TOCALO
Basic Information
- Stock Code
- 3433
- Industry
- Metal Products
- Category Detail
- Iron, Steel & Metal Products
- Prefecture
- Hyogo Prefecture
- Establishment Year
- July 1951
- Listing Year
- December 2003
- Official Website
- https://www.tocalo.co.jp/
- TSE Information
- TSE Information
- Yahoo! Finance
- Yahoo! Finance
- Other Companies
- SoftCreate, System Research, Yokogawa Bridge HD, Netsuren, Moritex Steel, OneX
Overview
TOCALO is a metal surface modification specialist company founded in 1951 and based in Kobe City, Hyogo Prefecture. It is an industry leader with strengths in high-precision metal processing centered on thermal spraying technology.
Current Situation
TOCALO recorded consolidated net sales of 54.2 billion yen, operating income of 12.3 billion yen, and net income of 8.1 billion yen for the fiscal year ending March 2025, maintaining a solid financial base. It has built a high market share in metal surface treatment, particularly parts processing utilizing thermal spraying technology, for aerospace and semiconductor-related companies both at home and abroad. Through multiple domestic factories and overseas subsidiaries, it accommodates diverse customer needs and is strengthening production capacity. Currently, it is focusing on new factory construction in response to expanding semiconductor demand, enhancement of quality management systems, and development of environmentally compatible products. In terms of sustainability, it engages in ISO 14001 environmental management certification and waste reduction efforts, and in the long term, it aims to further advance global expansion and bolster technological capabilities. In recent years, following an MBO and acquisition of parent company shares, it has secured independence and, with a solid management foundation, aims for medium- to long-term growth. Advanced technology development and acquisition of quality certifications for the aerospace industry serve as the core for maintaining competitive superiority.
Trivia
Interesting Facts
- Began research on metal thermal spraying in 1958
- Certified in Aerospace Quality Management System JIS Q 9100
- Acquired naming rights for Hyogo Prefectural Akashi Park No.1 Baseball Stadium and named it 'Akashi TOCALO Stadium'
- Operates multiple overseas subsidiaries for global expansion
- Established independent management structure through long-term MBO
- Pioneering presence in Japan's surface modification industry
- Operates over 10 factories and sales offices domestically and internationally
- Specializes in processing for semiconductor and LCD manufacturing equipment fields
- Acquired ISO 9002 certification as early as 1999
- Possesses special coating technology for defense industry
- Practicalized thermal spraying technology at multiple bases in Hyogo Prefecture
- Stable growth as a core company in the iron, steel, and metal products industry
- Subsidiary owns Japan Coating Center
Hidden Connections
- Holds naming rights for multiple public facilities in home prefecture of Hyogo, demonstrating high local embeddedness
- Provides technology as a collaborative supplier to major industrial equipment manufacturers such as Toshiba and Hitachi
- Accelerated growth through technology investments via capital ties with JAFCO
- High-quality products compliant with aerospace quality standards are highly evaluated across various fields
- Established subsidiaries in Guangzhou, China; Kunshan, Jiangsu Province; and Tainan, Taiwan for local production
- Advances technology improvements in thermal spraying in collaboration with research institutions in Hyogo Prefecture
- Constituent of JPX Nikkei Mid and Small Cap Index, positioned as a mid-cap growth stock
- Listed on the Tokyo Stock Exchange Prime Market, indicating high reliability
Future Outlook
Growth Drivers
- Global demand expansion in semiconductor and LCD manufacturing equipment markets
- Advancement of aerospace industry and increasing quality requirements
- Evolution of high-function surface treatment technologies centered on thermal spraying
- Capture of emerging country demand through global expansion
- Development of environmentally considerate products in response to strengthened environmental regulations
- Innovation in processing technologies for new materials and composites
- Improved production efficiency through digitalization and automation
- Technological differentiation through R&D investment
- Expansion of collaboration and joint development with upstream and downstream industries
- Shift to high value-added product areas
- Enhanced customer loyalty through locally embedded service provision
- Strengthened trust via ISO and JIS certifications
Strategic Goals
- Expand overseas sales ratio to over 40% of global market
- Expand sales and strengthen technology in aerospace-related areas
- Achieve over 50% sales ratio for low-environmental-impact products
- Complete DX and automation of production lines
- Acquire ISO certifications for all factories to support sustainable management
- Achieve 10 billion yen in sales from new business areas
- Strengthen quality management systems in Japan and overseas
- Maintain and increase R&D expenses at 3% of sales
- Establish technologies for industrial new materials
- Continuously strengthen coexistence with local communities and social contributions
Business Segments
Semiconductor Equipment Parts Processing
- Overview
- Processing business providing high-function parts for cutting-edge semiconductor manufacturing equipment.
- Competitiveness
- Realizes high reliability with proprietary thermal spraying technology and quality certifications.
- Customers
-
- Semiconductor manufacturing equipment manufacturers
- Electronic component manufacturing companies
- Foundry service providers
- Semiconductor research institutions
- Precision processing suppliers
- Products
-
- Corrosion-resistant surface treated parts
- High-precision thermal spray processed parts
- Thin film coating products
- Surface hardening treated parts
- LCD manufacturing parts
Surface Treatment for Aerospace and Defense Industries
- Overview
- High-function surface treated product lineup that meets the stringent requirements of the aerospace field.
- Competitiveness
- High-quality assurance through JIS Q 9100 certified factories.
- Customers
-
- Aircraft parts manufacturers
- Defense equipment-related companies
- Space development agencies
- Research and development institutions
- Quality-certified factories
- Products
-
- Heat-resistant ceramic thermal spray parts
- Special coating parts
- High-durability surface treated products
- Wear-resistant processed parts
- Quality-certified products
Parts Supply for LCD Manufacturing Equipment
- Overview
- Manufacturing of high-precision processed and surface treated parts for LCD manufacturing equipment.
- Competitiveness
- Strength in high-precision technology and mass production capabilities.
- Customers
-
- LCD panel manufacturers
- Manufacturing equipment manufacturers
- Parts trading companies
- Research and development bases
- Industrial machinery manufacturers
- Products
-
- Surface modification parts
- Precision plating parts
- Polishing processed parts
- Thin film processed products
- Equipment spare parts
Automotive-Related Parts Processing
- Overview
- Provision of durability-enhanced parts that meet automotive industry quality requirements.
- Competitiveness
- Advanced thermal spraying technology and custom response capabilities.
- Customers
-
- Automotive parts manufacturers
- Automobile manufacturers
- Industrial machinery manufacturers
- Supply chain companies
- Research institutions
- Products
-
- Wear-resistant coating parts
- Corrosion-resistant surface processed parts
- Precision thermal spray processed products
- Heat treated processed parts
- Prototype development parts
Industrial Machinery Parts Processing Services
- Overview
- Provision of a wide range of surface treatment processing services for industrial machinery.
- Competitiveness
- Diverse processing technologies and rapid response capabilities.
- Customers
-
- Machinery manufacturers
- Mold manufacturers
- Electronic equipment manufacturers
- Industrial research institutes
- Equipment maintenance service providers
- Products
-
- Various surface treated processed products
- Plating and polishing parts
- Special thermal spray parts
- Industrial spare parts
- Prototypes and mass-produced items
Competitive Advantage
Strengths
- Possesses advanced thermal spraying technology
- Multi-site production system
- Acquisition of quality certifications such as JIS Q 9100
- Surface treatment know-how for diverse industries
- Solid financial base
- ISO 14001 environmental certification acquisition
- Management structure with enhanced independence
- Sales network domestically and internationally
- Ongoing investment in technology development
- Broad customer base
- High-precision processing technology
- Provision of wear-resistant and corrosion-resistant products
- Cost competitiveness through overseas factories
- Well-equipped research and development bases
- Long track record in the surface treatment market
Competitive Advantages
- Industry-leading technology in thermal spraying
- Advanced quality management system for aerospace
- Specialized position in semiconductor equipment parts market
- Response to diverse customer needs through multi-site expansion
- Early development of environmentally compatible products
- In-house technological development capabilities and patent acquisitions
- Rapid decision-making structure via MBO
- Accumulated know-how in advanced surface treatment technology
- Operation of quality systems compliant with international standards
- Local production strategy at overseas factories
- Cross-segment capabilities across multiple industries
- Long-term trust relationships with customers
- Stable market share in Japan
- Integration of materials science and processing technology
- Strong technological foundation for quality assurance
Threats
- Risks from fluctuations in the global semiconductor market
- Rising raw material prices
- Technological innovations by competitors
- Intensified competition from new market entrants
- Export restrictions due to changes in international situations
- Cost increases from strengthened environmental regulations
- Profitability fluctuations due to exchange rate variations
- Revenue dependency risk from customer concentration
- Difficulty in securing technical personnel
- Geopolitical risks
- Delays in responding to new technologies
- Supply chain vulnerabilities
Innovations
2022: Relocation and Expansion of Kurashiki Factory
- Overview
- Relocated Mizushima Factory to Kojima Unotsu, Kurashiki City, and strengthened manufacturing capacity and equipment.
- Impact
- Achieved increased processing volume and improved quality
2020: Strengthening Aerospace Quality Management
- Overview
- Acquired JIS Q 9100 certification at Akashi Factory to enhance capabilities for the aerospace industry.
- Impact
- Increased orders for new aircraft parts
2023: New Building Construction at Kitakyushu Factory
- Overview
- Constructed a new building at Kitakyushu Factory to respond to increasing semiconductor demand.
- Impact
- 20% expansion in production capacity
2024: New Building Addition at Chiba Factory
- Overview
- Added a new building at the Gyoda Business Site of the Tokyo Factory in Chiba to enhance surface treatment lines.
- Impact
- Shortened manufacturing lead times
2021: Development of Low-Environmental-Impact Thermal Spray Materials
- Overview
- Developed and began mass production of new thermal spray materials with reduced environmental impact.
- Impact
- Expanded sustainable product lineup
Sustainability
- Expansion of ISO 14001 certified factories
- Improvement in waste recycling rate
- Development of low-environmental-impact thermal spray materials
- Introduction of energy-saving equipment
- Promotion of environmental conservation activities with local communities
- Ongoing response to reduction of hazardous substances
- Promotion of sustainable resource utilization
- Advancement of green procurement
- Strengthening of wastewater and exhaust management
- Thorough environmental education for employees
- Enhancement of environmental management system
- Environmental assessment of supply chain