Disclosure
April 14, 2026
Listed company name: Fuji Seiko Co., Ltd.
Notice Regarding the Supply of Cutting Tools Due to Export Restrictions in China
Today (April 14, 2026), in the summary of financial results for the fiscal year ended February 2026, we announced our consolidated earnings forecast for the fiscal year ending February 2027. However, there may be an impact from changes in the business environment concerning the supply of cutting tools due to export regulations in China. The amount of such impact has not been factored into the announced earnings forecast, but we would like to inform you of the facts and outlook as of this time.
1. Overview of the situation
As already reported in the news and elsewhere,
due to the impact of the Chinese government’s tighter export controls on critical minerals, the supply to Japan of tungsten, the main raw material for cemented carbide, has currently become extremely unstable.
Our suppliers of carbide materials had been working to secure a stable supply of raw materials; however,
tungsten powder that had already been ordered has been held up in Chinese customs since the beginning of the year, and at present there is no prospect for the resumption of imports.
In addition to our existing suppliers, we are working to procure alternative carbide materials,
but we have not yet been able to confirm that we can secure the quantities necessary for a stable supply.
2. Impact on business performance
If the procurement of carbide materials becomes difficult, impacts on product supply are expected, such as delivery delays and restrictions on new orders.
In addition, prices of carbide materials are expected to continue rising. Even if materials can be procured to maintain a stable supply,
increases in raw material costs will be unavoidable, and depending on the progress of passing these costs on through sales prices, there may also be an impact on net sales and operating profit.
Under these circumstances, it is difficult to predict future developments, and since it is currently difficult to calculate the amount of impact, the earnings forecast announced today in the financial results summary does not incorporate this impact.
Product groups expected to be affected: Cutting tools such as drills and reamers that use carbide materials as raw materials
Business scale of the affected product groups: Approximately 30% of consolidated net sales.
3.Outlook going forward
We will continue to closely monitor developments and gather information while striving to maintain our production and sales systems. In addition, we will promptly disclose the impact on business results as soon as the amount becomes clear.
No more super-hard machining tools, looks like the deindustrialization of Japan is inevitable, even if the Takaichi cabinet is desperately trying to cover it up.