flat rolled products business expanded the production capacity of its global manufacturing network based in the United States, Thailand, and Japan.

3. Our corporate philosophy was redefined and promoted

   Last year we redefined our Group philosophy, held discussions about it with employees, and initiated steps to promote it group-wide. Employees from many workplaces were able to hold meetings through videoconferencing amid COVID-19 restrictions. In addition, progress was made in human resources and organizational development. For example, we launched a training program called U-KI in various countries as part of our initiative to remake the Group’s corporate culture. In another training program called Monozukuri Gakuen, employees from each business and various workplaces refined their individual skills. This program will be expanded to subsidiaries outside Japan in the future.

4. Management focused more on ESG

   In an effort to incorporate environmental, social and governance (ESG) considerations in our management, we began examining how to set up an organization for promoting sustainability and have it carry out related initiatives through to 2030.

5. Risk management practices were improved

   In 2020, we took concrete steps to reduce the Group’s susceptibility to a wide range of risks going forward.

All of these activities carried out last year will continue in 2021 in line with our major policies, as follows.

1. Operate safe and flexible workplaces while ensuring full compliance

   Looking ahead, the Group must continue giving top priority to safety while taking steps to prevent serious accidents. Although the end of the COVID-19 pandemic is now in sight, new workplace practices such as telecommuting and videoconferencing are here to stay, so we will need to find ways to adjust to such working conditions while maintaining safety. As a manufacturer, the Group must also continue ensuring full compliance with all relevant laws and regulations as well as its own internal rules and customers’ requirements.

2. Achieve the goals of our structural reforms

   In 2021, we must steadily implement the measures designated in our structural reform plan. Guided by our corporate philosophy, I want all employees to work together as a team to push ahead with the reforms and help build up the Group’s earning power.

3. Put ESG management into practice

   We are now focusing on ESG considerations in our management. Accordingly, we intend to designate our own material sustainability issues in connection with the UN’s Sustainable Development Goals, and create performance indicators based on ESG criteria.

4. Improve working conditions for employees

   We want to enhance employee engagement by improving working conditions through various reforms, and make the workplace environment more people-friendly as we anticipate the end of the COVID-19 pandemic. Furthermore, as we promote our new corporate philosophy group-wide, managers will discuss their commitment to it in dialogues with employees with a view to have everyone put the philosophy into practice on an individual level.

5. Expand training programs and improve the Group’s management systems

   We plan to expand U-KI to a larger number of workplaces and offer Monozukuri Gakuen to a wider range of workplaces besides those in manufacturing and while raising the quality of both training programs. To do that, we have begun recruiting instructors internally. We also intend to establish a business continuity management system. Last year we formulated and adopted a business continuity plan, which includes a response to the pandemic, and this year we will begin implementing the plan in workplaces group-wide. In addition, we will examine ways to improve risk management and equip workplaces with the capabilities they need to effectively deal with risks in the future.

We expect the outlook for the Group’s operating environment to remain uncertain this year due to various factors, including the ongoing impact of the COVID-19 pandemic and trade friction between the United States and China. Based on how we respond to and handle that environment and the post-COVID economy, the real worth of UACJ may be called into question. Therefore, under our new corporate philosophy, I am asking every employee to play a part in ensuring the UACJ Group’s survival, and continue joining together as a team so that we can get through the challenges ahead. I look forward to working with all of you.

Once again, I would like to wish a happy New Year to all members of the UACJ Group and our partners around the world. I sincerely hope that you and your families stay safe and healthy in 2020.

Miyuki Ishihara
Representative Director & President
UACJ Corporation