Unitika

Basic Information

Stock Code
3103
Industry
Textile Products
Category Detail
Spinning & Textiles
Prefecture
Osaka Prefecture
Establishment Year
June 1889
Listing Year
May 1949
Official Website
https://www.unitika.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Toyobo, Fujibo Holdings, Omi Kenshi, Teijin, Toray, Kitanihon Spinning, Fujix, Fuji Oil, Orchestra, Akebono Brake

Overview

Unitika is a long-established company founded in 1889. With textiles as its core business, it has expanded into chemical fibers and functional materials fields, establishing itself as a mid-tier comprehensive chemical manufacturer in the textile products industry.

Current Situation

In the fiscal year ended March 2021, Unitika recorded consolidated net sales of approximately 110.3 billion yen and operating profit of approximately 6 billion yen, deploying a wide range of textile products and chemical-related businesses. While textiles remain its founding business, it is expanding into non-textile areas such as polymer films and resin products, with plans to withdraw from the textile business by August 2025. The company has its head offices in Osaka and Tokyo, multiple business sites domestically and internationally, and products ranging from apparel fibers to industrial materials and high-performance films. Major customers include industrial companies and distribution channels, and it belongs to the Sanwa Group under Mitsubishi UFJ Bank. Although it faced issues with falsified inspection data in the past, it has since undertaken business restructuring and strengthened its financial base, aiming for sustainable growth. Moving forward, it plans to bolster technology development in functional materials and polymer products while advancing sustainability initiatives.

Trivia

Interesting Facts

  • Textile company with over 130 years of history since founding in 1889.
  • Planning to withdraw from textile business in 2025 and refresh business structure.
  • Member of Sansui-kai of Sanwa Bank (now Mitsubishi UFJ Bank).
  • Formerly operated the women's volleyball team 'Nichibo Kaizuka'.
  • Holds proprietary technology for biodegradable polymer 'Terramack'.
  • Veteran textile manufacturer listed on the Prime Market of the Tokyo Stock Exchange.
  • Historically strong in rayon fiber manufacturing.
  • Also manufactures activated carbon fibers and amorphous metal fibers.
  • Gained social attention due to past inspection data falsification issue.
  • Experienced payment of approx. 2.6 billion yen in land sale lawsuit in Toyohashi City.
  • Active regional contributions through operation of sports teams.
  • Engaging in diversified business through collaboration with multiple subsidiaries.
  • Member of Sanwa Group and Midori-kai.
  • Corporate slogan is 'We Realize It!'
  • Diverse product lineup from fibers to resins, films, and nonwovens.

Hidden Connections

  • Belongs to Sansui-kai of Sanwa Bank series, with strong capital and business ties to Mitsubishi UFJ Bank.
  • Established through merger of Nichibo and Japan Rayon, collaborating with multiple bases and group companies in textiles and chemicals.
  • Past women's volleyball team known as 'Oriental Witches' with high social recognition.
  • Established joint subsidiary with Osaka Gas for activated carbon fiber manufacturing.
  • Experienced legal disputes with local government and residents related to land sale lawsuit.
  • Many subsidiaries serve as core industries in regions, contributing to local economies.
  • Engaging in capital and business collaborations with other Mitsubishi Group-related companies.
  • Extensive participation in cultural events with talents due to corporate sponsorship experience.

Future Outlook

Growth Drivers

  • Increasing demand for high-function fibers and functional materials
  • Expansion of environmentally responsive product markets
  • Business structure reform through exit from textiles
  • Acceleration of global expansion and new market development
  • Strengthening new material creation through R&D
  • Technological innovation in sustainable materials
  • Technological advancements in industrial film fields
  • Growing demand for medical and hygiene nonwovens
  • Efficiency gains through digitalization and DX promotion
  • Flexible response to diversifying customer needs
  • Advancement and differentiation of existing technologies
  • New business development through subsidiary collaboration

Strategic Goals

  • Achieve over 70% ratio of non-textile business
  • Become a leading company in biodegradable polymer market
  • Expand product lines compatible with carbon neutrality
  • Technological innovation through increased R&D investment
  • Over 50% sales ratio in global markets
  • Enhance corporate transparency and governance
  • Expand CSR activities coexisting with local communities
  • Set and achieve specific targets for reducing environmental impact
  • Organizational strengthening through diverse talent recruitment and development
  • Promote production innovation using digital technologies

Business Segments

High-Functional Fibers for Industrial Materials

Overview
Provides industrial high-function fiber products to meet needs across diverse industries.
Competitiveness
Diverse fiber technologies and product deployment capabilities
Customers
  • Electronics manufacturers
  • Automotive parts manufacturers
  • Building materials manufacturers
  • Filter manufacturers
  • Secondary processors
Products
  • Carbon fiber
  • Glass fiber
  • Metal fiber
  • Activated carbon fiber
  • High-function films

Packaging and Protective Films

Overview
Manufactures and supplies packaging films that balance environmental considerations and high performance.
Competitiveness
Proprietary biodegradable polymer 'Terramack' technology
Customers
  • Food packaging companies
  • Electronic parts manufacturers
  • Medical materials manufacturers
  • Cosmetics manufacturers
  • Logistics companies
Products
  • Biaxially oriented nylon film
  • Biodegradable polymer film
  • Plastic packaging materials

Nonwoven Manufacturing and Sales

Overview
Provides multi-purpose nonwoven products from medical to industrial use.
Competitiveness
Stable quality control and extensive product lineup
Customers
  • Medical institutions
  • Hygiene product manufacturers
  • Construction materials manufacturers
  • Agricultural materials manufacturers
Products
  • Polyester nonwoven
  • Cotton spunbond nonwoven
  • Filter nonwoven

R&D Products

Overview
Develops and provides proprietary materials using cutting-edge technologies.
Competitiveness
Long track record in research and high technological capabilities
Customers
  • Major chemical manufacturers
  • Universities and research institutions
  • Emerging technology companies
Products
  • Special polymer materials
  • New functional fibers
  • Eco-friendly materials

Competitive Advantage

Strengths

  • Long history and trusted brand
  • Diverse textile and chemical material technologies
  • Business diversification from textiles to non-textiles
  • Global production and sales network
  • Improved financial stability
  • Proprietary technology in high-function films
  • Manufacturing technology for industrial specialty fibers
  • Strong ties with local communities
  • Enhanced collaboration within and outside the group
  • Promotion of sustainable material development
  • Flexible response to customer needs
  • Influence in industry associations
  • Diverse product portfolio
  • Robust R&D organization
  • Active promotion of ESG measures

Competitive Advantages

  • Differentiation through product range covering synthetic to regenerated fibers
  • Advanced development capabilities in biaxially oriented nylon films
  • In-house development of biodegradable polymer technology
  • Stable credit base and funding capabilities from the Sanwa Group
  • Diverse customer base and transaction history in the industry
  • Supply capabilities for high-performance materials in specific functional material applications
  • Technological innovation through collaboration with extensive research institutions
  • Deep penetration in the medical field with nonwoven business
  • Response to improved profitability through business restructuring
  • Leadership in developing products addressing environmental issues
  • Business risk diversification through multi-segmentation
  • Adaptation to market changes with diverse product lineup
  • Strong partnership building with customers
  • Enhanced brand recognition and market evaluation
  • Strategic investments based on long-term vision

Threats

  • Shrinking domestic demand in the textile industry and withdrawal pressures
  • Intensifying competition from low-cost overseas companies
  • Risk of raw material price fluctuations
  • Rising business operation costs due to stricter environmental regulations
  • Decline in corporate image from past inspection data falsification issue
  • Lagging behind competitors due to delays in technological innovation
  • Political and economic instability in overseas markets
  • Technological advancements by new entrants
  • Impact of yen depreciation/appreciation exchange rate fluctuations
  • Shortening product life cycles
  • Domestic market shrinkage due to population decline
  • Rapid changes in customer needs

Innovations

2024: Accelerated business restructuring accompanying textile business withdrawal

Overview
Withdraw from textile business by end of August 2025 and focus on non-textile fields.
Impact
Optimization of management resources and strengthening of earnings base

2023: Promotion of commercialization of Terramack biodegradable polymer

Overview
Expanding market launch of environmentally friendly films to address environmental issues.
Impact
Increase in sales ratio of environmentally responsive products

2022: Partial restructuring and integration of resin and film manufacturing business

Overview
Absorb and merge Unitika Uji Products, etc., to improve production efficiency.
Impact
Cost reductions through business efficiency

2021: IT and structural reform initiatives for business efficiency

Overview
Promoting digital transformation in the business planning division.
Impact
Faster and more accurate business planning

2020: Strengthening technology development in medical and functional materials business

Overview
Continuously conducting development of new materials and research on high-function fibers.
Impact
Enhanced competitiveness in industrial applications

2020: Response to nonwoven inspection data falsification issue

Overview
Strengthening internal compliance system and rebuilding quality control.
Impact
Efforts to restore social trust

Sustainability

  • Expansion of biodegradable polymer 'Terramack'
  • Reduction of environmental impact in manufacturing processes
  • Strengthening waste reduction and recycling utilization
  • Promotion of coexistence programs with local communities
  • Introduction of green procurement standards
  • Active introduction of energy-saving equipment
  • Environmental awareness activities for employees
  • Support for strengthening environmental responses of partner companies
  • Expansion of information disclosure in CSR reports
  • Thorough compliance with environmental laws and voluntary standards
  • Ensuring sustainability of the supply chain
  • CO2 emission reductions in transportation and logistics