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volumes of its established products, mainly engines for recre- ational vehicles. The company aims to further push up sales of the EX engine and other new products to boost the company back into profitability. 

For fiscal 2007, the final year of FDR-1, the Industrial Products Company is targeting a full 50% increase in net sales, to ¥50.0 billion, from fiscal 2003, the first year of the five-year plan, and an operating profit margin of 3%. To achieve these goals, the company will seek to improve the brand recognition of its Robin brand to make it a premium offering. General-purpose engines differ from special purpose engines in that it is difficult to distin- guish among products, which tends to drive down market prices. To avert this problem, it is essential to demonstrate superiority through strong cooperation in development, manufacturing, and marketing to ensure the use of designs compatible with customer needs, strict compliance to delivery dates, and provision of expert technical support and meticulous service. This is also the 

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Fiscal 2003 marked the Eco Technologies Company’s first year of operations as an internal company of FHI. The start of volume production of wind turbine generator systems and continued strong sales of the Fuji Mighty sanitation truck, which remains number one in the industry, contributed to sales of ¥8.0 billion, an increase of ¥1.1 billion, or 16%, from the company’s sales as a division in the previous fiscal year. The company was progres- sively strengthening its management structure via improvements in its production and distribution systems, reduction in costs, and cutbacks in sales and production costs. 

Going forward, Eco Technologies plans to further improve profitability through sales increase, cost reductions and higher asset utilization. 

## Increased Sales 

The Eco Technologies Company aims to maintain and expand its dominant share of the domestic sanitation truck market by strengthening its domestic sales network, as well as to pro- gressively develop a global strategy. In the area of wind-power generation, the company expanded sales of wind turbine gener- ator systems and is embarking on research and development of larger-scale systems to achieve additional growth. 

## Reduction in costs 

As sanitation trucks constitute Eco Technologies’ core business, the reduction in material costs is an area of the highest manage- ment priority. Through a new production management system, the company has implemented a systematic plan to reduce costs from the receipt of orders through to delivery as well as 

## Eco T echnologies Company 

best way to beat out new market entrants in China. 

It is also critical to search for a way to create high-value- added new businesses, and so it is necessary to promote timely development with a precise understanding of market needs. In this age, the race will go to the company who rushes to deliber- ate action upon obtaining precise information before all others. 

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a monitoring system to ensure that the plan proceeds smoothly. The company will also seek to rationalize operations through labor-saving equipment and the reduction of production process requirements. Management will reduce in costs by efficiently concentrating purchases according to the supplier’s specialty and item type, boosting value-added activities through linkage with design tasks, and, integrating suppliers in the input materials acquisition and production processes. 

## Assets Utilization 

In conducting its business activities, the Eco Technologies Company’s assets will be decreased to the absolute minimum, ensuring that it will become a lean and muscular company. 

In line with the strategy of organizing our operations to increase sales and reduce costs, we aim to become a growth business with ¥14.0 billion in sales and ¥1.0 billion in operating income by fiscal 2007. Going forward, all of our employees will dedicate themselves to making Eco Technologies Company to be an enterprise of strong pres- ence and attractive value by creating a new business for global environment conserva- tion. 

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