Ichikawa

Basic Information

Stock Code
3513
Industry
Textile Products
Category Detail
Spinning & Textiles
Prefecture
Tokyo
Establishment Year
February 1918
Listing Year
May 1951
Official Website
https://www.ik-felt.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Primex, Azuma House, Felt, Mitsubishi Paper Mills, Habix, Kozu Sangyo

Overview

Ichikawa is a specialized manufacturer of papermaking equipment founded in 1918, representing a leading industry giant in Japan in the papermaking felt sector.

Current Situation

In the fiscal year ended March 2023, Ichikawa recorded consolidated net sales of approximately 13.3 billion yen and operating profit of approximately 800 million yen, maintaining a high market share in papermaking felts and industrial felts for the paper industry. Its core papermaking felt business shares the domestic market with Japan Felt, holding an almost monopoly position for small and medium-sized papermakers. Products are high-quality, with a focus on expanding belt products and industrial felts to meet diverse customer needs. Production bases are concentrated in Kashiwa City, Chiba Prefecture, and Kasama City, Ibaraki Prefecture, establishing an efficient system. In terms of sustainability, it has obtained ISO14001 and ISO9001 certifications and promotes environmentally considerate manufacturing processes. While responding to intensifying market competition and fluctuations in raw material prices, it is advancing business diversification and global expansion through technological innovation and utilization of overseas subsidiaries. Moving forward, it aims for long-term growth by strengthening its revenue base through the development of functional materials and introduction of new products.

Trivia

Interesting Facts

  • Founded in 1918, a long-established felt specialist company
  • Shares domestic market dominance with competitor Japan Felt
  • Early acquisition of ISO9001 and 14001 certifications
  • Production bases in two locations: Kashiwa City, Chiba Prefecture, and Kasama City, Ibaraki Prefecture
  • 2002 industry reorganization plan withdrawn due to Fair Trade Commission
  • Nearly monopolizes papermaking felt market for small and medium papermaking plants
  • Chairman and Representative Director is Masataka Ushio
  • Capital of approximately 3.6 billion yen with stable financial base
  • Group subsidiaries include bases in Shanghai and Europe
  • Listed in 1951 on the Tokyo Stock Exchange Standard Market
  • Total assets approximately 26.6 billion yen, annual sales approximately 13.3 billion yen
  • Mid-sized company with approximately 687 consolidated employees
  • Major shareholders include Oji Holdings, Nippon Paper, and other prominent companies
  • Thorough quality and environmental management through ISO standards
  • Diversified management emphasizing industrial felts

Hidden Connections

  • Major papermaking companies such as Oji Holdings and Nippon Paper are top shareholders
  • Planned 2002 holding company merger with Japan Felt was scrutinized and withdrawn by the Fair Trade Commission
  • Technical strengths as a fiber manufacturer support quality improvements in the paper industry
  • Head office in Bunkyo Ward, Tokyo, located in the heart of the papermaking-related industry
  • One group subsidiary has a U.S. base contributing to overseas expansion
  • ISO certification acquisition results from meeting strict environmental standards in papermaking
  • Fierce market share battle with competitor Japan Felt in papermaking felt sector
  • Unique historical background of applying traditional blanket manufacturing technology to papermaking equipment

Future Outlook

Growth Drivers

  • Expansion of felt demand due to increasing quality improvement needs in the paper industry
  • Growth in multi-functional felt market for industrial applications
  • Increasing demand for environmentally responsive products amid stricter domestic and international environmental regulations
  • Further improvements in production efficiency and quality through AI and automation
  • Strengthening overseas expansion centered on Asian markets
  • Advancement of R&D on new materials and functional fibers
  • Tailwinds from decarbonization trends in the paper industry
  • Deepening of customer-focused services
  • Expansion of global supply network through group subsidiaries
  • Market launch of high value-added products

Strategic Goals

  • Maintain and expand top market share in domestic felt market
  • Increase overseas sales ratio to over 20%
  • Further sophistication of manufacturing processes aimed at reducing environmental impact
  • New market development through development of high-function materials
  • Expansion and maintenance of ISO certifications and increase in sustainable certified products
  • Establishment of smart factory system using AI and IoT
  • Improved management efficiency through strengthened collaboration among group subsidiaries
  • Enhanced customer satisfaction through enriched product customization services
  • Building flexible response system to stricter industry regulations and laws
  • Enhance corporate value through expanded social contribution activities

Business Segments

Papermaking Equipment Supply to Paper Industry

Overview
Primarily provides high-quality felt products used in papermaking machinery.
Competitiveness
Technical expertise specialized in the paper industry and high market share
Customers
  • Papermakers
  • Pulp Manufacturers
  • Small Papermaking Plants
  • Packaging Material Manufacturers
Products
  • Papermaking Felt
  • Shoe Press Belts
  • Special Materials for Papermaking Machines
  • Industrial Felt

Industrial Felt Product Supply

Overview
Provides a variety of felt products tailored to various industrial applications.
Competitiveness
Custom product development capabilities for multiple uses
Customers
  • Automotive Manufacturers
  • Electrical and Electronic Equipment Manufacturers
  • Construction Material Manufacturers
  • Industrial Machinery Manufacturers
Products
  • Insulation and Soundproofing Felt
  • Oil-Resistant Felt
  • Machine Protection Felt

Overseas Market Expansion Support

Overview
Sales through subsidiaries in the United States, Europe, and China.
Competitiveness
Local support leveraging global network
Customers
  • Overseas Papermaking Companies
  • International Logistics Companies
  • Local Agents
Products
  • Papermaking Felt
  • Belt Products

Papermaking Machine Maintenance Services

Overview
Provides services for maintaining and improving papermaking machine performance.
Competitiveness
On-site, long-term support system
Customers
  • Papermaking Plants
  • Equipment Maintenance Companies
Products
  • Maintenance Parts
  • Technical Consulting

Industrial Materials Sales

Overview
Supports material procurement for a wide range of industries.
Competitiveness
Wide product lineup and procurement capabilities
Customers
  • Building Material Suppliers
  • Manufacturers
Products
  • Auxiliary Felt Materials
  • Industrial Fiber Products

R&D and New Material Development

Overview
Promotes joint research and development of advanced materials.
Competitiveness
New product development leveraging technical strengths
Customers
  • University Research Institutions
  • Corporate Research Labs
Products
  • Functional Fiber Products
  • New Felt Materials

Competitive Advantage

Strengths

  • High market share in the papermaking felt market
  • Diverse product lineup for the papermaking industry
  • Sales network through subsidiaries in Japan and overseas
  • Quality management system with ISO certification
  • Technical accumulation based on long history
  • Customer-focused service delivery
  • Flexible product customization capabilities
  • Solid capital base and stable financial position
  • Strong business relationships with major paper industry companies
  • Promotion of environmentally responsive product development
  • Efficient operation of production bases
  • Expertise in quality assurance division
  • Global market expansion capabilities
  • Strengthened collaboration between sales and technical divisions
  • Continuous new product development

Competitive Advantages

  • Duopoly status in Japan's domestic papermaking market with Japan Felt
  • Broad product lineup increases customer options
  • High-function felt technology contributes to improved papermaking quality
  • Geographically deployed in urban areas and major factories to strengthen support
  • Local responsiveness and market development through overseas subsidiaries
  • ISO9001 and 14001 certifications achieve both quality and environmental management
  • High customer trust from long-term relationships
  • Sales and technical service system specialized for the paper industry
  • Integrated manufacturing management from materials to products
  • Market expansion through diverse industrial felts
  • Flexibility in multinational deployment via group subsidiaries
  • Competitive pricing balanced with quality
  • Establishment of proprietary technologies in specific fields
  • Rapid product proposal capabilities tailored to customer needs
  • Proactive efforts to reduce environmental impact

Threats

  • Profit pressure from intensifying price competition
  • Raw material price fluctuation risks
  • Declining demand trend in the paper industry
  • Rise of overseas competitors
  • Cost increases due to stricter environmental regulations
  • Domestic market shrinkage from aging population
  • Decline in competitiveness from delayed technological innovation
  • Supply chain disruption risks
  • Revenue impact from exchange rate fluctuations
  • Market share pressure from new entrants
  • Strengthened antitrust law regulations
  • Factory operation halts due to natural disasters

Innovations

2023: Development of High-Function Composite Felt

Overview
Developed a new composite material felt that balances durability and water absorption.
Impact
Contributes to improved efficiency of papermaking machines and product quality.

2022: Enhanced Heat Resistance for Papermaking Belts

Overview
Improved heat resistance technology for shoe press belts to extend lifespan.
Impact
Contributes to maintenance cost reduction.

2021: Introduction of Environmentally Friendly Manufacturing Processes

Overview
Introduced new processing technology that reduces wastewater and exhaust gas during production.
Impact
Achieved significant reduction in environmental impact.

2024: Joint Research on Functional Fiber Materials Begins

Overview
Started research and development of new durable fiber materials in collaboration with universities.
Impact
Builds foundation for future new product launches.

2023: Production Process Improvements Using Automation and AI

Overview
Achieved optimization of manufacturing management through AI introduction.
Impact
Succeeded in improving production efficiency and quality uniformity.

Sustainability

  • Promotion of environmental management through ISO14001 acquisition
  • Development of low-environmental-impact products for the paper industry
  • Waste recycling rate improvement project
  • Strengthening of energy-saving production systems
  • Collaboration with local communities on environmental conservation activities