The environment surrounding Japanese businesses is undergoing great changes. All industries are engulfed in waves of global competition, mainly because of the advent of a borderless economy and a ubiquitous age when information is instantly exchanged, as well as the rise of China. The automotive parts industry, which is our main market, is no exception. Cross-border alliances are rapidly increasing among businesses around the world. In this age of violent changes, Nukabe is effectively meeting customer needs, making the most of its advanced processing and manufacturing technology and its worldwide production networks, which have been created and cultivated since its establishment. In the area of processing and manufacturing technology, we have achieved micron-level accuracy, which is essential for the production of functional parts using difficult-to-grind materials, and have also established an integrated system for assembling various parts in response to the increasing trend toward making parts as components. In terms of quality, we are continuing improvement activities with the concerted efforts of all of our employees. In the area of production networks, we have completed plants in the U.S. and China, which were added to our four existing plants and affiliates in Japan, thereby setting up a system of international specialization for making parts at the best place according to their type. The arrival of a great age of competition, when we have to do business in a global market, presents us with difficulties, but also gives us opportunities to open up new markets. Nukabe is working to produce high-value added products as an independent, idea-proposing manufacturer, making the most of its excellent processing technology and its tri-polar system in Japan, the U.S., and China. We are dedicated to continuing to contribute to communities, while placing importance on activities as a good corporate citizen. President Noriyoshi Nishida