Netsuren has acquired MDI, a heat exchanger company, to enhance its energy-efficient product offerings and expand its market presence in the thermal management industry.

Target Company Information

Netsuren Co., Ltd. (Ticker: 5976), a leading metal heat treatment company based in Japan, has announced the acquisition of MDI, a company specializing in the design and sale of heat exchangers, as well as providing consulting services for waste heat recovery in factories located in Kawasaki City. This strategic acquisition aims to expand Netsuren's business domain and enhance the development and provision of energy-efficient products and services. MDI has established itself as a significant player in thermal management, serving a diverse clientele focused on sustainability initiatives, including those committed to the Sustainable Development Goals (SDGs) and carbon dioxide reduction efforts. For the fiscal year ending August 2024, MDI reported sales of approximately ¥616 million, an operating profit of ¥155 million, and net assets totaling ¥534 million.

Industry Overview in Japan

The heat exchanger market in Japan has experienced steady growth, driven by increasing energy efficiency demands and industrial automation. As companies in various sectors look to optimize energy consumption and reduce operational costs, the role of heat exchangers becomes increasingly critical. The emphasis on sustainable practices has led to a surge in investments aimed at enhancing energy recovery systems, aligning with national and global sustainability goals.

Additionally, Japan's commitment to reducing greenhouse gas emissions has fueled innovation within the thermal management sector. Government policies promoting energy efficiency and renewable energy usage are inf