CEO Satoshi Kinoshita Reveals How Tungaloy Leads Cutting Tool Innovation in Japan
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Driving Innovation Forward with Global Agility and Local Insight
As one of the leading cutting tool manufacturers in the world, Tungaloy Corporation continues to redefine its role in the evolving global manufacturing landscape. During the Tungaloy Asia Seminar 2025, held in Iwaki, Japan, M Report had the privilege of being one of only three media outlets invited to join the seminar and factory tour. We sat down with Mr. Satoshi Kinoshita, President and CEO of Tungaloy Corporation, to gain exclusive insights into the company’s strategic direction, innovation focus, and vision for the future.
Balancing Global Trends with Local Realities
“For Tungaloy, we don't focus on only one industry,” Mr. Kinoshita begins. “While automotive is a major sector in Japan—and so are machine tool makers—in other countries, aerospace might be the key market. In Thailand, many Japanese companies are present, but we’re seeing more diverse industries moving in, which is an opportunity.”
Tungaloy holds a strong market share in Japan’s automotive sector, where nearly 40–50% of their business is based. However, Mr. Kinoshita emphasizes the importance of diversification and flexibility. “In Thailand, the automotive sector is already very advanced in terms of quality and volume. But we believe the future is not just about automotive. Thailand will become a hub for new innovative industries, and Tungaloy is ready to support that shift.”
Sustainability: A Strategic Driver
With environmental concerns growing across industries, Tungaloy has taken a proactive stance. “Our product development is aligned with sustainability. Though cutting tools may represent only 3% of the total production cost, our innovations help customers reduce overall costs—especially when they change machines or processes.”
He notes that Tungaloy's approach to sustainability is not just about eco-labels or compliance. “We believe the sustainability trend is not temporary—it’s here to stay. Our job is to ensure our customers gain from this transition, through performance and efficiency.”
A Relentless Innovation Engine
“In the past 15 years, we’ve become the No.1 in terms of new product launches. Last year alone, we launched 57 new items—ten times more than some competitors,” Mr. Kinoshita proudly states. This robust pipeline directly addresses what customers now prioritize: high productivity and performance over price.
He credits Tungaloy’s global network for making this possible. “Our subsidiaries and partners around the world understand our technologies. They work closely with customers, gather feedback, and channel those insights into our R&D process.”
Additionally, Tungaloy embraces open and real-time communication. “We don’t just use paper brochures anymore. Our latest tools and technologies are shared across the website, social media, and even SMS, simultaneously.”
Southeast Asia: A Strategic Market
“Southeast Asia is very important for us. In this region, dealers are not just distributors—they are bridges between us and our customers,” Mr. Kinoshita explains. “We aim to build win-win partnerships where dealers and customers grow alongside Tungaloy.”
As customer priorities evolve, so does Tungaloy’s strategy. “Ten years ago, price was everything. Today, it’s about performance, quality, and speed to market. We are adapting quickly.”
Responding to the Shift in Manufacturing Technologies
New manufacturing trends such as metal 3D printing and high-accuracy casting are changing the game. “These technologies reduce the amount of cutting required, but they also create demand for new solutions. We’re investing in new tool designs to stay ahead of these shifts.”
Mr. Kinoshita adds that automation and AI are central to this transformation. “Automation is a must for ensuring stable quality and high precision. At Tungaloy, automation is already at a high level, and in the next 2–3 years, you will see even higher standards.”
From AI-assisted report generation to automated final inspection systems, AI is one important tool used across Tungaloy’s global operations. Regarding AI adoption in the region more broadly, Mr. Kinoshita shared his observations:
“In Asia, AI helps notify plant managers; in Japan, it supports real-time automation. It’s not about replacing people, but about improving performance and decision-making.”
Corporate Philosophy: Innovation with Agility
Asked about Tungaloy’s business philosophy, Mr. Kinoshita replies with a smile: “We always say: ‘Innovation’ and ‘Step-by-step, but fast.’ Japanese companies tend to move cautiously. But at Tungaloy, we move fast—faster than global competitors. That’s our direction.”
This philosophy is encapsulated in the company’s global campaign: “We Are Tungaloy.” “We have 2,500 people worldwide. All the information flows into Japan—R&D, marketing, production—and we share back to the global teams. We work as one.”
Final Thoughts: Innovation for a Changing World
Tungaloy’s journey is one of constant reinvention. From addressing the specific needs of automotive customers to preparing for the rise of AI, EV, data centers, and aerospace manufacturing, the company remains ahead of the curve.
“Our mission is not just to make cutting tools,” Mr. Kinoshita concludes. “It’s to empower customers with technologies that reduce cost, increase productivity, and support their journey into the future.”
Editor’s Note:
M Report has previously published two exclusive stories from the Tungaloy Asia Seminar 2025:
Stay tuned for more expert insights only on www.mreport.co.th.