Tomoku

Basic Information

Stock Code
3946
Industry
Pulp and Paper
Category Detail
Paper & Paper Products
Prefecture
Tokyo
Establishment Year
May 1949
Listing Year
April 1974
Official Website
https://www.tomoku.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Tokushu Tokai Paper, Oji Holdings, Okayama Paper, Rengo, Furubayashi Paper Co., Dainapack, The Pack, Omura Paper, Kondo, Jecos

Overview

Tomoku is a major company in the pulp, paper, and cardboard manufacturing industry, established in 1949, with a high market share centered in eastern Japan, and also engages in the housing business.

Current Situation

Tomoku recorded consolidated sales of approximately 176.5 billion yen and 3,476 consolidated employees for the fiscal year ended March 2020, holding a high market share in cardboard manufacturing in the eastern Japan region. In its mainstay cardboard and paper container manufacturing businesses, it operates diverse production bases nationwide, establishing a stable supply system. The housing business, centered on its subsidiary Sweden House, handles the design, construction, and sales of wooden houses, bearing a significant portion of the group's overall revenue. It has achieved improvements in manufacturing efficiency and enhancements in product quality through proactive equipment investments and product development. From the perspective of reducing environmental impact, it promotes product development incorporating resource recycling and energy conservation. Even amid the COVID-19 pandemic, it maintained stable demand, and as part of its medium- to long-term growth strategy, it plans to expand sales channels to regions beyond eastern Japan and strengthen its housing business. It is also addressing SDGs and management sustainability, preparing for future fluctuations in the papermaking industry.

Trivia

Interesting Facts

  • Tomoku boasts top-class market share in cardboard in the eastern Japan region.
  • Subsidiary Sweden House uniquely deploys Nordic housing technology in Japan.
  • Has over 80 years of history from its predecessor founded in 1940.
  • Operates more than 15 cardboard manufacturing factories nationwide.
  • Early focus on developing environmentally friendly resource-recycling products.
  • Aggressively invests in old manufacturing equipment to improve production efficiency.
  • Group-wide integrated production from housing to cardboard.
  • Products cater to wide applications from food and pharmaceuticals to housing materials.
  • Major shareholders include major firms like Mitsubishi Corporation, Marubeni, and Mizuho Bank.
  • Highly rated as a processing specialist in Nikkei's papermaking and paper products category.
  • Strength in paper containers and specially processed products beyond cardboard.
  • Transitioning from traditional papermaking to environmentally considerate management.
  • Frequent coverage in Nikkei of personnel changes and dividends.
  • Established position as a major Japanese paper processor.
  • Unique system for completing wooden house material procurement within the group.

Hidden Connections

  • Strong capital and trading ties with major shareholders Mitsubishi Corporation and Marubeni contribute to stable management.
  • Subsidiary Sweden House collaborates with Swedish affiliate Tomoku Hus AB to build an integrated production system.
  • Jointly develops cardboard-related businesses with partner Nippon Paper Industries, realizing synergies.
  • Multiple manufacturing bases spread nationwide supply products tailored to regional needs.
  • Competes with Oji Holdings and Rengo while progressing niche differentiation by field.
  • Advancing diversification strategy beyond papermaking and cardboard through housing business expansion.
  • Also listed on the Sapporo Securities Exchange, addressing regional financial markets.
  • Actively acquires environmental certifications, with CSR-focused stance earning social recognition.

Future Outlook

Growth Drivers

  • Increased demand for eco-packaging due to rising environmental awareness
  • Growing demand for logistics cardboard with EC market expansion
  • Expanding needs for energy-saving and high-performance housing in the housing market
  • Enhanced cost competitiveness through automation and efficiency in manufacturing
  • New market creation through product development responding to stricter environmental regulations
  • Sales channel expansion via nationwide logistics network development
  • Strengthened synergy effects across the group
  • Popularization of resource-recycling products emphasizing sustainability
  • Expansion of building materials sales and renovation business
  • Differentiated product creation through material R&D
  • Expanding possibilities for overseas market product rollout
  • Advanced customer services through IT utilization

Strategic Goals

  • Strengthen product lineup aiming for zero environmental impact
  • Expand cardboard sales share in regions beyond eastern Japan
  • Achieve over 30% sales ratio from housing business
  • 20% productivity improvement through advanced manufacturing automation
  • Achieve 100% sustainable resource procurement rate
  • Publicize and achieve sustainability management indicators
  • 50% reduction in group-wide annual CO2 emissions
  • Accelerate product development responding to diverse customer needs
  • Promote digitalization of products and services
  • Build flexible business structure adaptable to market changes

Business Segments

Cardboard Manufacturing and Processing

Overview
Provides high-quality cardboard products and processing services to diverse industries.
Competitiveness
Wide dispersion of manufacturing bases and advanced processing technology
Customers
  • Food manufacturers
  • Home appliance manufacturers
  • Logistics companies
  • Manufacturers
  • Retailers
  • EC logistics companies
  • Agriculture-related companies
  • Pharmaceutical manufacturers
  • Gift producers
  • Exporters
  • Moving companies
  • Trading companies
Products
  • Various cardboard boxes
  • Specially processed cardboard
  • Gift boxes
  • Export packaging materials
  • Packaging materials
  • Cushioning materials
  • Printed packages
  • Industrial cardboard
  • Water-resistant cardboard
  • Moisture- and insect-resistant boxes
  • Paper container products
  • Integrated pallet boxes
  • Design and processing services
  • Eco-friendly packages
  • Logistics optimization solutions

Housing Design and Construction

Overview
Provides high-quality wooden house design, construction, and after-sales services.
Competitiveness
Fusion of proprietary design technology and Nordic housing expertise
Customers
  • Individual customers
  • Architectural design firms
  • Real estate developers
  • Carpentry shops
  • Housing loan companies
  • Housing equipment companies
  • Insurance companies
  • Local governments
  • General contractors
  • Renovation contractors
Products
  • Custom house design
  • New construction services
  • Energy-saving house design
  • Eco house development
  • Renovation construction
  • Housing materials supply
  • After-sales service
  • Housing consulting
  • Design supervision
  • Building confirmation application agency
  • CAD design support
  • Environmental performance evaluation
  • Housing performance warranty

Paper Container Manufacturing

Overview
Manufactures paper containers for diverse applications and supplies them to various industries.
Competitiveness
Diverse printing and processing technologies
Customers
  • Food packaging companies
  • Cosmetics companies
  • Pharmaceutical companies
  • Daily goods manufacturers
  • Retail chains
  • Beverage manufacturers
  • Confectionery producers
  • Logistics companies
  • Package designers
  • EC operators
Products
  • Food paper containers
  • Cosmetics paper boxes
  • Pharmaceutical paper containers
  • Labels and tags
  • Luxury gift boxes
  • Printed paper containers
  • Logistics paper boxes
  • Recycled material products
  • Specially processed paper containers
  • Design paper boxes

Environmental Solutions

Overview
Provides materials and technological solutions that contribute to reducing environmental impact.
Competitiveness
Industry-leading environmentally considerate technology
Customers
  • Corporate environmental departments
  • Local governments
  • Recycling companies
  • Environmental consultants
  • Manufacturers
  • Distribution companies
  • Construction companies
Products
  • Eco package development
  • Recycled material supply
  • Waste material reuse technology
  • Energy-saving equipment introduction support
  • Environmental impact assessment
  • Sustainability reporting support

Logistics and Transport Materials

Overview
Provides a wide range of packaging materials tailored to logistics site needs.
Competitiveness
Extensive product lineup and responsiveness
Customers
  • Transportation companies
  • Logistics centers
  • EC operators
  • Manufacturer logistics departments
  • Wholesalers
  • Moving companies
Products
  • Transport cardboard
  • Cushioning materials
  • Packaging material sets
  • Moisture- and insect-resistant packages
  • Integrated pallet boxes

Housing Materials Sales

Overview
Supplies high-quality building materials necessary for house construction.
Competitiveness
Quality control through collaboration with in-group manufacturing
Customers
  • Housing construction companies
  • Carpentry shops
  • Renovation contractors
  • Building materials trading companies
Products
  • Wooden house components
  • Insulation materials
  • Waterproof materials
  • Interior materials
  • Exterior materials

Research and Development

Overview
Conducts research and development of new technologies for paper materials and housing building materials.
Competitiveness
Concentrated research facilities and technical capabilities
Customers
  • In-house business divisions
  • Partner companies
  • Universities and research institutions
Products
  • New material development
  • Manufacturing process improvement technology
  • Eco-friendly product research

Construction Services

Overview
Provides construction and management services related to housing construction.
Competitiveness
Regionally rooted service network
Customers
  • Public works
  • Private construction projects
  • Real estate developers
Products
  • On-site construction services
  • Building maintenance and management
  • Aftercare

Materials Procurement and Sales

Overview
Handles stable procurement and sales of materials necessary for manufacturing.
Competitiveness
Long-standing trading partner network
Customers
  • Group companies
  • External companies
  • Building materials retailers
Products
  • Base paper
  • Timber
  • Processing machinery
  • Tools

Import/Export Business

Overview
Supports raw material supply and product sales through international trade.
Competitiveness
Extensive overseas network
Customers
  • Overseas operators
  • Domestic trading companies
  • Trading companies
Products
  • Raw material imports
  • Product exports
  • Overseas sales support

Insurance Agency Business

Overview
Conducts insurance agency operations through subsidiaries.
Competitiveness
Integrated management via group collaboration
Customers
  • Group companies
  • Trading companies
Products
  • Corporate insurance
  • Accident response services

Staffing and Training

Overview
Handles talent development and dispatching both internally and externally.
Competitiveness
Industry-specialized training system
Customers
  • Group business divisions
  • Related companies
Products
  • Manufacturing staff dispatching
  • Technical training programs

Competitive Advantage

Strengths

  • High market share in eastern Japan
  • Stable supply system with multiple production sites
  • Processing technology in cardboard manufacturing
  • Proprietary brand in housing construction
  • Product development focused on reducing environmental impact
  • Integrated manufacturing system across the group
  • Diverse product lineup for various applications
  • Trust and brand power from long history
  • Strong sales network
  • High materials procurement capabilities
  • Robust research and development
  • Environmental sustainability initiatives
  • Risk diversification through diversified businesses
  • Strong connections with diverse industry customers
  • Multifaceted business expansion through subsidiaries

Competitive Advantages

  • Built a stable supply network centered in eastern Japan, enabling rapid response
  • Integrated manufacturing and sales system for cardboard and housing via Sweden House
  • Successfully developed high-function cardboard products emphasizing resource recycling, achieving clear differentiation
  • Possesses product development capabilities and manufacturing technology to meet diverse customer needs
  • Comprehensive proposal capabilities leveraging multiple in-group businesses support competitive superiority
  • Advanced initiatives in products and operations emphasizing sustainability
  • Flexible response to regional needs through factories nationwide
  • High cost competitiveness from efficient manufacturing processes
  • Subsidiary housing brand has established a unique market position
  • Strength in extensive supply track record to diverse industries and customers
  • Early adoption of environmental technologies over competitors, improving corporate image
  • Maintains stable business foundation with long-term capital strength
  • Holds numerous patented technologies and know-how, establishing technological superiority
  • Successful balance of sustainable manufacturing and environmental impact reduction
  • Strengthened corporate structure through business reorganization and subsidiary integration

Threats

  • Raw material price fluctuations affecting costs
  • Potential manufacturing cost increases from stricter environmental regulations
  • Intensifying competition in domestic papermaking and cardboard industry
  • Profit pressure from rising logistics costs
  • Risk of shrinking demand due to population decline and sluggish consumption
  • Market share erosion by new entrants
  • Intensified price competition from increased imports of overseas products
  • Risk of factory operation halts due to natural disasters
  • Investment restraint due to economic uncertainty
  • Subsidiary revenue deterioration from housing market downturn
  • Decline in competitiveness from lagging technological progress
  • Impact of exchange rate fluctuations on raw material procurement costs

Innovations

2023: Enhanced Development of Recycled Cardboard Materials

Overview
Introduced new materials balancing high recyclability and durability to reduce environmental impact.
Impact
Improved product differentiation and environmental responsiveness

2022: Promotion of Manufacturing Line Automation

Overview
Implemented automation of cardboard manufacturing processes using the latest robot technology.
Impact
10% improvement in production efficiency and labor reduction

2024: Development of Energy-Saving Housing Design Technology

Overview
Subsidiary Sweden House introduced new design technology for high-insulation, energy-saving houses.
Impact
Enhanced competitiveness in housing sales and increased customer satisfaction

2021: Development of Low-Environmental-Impact Packaging Materials

Overview
Began prototyping and market launch of cardboard products using biodegradable materials.
Impact
Expansion of environmentally responsive product lineup

2023: Introduction of Logistics Optimization AI System

Overview
Utilized AI in logistics processes to optimize transport efficiency and inventory management.
Impact
5% reduction in logistics costs and improved service quality

2020: Cardboard Strength Improvement Technology Development

Overview
Achieved both lightweighting and durability through proprietary processing.
Impact
Contributes to product competitiveness and transport cost reduction

2024: Improvement of Online Housing Design Service

Overview
Developed a system allowing customers to easily create design plans on the web.
Impact
Improved customer experience and increased order rates

2022: Expansion of Environmental Certifications

Overview
Obtained FSC and carbon footprint certifications for product lineup.
Impact
Strengthened environmental responsiveness and brand image

2021: Launch of Small Packaging Materials for New Markets

Overview
Developed and began selling compact, lightweight packaging materials for EC logistics.
Impact
Entry into growing markets

2020: Update of Environmentally Considerate Factory Equipment

Overview
Updated to energy-saving production equipment, achieving CO2 emission reductions.
Impact
Reduced environmental impact and costs

Sustainability

  • Maintaining waste recycling rate over 90%
  • Expansion of FSC-certified products
  • Promotion of factory energy conservation
  • Development and promotion of biodegradable packaging materials
  • Collaboration with local communities on environmental conservation activities
  • Setting and achieving CO2 emission reduction targets
  • Introduction of employee environmental education programs
  • Supply chain management for reducing environmental impact
  • Strengthening sustainable resource procurement
  • Promotion of eco-driving and transport efficiency improvements
  • Expansion of green power usage
  • Ongoing reduction of plastic usage