Kawasaki Heavy Industries Faces ESG Controversy Alert from Glass Lewis

Kawasaki Heavy Industries is a general engineering manufacturer with six business segments, including aerospace, rolling stock, energy solutions, precision machinery, powersports, and others. The company operates in various industries and produces a range of products, including aircraft, rolling stock, energy-related equipment, industrial robots, and motorcycles.

Kawasaki Heavy Industries (KHI) is a prominent Japanese company known for its extensive operations across various industrial sectors. Founded in 1878 by Shozo Kawasaki, the company has evolved into a global leader in the manufacturing of transportation equipment, industrial machinery, and energy solutions. With its headquarters in Kobe, Hyogo Prefecture, KHI operates in six primary business segments: aerospace, rolling stock, energy solutions, precision machinery, powersports, and others.

Business Segments and Product Portfolio

1. Aerospace: KHI is a significant player in the aerospace industry, producing aircraft parts, engines, and aircraft. During World War II, the company built major battleships and aircraft carriers, including the Shinano, and created fighter planes such as the Ki-61 Hien. Today, it continues to develop advanced aerospace technology.

2. Rolling Stock: The company manufactures a wide range of railway vehicles, including electric and diesel locomotives, railway cars, and other rolling stock. KHI's railway division was recently spun off as a separate subsidiary, Kawasaki Vehicles, highlighting its commitment to innovation in this sector.

3. Energy Solutions: KHI produces gas turbines, steam turbines, and other energy-related equipment. Its energy solutions division is dedicated to developing and delivering sustainable energy solutions, contributing to the company's overall commitment to environmental responsibility.

4. Precision Machinery: The company specializes in the manufacturing of industrial robots, machine tools, and other precision machinery. KHI's industrial robot division is one of the leading producers in Japan, with a significant presence in both domestic and international markets.

5. Powersports: Kawasaki Heavy Industries is renowned for its motorcycles and jet skis. The company's motorcycle division, Kawasaki Motors Corporation, produces a wide range of two-wheeled vehicles, from sports bikes to cruisers. The iconic Ninja and Vulcan series are among the company's most popular models.

Financial Performance and Market Position

As of March 2019, KHI reported a consolidated net profit of 27.453 billion yen and total assets of 1,838.855 billion yen. The company's net worth stood at 492.261 billion yen, reflecting its strong financial health and market position. KHI is listed on the Tokyo Stock Exchange and is one of Japan's major heavy industries, along with Mitsubishi Heavy Industries and IHI.

Recent Developments

In October 2021, KHI announced the separation of its railroad vehicle business and two-wheeled vehicle engine business into separate subsidiaries. This strategic move aims to focus on the company's core competencies in aerospace and shipbuilding, while also allowing for more specialized management of its other business segments.

Conclusion

Kawasaki Heavy Industries is a diversified and established general engineering manufacturer with a strong presence in various industries. Its extensive product portfolio, coupled with a history of innovation and technological advancement, positions it as a key player in the global market. As the company continues to evolve and adapt to market demands, it remains a significant force in the Japanese and international industrial landscape.

References

[1] https://en.namu.wiki/w/%EA%B0%80%EC%99%80%EC%82%AC%ED%82%A4%20%EC%A4%91%EA%B3%B5%EC%97%85