NOK Corporation has sold its subsidiary, Shinji Tech, a manufacturer of roll products for office automation equipment, to an SMBC Capital Partners-managed fund amid declining demand in the OA industry.

Target Company Information

NOK Corporation, a manufacturer of automotive parts, has decided to divest its subsidiary, Shinji Tech, which specializes in the production of roll products for office automation (OA) equipment. Based in Minato, Tokyo, Shinji Tech produces key components such as pressure rolls that stabilize toner onto paper, as well as feeding and photoconductive peripheral parts. For the fiscal year ending March 2025, Shinji Tech reported sales of ¥22.8 billion, operating profit of ¥1.83 billion, and total net assets amounting to ¥17 billion.

Industry Overview in Japan

The Japanese office automation industry has been experiencing significant changes driven by the ongoing transition towards paperless operations. This trend has led to a considerable decline in demand for traditional OA products, thereby adversely affecting manufacturing companies in this sector. As workplaces evolve in response to digitalization, revenues from paper-based products have substantially decreased, forcing companies to reassess their market strategies.

In Japan, where technology and innovation continue to shape various industries, the focus is now on integrating advanced digital solutions into office