Nikon's bold foray into defence and aerospace

The metal 3D printers of Nikon Corp. are being explored by US defence and aerospace companies, according to the president of the Japanese precision equipment manufacturer.

In an interview with Bloomberg TV, Muneaki Tokunari, who serves as Nikon's chief financial officer, disclosed interest from those industries. According to Tokunari, Nikon is raising its global customer base and diversifying into sectors like digital manufacturing amid rigorous interest coming in from the US defence and aerospace industries.

With Japan ramping up its defence spending, a growing number of Japanese firms are expanding into military-use products. Nikon, known for its cameras and chipmaking lithography equipment, took its footprint last year in California following its acquisition of Germany's 3D-printing specialist SLM Solutions Group. In what may have been a politically savvy move, a Nikon subsidiary, Nikon Advanced Manufacturing Inc., last month appointed Mike Mullen, former chairman of the US Joint Chiefs of Staff, as a strategic adviser.

Moreover, Nikon is jointly making a handheld camera that NASA is going to send to the south pole of the moon. This collaboration reflects Nikon's paradigm that it will further its technology to other developing avenues different from the traditional market.

A London-based activist investor Silchester International Investors had, in an earlier development this year, acquired a 5 per cent stake in Nikon. Silchester hinted it may demand higher dividends, share buybacks, and other changes to Nikon's capital policy. The move saw Nikon shares soar upwards by the most in more than a decade.

“One of my assignments is to ask patience of investors, while tackling my colleagues to please rush to make the products faster than the plan,” 64-year-old Tokunari said.

Even though Nikon let the Netherlands' ASML Holding NV corner the market for cutting-edge lithography market, Nikon and Canon Inc. have both gained from the surge in demand for legacy tools used in baking simpler semiconductors for autos and appliances.

The strategic diversification that Nikon may make into defence, aerospace, and sophisticated manufacturing testifies to the adaptability and ability of the company to look ahead. The fact that the company has been able to attract interest in big tickets and forge important partnerships underlines its relevance and potential for growth in changing times.