- NSK plans to double operating profitability levels by FY2028 through structural reforms and electrification-focused product expansion.
- The company will expand production capacity in North America and India while restructuring manufacturing operations in Japan and Europe.
On May 13, NSK announced a new medium-term management plan extending through fiscal year 2028, outlining strategies to improve profitability while strengthening its position in electrified vehicle technologies. The company plans to continue restructuring production facilities to reduce operational costs and improve manufacturing efficiency. At the same time, it intends to expand sales of products categorized as priority areas, particularly within the automotive and industrial machinery sectors. Through these initiatives, NSK aims to achieve an operating profit of JPY 75 billion and a return on equity (ROE) of 8% in the final fiscal year of the plan, representing nearly double the projected fiscal 2025 levels.
The newly announced strategy is aligned with the long-term NSK Vision 2036 framework, which was revealed simultaneously. According to the company, the FY2028 management roadmap does not incorporate the potential impact of the planned business integration with NTN, scheduled for October 2027. By excluding the integration effects from its current targets, NSK intends to maintain clear visibility over the performance improvements generated directly through its own restructuring and business expansion measures during the medium-term period.
Key Targets Under NSK Medium-Term Management Plan
The company outlined several financial and operational targets aimed at improving competitiveness and profitability across its global business operations. These targets focus on strengthening earnings performance while supporting future growth areas associated with electrified mobility and industrial applications.
| Target Area | FY2028 Goal |
|---|---|
| Operating Profit | JPY 75 Billion |
| Return on Equity (ROE) | 8% |
| Strategic Focus | Electrified Vehicle Components |
As part of its structural reform initiatives, the company will complete the restructuring of production facilities in Europe by the end of FY2026. These restructuring activities have been ongoing since the previous medium-term management plan and are intended to improve manufacturing efficiency and optimize operational costs. NSK also confirmed that additional restructuring measures will begin in Japan, including operational adjustments involving the Fujisawa Plant in Kanagawa Prefecture and the Otsu Plant in Shiga Prefecture.
Focus on Electrified Vehicle Product Expansion
NSK plans to strengthen its automotive business portfolio by increasing sales of products linked to electrification and advanced vehicle systems. The company identified several priority products that are expected to support future demand growth in the automotive sector. These include hub unit bearings designed for heavy-duty vehicles, electro corrosion protection products, and ball screws used in electric braking systems. By expanding these product categories, NSK aims to improve profitability while aligning its portfolio with the evolving requirements of electrified mobility markets.
In addition to product expansion, the company intends to increase production capacity in India and North America to support anticipated demand growth. The capacity expansion strategy is expected to strengthen NSK’s supply capabilities for automotive customers while improving regional manufacturing flexibility. Through simultaneous restructuring, product portfolio optimization, and targeted investment in electrification-related technologies, the company aims to build a stronger earnings foundation over the medium-term planning horizon.
Frequently Asked Questions
What are the main objectives of NSK’s medium-term management plan through FY2028?
NSK’s medium-term management plan focuses on improving profitability, restructuring production operations, and expanding sales of electrification-related automotive products. The company aims to achieve an operating profit of JPY 75 billion and an ROE of 8% by FY2028. Key initiatives include restructuring facilities in Europe and Japan, increasing production capacity in India and North America, and expanding priority automotive products such as hub unit bearings, electro corrosion protection products, and electric brake ball screws to strengthen competitiveness in the evolving mobility sector.
Which automotive products will NSK prioritize under its FY2028 strategy?
NSK will prioritize several automotive products associated with electrified vehicle technologies and advanced mobility systems. The company plans to expand sales of hub unit bearings for heavy-duty vehicles, electro corrosion protection products, and ball screws used in electric braking systems. These products have been identified as strategic growth areas within the company’s automotive business portfolio. NSK believes increasing demand for electrified vehicles and advanced vehicle technologies will support long-term growth opportunities for these components across global automotive markets.
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