Nippon Felt

Basic Information

Stock Code
3512
Industry
Textile Products
Category Detail
Spinning & Textiles
Prefecture
Tokyo
Establishment Year
June 1917
Listing Year
February 1951
Official Website
https://www.felt.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Sanko Techno, Ichikawa, Mitsubishi Paper Mills, Habix, Nichia Steel, Ozu Sangyo

Overview

Nippon Felt is a long-established company in the spinning and textile industry founded in 1917, and one of the major domestic manufacturers that shares the market for paper-making felt manufacturing with Ichikawa.

Current Situation

Nippon Felt achieved consolidated sales of approximately 10.4 billion yen and net profit of approximately 770 million yen in the latest fiscal year ended March 2023, maintaining a solid financial base. Its main business is the manufacturing and sales of paper-making felts and industrial fiber products, earning high technical capabilities and trust within the industry. It has major production bases in Saitama and Tochigi, establishing an efficient production system. It is advancing diversification through a holding company structure and nonwoven fabric products business, with unique technological development strengths compared to competitors. It is actively developing environmentally friendly products and sustainability initiatives. In the future, it aims to expand the market through promotion of digitalization and new material development, and is formulating growth strategies toward 2030. It is focusing on expanding affiliates and customers while building systems to respond to intensifying competition.

Trivia

Interesting Facts

  • Founded in 1917, a domestic long-established manufacturer with over 100 years of history.
  • Divides the market share in papermaking felts with Ichikawa.
  • Listed on the Tokyo Stock Exchange Standard Market in 1951 and continues.
  • Strong partnerships with papermaking manufacturers.
  • Develops heat-resistant and eco-friendly felts with proprietary technology.
  • Has a local subsidiary in Taiwan and is expanding in the Asian market.
  • Strengthens collaboration with group companies through holding company structure.
  • Leading company in environmental consideration through development of biodegradable felt products.
  • Head office and operations located in Akabane, Kita-ku, Tokyo.
  • Adapted to the 2022 market category change by transitioning to the Standard Market.
  • Also manufactures and sells industrial detergents and pollution control equipment.
  • Major shareholders include major papermaking companies such as Nippon Paper and Oji Holdings, with deep ties.
  • Possesses specialized technology focused on papermaking felts.
  • Group company with multiple consolidated subsidiaries including Toyama Felt.
  • Traditional company maintaining long-term stable management.

Hidden Connections

  • Major shareholders include leading companies from the papermaking industry.
  • Divides the papermaking felt market with Ichikawa Co., Ltd.
  • Abandoned holding company integration after audit by the Japan Fair Trade Commission.
  • Expands into the Asian region through Taiwan Felt Co., Ltd.
  • Close collaboration with papermaking machinery manufacturers and trading companies for product development.
  • Plays a leadership role in the industry through eco-friendly product deployment.
  • Strengthens supply chain from manufacturing to sales via consolidated subsidiaries.
  • Diversified business expansion beyond papermaking to construction and automotive fields.

Future Outlook

Growth Drivers

  • Expansion of demand for decarbonization and eco-friendly products
  • Sustained demand for high-quality felts in the papermaking industry
  • Strengthened development of new B2B customers
  • Utilization of digitalization and smart manufacturing technologies
  • Promotion of R&D for high-function fiber materials
  • Expansion through active deployment in the Asian market
  • Diversified demand for industrial special fiber products
  • Shift to environmental products due to strengthened regulations
  • Enhanced competitiveness through advanced domestic production bases
  • Construction of sustainable material procurement systems
  • Promotion of innovation through inter-company collaboration
  • Advancement of talent development and technology succession

Strategic Goals

  • Achieve 70% sales ratio for eco-friendly products
  • Strengthen ties with major domestic papermaking companies
  • Expand overseas sales ratio to 30%
  • Realize full digitalization of manufacturing processes
  • Expand market share through new material development
  • Promote acquisition of sustainability certifications
  • Improve employee satisfaction and strengthen talent acquisition
  • Reduce environmental impact in supply chain
  • Strengthen group management centered on holding company
  • Deepen symbiotic relationships with local communities

Business Segments

Felt Supply for Paper Industry

Overview
Provision of high-performance felt products used in papermaking processes.
Competitiveness
Industry-leading technological capabilities and quality control
Customers
  • Papermaking manufacturers
  • Papermaking machine manufacturers
  • Paper and pulp industry
  • Process engineers
Products
  • All types of papermaking felts
  • Needle punch felts
  • Felt belts
  • Functional fiber products

Industrial Fiber Products Supply

Overview
Supply of special-purpose fiber products to various industrial fields.
Competitiveness
Custom product development tailored to needs
Customers
  • Automotive manufacturers
  • Electronic device manufacturers
  • Construction and building materials companies
  • Chemical industry
Products
  • Heat-resistant felts
  • Soundproofing and insulation materials
  • Fibers for electronic parts
  • Special detergents

Environmental and Agricultural Fiber Materials

Overview
Manufactures materials to reduce environmental impact and agricultural fiber products.
Competitiveness
Promotion of sustainable material utilization
Customers
  • Agricultural corporations
  • Environmental conservation groups
  • Building materials sales companies
Products
  • Eco-friendly nonwovens
  • Agricultural insulation covers
  • Soil protection sheets

Medical and Hygiene Fiber Products

Overview
Meets medical site needs with high-function fiber products.
Competitiveness
Compliance with strict quality control standards
Customers
  • Medical institutions
  • Hygiene product manufacturers
  • Pharmaceutical companies
Products
  • Medical nonwovens
  • Absorbent felts
  • Materials for hygiene pads

Fiber Parts for Automotive and Transport Equipment

Overview
Supply of interior and functional fiber parts for automobiles.
Competitiveness
High durability and lightweighting technology
Customers
  • Automotive manufacturers
  • Parts suppliers
Products
  • Sound absorption felt pads
  • Interior fiber sheets

High-Function Fibers for Electronics

Overview
Provides functional materials for precision equipment.
Competitiveness
High technological compatibility
Customers
  • Electronic device manufacturers
  • Semiconductor-related companies
Products
  • Insulating felts
  • Cleanroom fibers

Fiber Materials for Construction and Interiors

Overview
Provides fiber products supporting comfortable space creation.
Competitiveness
Fusion of design and functionality
Customers
  • Architectural design firms
  • Interior companies
  • Building materials dealers
Products
  • Insulation and soundproofing felts
  • Interior panels

Fiber Products for Packaging and Transport

Overview
Provides fiber protective materials supporting transport safety.
Competitiveness
Optimization of durability and cushioning
Customers
  • Logistics companies
  • Product manufacturers
  • Packaging materials suppliers
Products
  • Impact-resistant felt pads
  • Protective packaging materials

Materials for Sports and Leisure

Overview
Fiber products with water resistance and durability.
Competitiveness
Application capabilities for high-function materials
Customers
  • Sports equipment manufacturers
  • Outdoor gear companies
Products
  • Waterproof felt sheets
  • Outdoor mats

Fiber Materials for Daily Sundries and Furniture

Overview
Multi-purpose fiber products for daily goods.
Competitiveness
Broad product adaptability
Customers
  • Furniture manufacturers
  • Sundries producers
Products
  • Cushioning felt materials
  • Decorative fibers

Parts Supply for Textile Machinery

Overview
Provision of high-durability fiber products for machinery parts.
Competitiveness
Long-life product design technology
Customers
  • Textile machinery manufacturers
  • Industrial machinery suppliers
Products
  • Felt seals
  • Conveyance belts

Environmental Technology Fiber Products

Overview
Fiber development to reduce environmental impact.
Competitiveness
Expertise in eco-friendly materials
Customers
  • Environmental technology companies
  • Recycling firms
Products
  • Recycled nonwovens
  • Energy-saving insulation materials

Competitive Advantage

Strengths

  • Long-accumulated technology and high market share in papermaking felts
  • Diverse fiber product lineup
  • Stable financial base and high equity ratio
  • High-quality production management system
  • Strong trust relationships with clients
  • Extensive domestic production bases
  • Group synergy through holding company structure
  • Proprietary special fiber technology development
  • Early deployment of environmentally friendly products
  • Expansion of sales channels to global markets

Competitive Advantages

  • High market share in papermaking felts, dividing the market with Ichikawa
  • Custom product development responding to wide customer needs
  • Deployment of diverse product range for industrial fields
  • Long-term stable supply chain construction
  • High-quality products and excellent durability
  • Sustainable material development compliant with environmental regulations
  • Customer-close sales support system
  • Robust production infrastructure and latest equipment
  • Continuous R&D for technological advancement
  • Strong ties with major domestic papermakers

Threats

  • Risk of entry by overseas companies strengthening international competitiveness
  • Cost increases due to raw material price fluctuations
  • Decline in demand from shrinking papermaking industry market
  • Challenges in product compatibility due to strengthened environmental regulations
  • Substitution risk from technological innovations in new materials and alternatives
  • Challenges in securing talent amid declining domestic labor population
  • Fluctuations in import equipment and material costs due to exchange rate changes
  • Impact on production bases from natural disasters
  • Risks of IP infringement and technology leakage
  • Instability in global economic conditions

Innovations

2024: Introduction of Environmentally Friendly Production Processes

Overview
Implemented CO2 emission reductions and energy-saving equipment in factories.
Impact
Achieves both production cost reduction and environmental load mitigation

2023: Development of New Material Nonwovens

Overview
Commercialized high-function nonwovens using recycled fibers.
Impact
Expansion of eco-friendly product lineup

2022: AI Optimization of Production Lines

Overview
AI introduction project aimed at improving production efficiency.
Impact
10% improvement in manufacturing yield

2021: Practical Application of Improved Heat-Resistant Felt Technology

Overview
Developed new felt material with enhanced heat resistance.
Impact
Improved customer satisfaction in industrial machinery field

2020: Launch of Biodegradable Felt Products

Overview
Products adopting biodegradable materials considerate of environmental impact.
Impact
Responds to rising market environmental awareness

Sustainability

  • Active introduction of biodegradable and recycled materials
  • Continuous improvement of waste recycling rate
  • Promotion of renewable energy use in factories
  • Advancement of product design compliant with environmental standards
  • Participation in environmental collaborative activities with local communities
  • Implementation of environmental education and employee awareness programs
  • Thorough resource efficiency and waste reduction
  • Strengthened environmental audits across the supply chain
  • Participation in papermaking industry sustainability initiatives
  • Acquisition and maintenance of environmental certifications (ISO 14001 etc.)
  • Improvement of water usage efficiency and enhanced wastewater management
  • Promotion of R&D for environmental load reduction technologies