[Onoken Co., Ltd.] Selected for METI’s Large-Scale Growth Investment Program

Overview of the Grant Program

The program aims to promote large-scale investments by medium-sized enterprises that support regional employment to address critical challenges like labor shortages, ultimately achieving sustainable wage increases in local areas. In this 5th public offering, 77 projects were selected out of 198 applicants (a selection ratio of approximately 2.6x).

Onoken has been selected for a 10.54 billion JPY grant project (grant amount approx. 2.6 billion JPY) aimed at "strengthening high-value-added services through increased logistics and processing capabilities, and promoting data-driven management via IT infrastructure development." The project details are as follows:

1. Logistics Enhancement through New Warehouse Construction (approx. 6.34 billion JPY) Strengthening the nationwide logistics supply system, including the expansion and relocation of the Oita Head Office and warehouse extensions at the Hokuriku Branch (Kanazawa City).

2. Processing Enhancement through Equipment Upgrades (approx. 3.63 billion JPY) Introducing cutting-edge laser processing machines and steel shape processing machinery at major nationwide branches to strengthen high-value-added models.

3. DX Infrastructure Enhancement (approx. 0.57 billion JPY) Building a steel product e-commerce platform through CRM implementation and re-organizing operational foundations.

Project Objectives and Future Initiatives

Anticipated factors include continuous demand from public investments based on the national resilience plan, infrastructure renewal needs, and the designation of the shipbuilding industry as a key state industry, driving steel demand in the shipbuilding supply chain. Furthermore, against a backdrop of severe labor shortages in the construction, shipbuilding, and logistics sectors, needs for stock functions and processing are rising.

Leveraging a network of 48 bases (as of April 2026, consolidated) and internal logistics capabilities, we cover everything from material provision to construction for manufacturers and construction companies nationwide. By providing further high-value services, diversifying sales channels, and leading DX in the steel distribution industry, we aim to enhance productivity, increase sales, and improve profit margins. Profits from business expansion are planned to be reinvested into human capital through an annual 6% wage hike.

Comment from President Tsuyoshi Ono

I am delighted that our selection for the "Large-Scale Growth Investment Grant" recognizes our significance in contributing to national and community development. We have continued to grow alongside regional communities by supporting social infrastructure through our steel and construction businesses. By realizing this project, we intend to contribute to structural transformation in the steel distribution industry and reduce burdens in the construction, manufacturing, and logistics sectors, thereby contributing to regional and societal revitalization.