JPMorgan Disco (6146): Kuwabata Plant Tour, Disco's Largest Production Facility
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JPMorgan toured Disco's Kuwabata plant in Kure, Hiroshima on 9 October 2026. The facility is Disco's largest production site, employing around 30% of the company's workforce and manufacturing precision processing equipment and consumables. Disco operates three main production bases: the Kuwabata and Kure plants in Hiroshima, the latter currently focused on consumables, and the Chino plant in Nagano.
Efficiency initiatives stood out. In-house automated guided vehicles handle internal materials transport, reducing manual handling time, while the in-house development programme launched in 2019, including proprietary sheet-metal processing equipment, has lowered costs and shortened delivery lead times. Disco plans to complete a new plant at Gohara by April 2028 and will gradually transfer and consolidate consumables production there, further optimising overall production efficiency. JPMorgan concludes that these technology-driven efficiency gains and the Gohara capacity plan support Disco's potential to raise enterprise value. The bank rates the shares Neutral with a December 2027 target price of JPY63,000.