2022 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 the Group’s 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 main accomplishments in 2021. It was a year full of changes around the world. The global economy finally started picking up as the vaccine rollout progressed in many countries, but we also witnessed steep rises in raw material and energy prices, transportation bottlenecks, and new strains of COVID-19.

Against that backdrop, we launched our Vision 2030 and a new mid-term management plan. Furthermore, the following five objectives, which we set at the beginning of fiscal 2021, were largely accomplished.

1. Workplaces continued to operate safe and flexibly while ensuring full compliance

   Last year, we continued to carry out measures to prevent the spread of COVID-19 infections, and initiated various new activities, such as vaccinating employees in our workplaces. We were able to continue operate throughout the pandemic, thereby reducing its impact for our customers. Most countries where we operate were greatly disrupted by the pandemic, but many of the Group’s production plants, such as its casting and forging plant in Vietnam, remained open thanks to the tireless efforts of employees.

2. Many goals of our structural reforms were achieved

   Despite the ongoing pandemic, we continued to carry out structural reforms designed to boost productivity and raise quality with the aim to get earnings back on track. As a result, record-high levels of production output and profits were achieved by numerous production plants. For example, annual output reached 320,000 tons at Rayong Works in Thailand. In Japan, measures to concentrate production plants were successfully executed thanks to the cooperation of everyone involved. I would like to take this opportunity to express my appreciation to all employees for their contributions to the structural reforms.

3. The new mid-term management plan made progress and targets were achieved

   In Japan, Fukui Works optimized its production system with a newly installed automotive body sheet finishing line. In the United States, UACJ Automotive Whitehall Industries established a new production facility to manufacture aluminum parts for electric vehicles. In China, we brought a new factory on line in Guangdong to manufacture battery foil. Through all of these initiatives, the Group continued to meet demand from growth markets. Meanwhile, we set up the Climate Change Countermeasures Steering Committee to lead our response to climate change, and it began considering and launching related initiatives. To maintain an awareness of our commitment to the UN Sustainable Development Goals (SDGs), we produced and distributed original SDG-themed badges to employees of all group companies.

4. Employee engagement was improved

   The Group’s workplaces further integrated telecommuting and other flexible work arrangements into their work practices, and production plants initiated many new innovative systems, such as remote inspections. In addition, we more widely promoted our corporate philosophy, which was revised in early 2020, and increased opportunities for related discussions at group companies last year.

5. Training programs were expanded and the Group’s management systems improved

   All divisions began integrating risk management policies into their operations, and all employees were made aware of risk management in their job duties.

These accomplishments were made possible by the dedicated efforts of employees who thought about how to contribute in their respective jobs and took action. They acted despite the pandemic, which limited various activities and made the future unpredictable. Once again, I would like to thank everyone for their hard work.

While continuing to carry out last year’s initiatives, we have set the following four major policies to pursue in 2022. As a basis for these activities, we will keep placing the highest priority on ensuring safety and compliance, which are fundamental components of the Group’s management.

1. Complete the structural reforms

   Fiscal 2022 is the final year of the structural reforms we started in 2019. We must complete the measures initiated earlier on along with more recent initiatives in order to achieve the final goals of the reforms.

2. Work towards the success of the new mid-term management plan

   We are now beginning the second year of our mid-term management plan. To achieve our financial and non-financial goals and make progress towards our Vision 2030, we will need to cultivate growth markets and industries, have upstream and downstream businesses work together to add more value to materials, and improve platforms for technical development and digital technology applications.

3. Step up our response to climate change

   To “enhance prosperity and sustainability,” as stated in Our Purpose, the entire UACJ Group must accelerate its contributions to a healthier environment by expanding recycling activities and other initiatives.

4. Continue expanding training programs and improving the Group’s management systems

   Human resource development is integral to advanced manufacturing. From that standpoint, we must continue to expand training programs and improve our management systems, including risk management. This year, especially, we will step up efforts to promote respect for human rights and diversity, and foster dynamic workplaces that fully embrace the values stated in the UACJ Way.

In the spirit of mutual respect and understanding, all members of the Group have been working together to carry out the structural reforms. As a result, profitability greatly improved in fiscal 2021, and we are now forecasting a return to the black. I would like everyone to remain committed to advanced manufacturing and a forward-looking and sustainable UACJ Group. I also ask you to be inquisitive about new developments and take on challenges in your work. Like a baseball team, we each have our own positions and responsibilities, and we can succeed by working alongside each other towards common goals.

Once again, I would like to wish a happy New Year to all members of the UACJ Group and our stakeholders around the world. I sincerely hope that you and your families stay safe and healthy in 2022.

Miyuki Ishihara
Representative Director & President
UACJ Corporation