Tosoh

Basic Information

Stock Code
4042
Industry
Chemicals
Category Detail
Chemicals & Chemical Products
Prefecture
Tokyo
Establishment Year
February 1935
Listing Year
May 1949
Official Website
https://www.tosoh.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Asahi Kasei, Resonac Holdings, Sumitomo Chemical, Shin-Etsu Chemical, Mitsui Chemicals, Mitsubishi Chemical Group, UBE

Overview

Tosoh is a leading comprehensive chemical manufacturer in Japan, founded in 1935. Centered on PVC and caustic soda, it boasts high market shares both domestically and internationally in petrochemicals and functional products.

Current Situation

Tosoh recorded consolidated revenue of approximately 1.0643 trillion yen and operating profit of 74.6 billion yen for the fiscal year ended March 2023. It possesses one of Asia's largest PVC and soda production capacities. In addition to its core vinyl-isocyanate chain business, it operates petrochemical and functional products businesses, establishing a diversified business structure. The Nanyo Plant is Japan's largest chemical factory and plays a central role in the Shunan Complex. In R&D, it focuses on inorganic and organic fine chemicals as well as measurement and diagnostic products, strengthening competitiveness in new materials. Following a 2011 explosion accident at the Nanyo Plant, it has thoroughly implemented safety measures, advancing environmental load reduction and sustainable production systems. Toward 2030, it aims to advance its businesses and expand globally, increasing investments in environmental technologies and material innovations. It seeks to enhance sustainable corporate value by balancing management stability and growth.

Trivia

Interesting Facts

  • The Nanyo Plant boasts the largest single-factory site area in Japan.
  • Founder Tokuzo Iwase started the company independently from Japan Carbide Industry.
  • Invested billions of yen in facility reconstruction following the 2011 explosion accident.
  • Tosoh's PVC monomer production accounts for about 30% of Japan's domestic total.
  • Tosoh is unrelated to Tosoh Corporation (interior products).
  • Head office located in Yaesu Central Tower in central Tokyo.
  • Holds equity-method affiliates with multiple major chemical manufacturers.
  • Registered head office in Shunan City, Yamaguchi Prefecture, but head office in urban Tokyo.
  • Handles diverse chemical fields including measurement and diagnostic products.
  • Council member of Global Compact Japan Network.

Hidden Connections

  • Presidents have long been alumni of Nihon Kangyo Bank (now Mizuho Bank).
  • Close relationships with Mitsui Chemicals, Mitsubishi Chemical, etc., in the PVC business.
  • Subsidiary Organo holds top share in water treatment equipment.
  • Tosoh's accident investigation committee was internally established with emphasis on transparency.
  • Maintains affiliate or partnership relations with many major chemical manufacturers.
  • Highly regarded as one of the Nikkei 400 Index constituents.
  • Commits to 50% total payout ratio, focusing on shareholder returns.
  • Actively engages in regional cultural exchange through naming rights acquisitions.

Future Outlook

Growth Drivers

  • Expanding demand for high-functionality chemicals
  • Increasing demand for chemical materials in Asia
  • Investments in environmental technologies and regulatory compliance
  • Strengthening new material development through technological innovation
  • Optimization of global logistics networks
  • Gaining customer trust through stable supply systems
  • Building sustainable production systems
  • Advancing digital transformation
  • Enhancing R&D and intellectual property utilization
  • Risk diversification through diverse business portfolio
  • Strengthening supply chain resilience
  • Promoting coexistence with local communities

Strategic Goals

  • Reduce CO2 emissions by 50% from current levels
  • Achieve 30% sales ratio of green chemical products
  • Strengthen business foundations in markets worldwide
  • Expand lineup of safety- and environment-compatible products
  • Promote business diversification through technological innovation
  • Improve productivity through digital technology utilization
  • Global talent development and organizational strengthening
  • Business development with global environmental contributions in mind
  • Maintain 50% shareholder payout ratio
  • Enhance coexistence with local communities and CSR activities

Business Segments

Basic Chemical Raw Materials Business

Overview
Supplies a wide range of basic chemical raw materials, supporting raw materials for diverse industries.
Competitiveness
High production capacity and stable supply system
Customers
  • Chemical Manufacturers
  • Papermaking Manufacturers
  • Textile Industry
  • Pharmaceutical Manufacturers
  • Agrochemical Companies
  • Paint Manufacturers
  • Household Goods Manufacturers
  • Water Treatment Operators
  • Automotive Manufacturers
  • Electronic Component Manufacturers
Products
  • Caustic Soda
  • Chlorine
  • Vinyl Chloride Monomer (VCM)
  • Ammonia
  • Sulfuric Acid
  • Olefins
  • Polyethylene
  • Synthetic Rubber
  • ABS Resin
  • Polyurethane Raw Materials

Functional Products Business

Overview
Develops and provides advanced materials and functional chemicals to meet high value-added markets.
Competitiveness
R&D capabilities and diverse product lineup
Customers
  • Electronics Manufacturers
  • Semiconductor Equipment Manufacturers
  • Medical Equipment Manufacturers
  • Environmental Companies
  • Cosmetic Manufacturers
  • Construction Materials Manufacturers
  • Automotive Parts Manufacturers
  • Measurement and Testing Equipment Manufacturers
  • Chemical Manufacturers
  • Research Institutions
Products
  • Sputtering Targets
  • Electrolytic Manganese Dioxide
  • Zirconia Ceramics
  • High-Purity Quartz Glass
  • Flame Retardants
  • Rust Preventives
  • Measurement and Diagnostic Products
  • Fine Chemical Raw Materials
  • Water Treatment Equipment
  • Environmental Equipment

Petrochemical Business

Overview
Manufactures petrochemical raw materials and various synthetic resin products, supporting multiple industries.
Competitiveness
Large-scale production facilities and integrated technological capabilities
Customers
  • Plastic Manufacturers
  • Automotive Industry
  • Packaging Materials Manufacturers
  • Construction Materials Suppliers
  • Household Goods Manufacturers
  • Textile Industry
  • Medical Supplies Manufacturers
  • Electronic Materials Manufacturers
  • Energy-Related Companies
  • Logistics Operators
Products
  • Olefins
  • Polyethylene
  • Polypropylene
  • Chloroprene Rubber
  • Polyurethane
  • Ethylene Derivatives
  • Synthetic Resins
  • Polymer Raw Materials
  • Specialty Plastics
  • Chemical Industrial Chemicals

Environmental Solutions Business

Overview
Provides advanced water treatment and environmental technologies to reduce industrial environmental impact.
Competitiveness
Cutting-edge membrane technology and engineering expertise
Customers
  • Factories and Plants
  • Public Facilities
  • Water Treatment Plant Operators
  • Wastewater Treatment Operators
  • Environmental Consultants
  • Local Governments
  • Manufacturing Industry
  • Infrastructure Companies
  • Recycling Operators
  • Food Processing Plants
Products
  • Wastewater Treatment Equipment
  • Membrane Separation Technology
  • Activated Sludge Equipment
  • Environmental Monitoring Equipment
  • Water Treatment Chemicals
  • Recycling Technology
  • Deodorization Equipment
  • Energy-Saving Equipment
  • Environmental Diagnostic Services
  • Technical Consulting

Logistics and Specialized Transportation Business

Overview
Nationwide deployment of safe and efficient logistics services specialized in chemical products.
Competitiveness
Staff with extensive expertise and robust safety management system
Customers
  • Chemical Manufacturers
  • Manufacturing Industry
  • Distribution Companies
  • Trading Companies
  • Pharmaceutical Industry
  • Food Industry
  • Construction Industry
  • Retail Industry
  • Machinery Manufacturers
  • Automotive Industry
Products
  • Chemical Products Transportation Services
  • Hazardous Materials Transportation
  • Warehouse Management
  • Logistics Consulting
  • Dedicated Vehicle Operations
  • International Logistics
  • Delivery Management Systems
  • Warehouse Optimization Services
  • Safety and Compliance Services
  • Customer Support Services

Product Development and Materials Research Services

Overview
Accelerates customer technologies through materials evaluation and development support from advanced laboratories.
Competitiveness
High technical expertise across multiple fields
Customers
  • Chemical Industry
  • Manufacturing Industry
  • Universities and Research Institutions
  • Materials Development Companies
  • New Materials Companies
  • Medical Equipment Manufacturers
  • Electronic Component Manufacturers
  • Electronics Industry
  • Environmental Technology Developers
  • New Business Development Companies
Products
  • Inorganic Materials Laboratory Services
  • Polymer Materials Testing
  • Functional Materials Evaluation
  • Life Sciences Research Collaboration
  • Materials Analysis Technology Support
  • Ceramics Materials Development
  • Chemical Properties Verification
  • Industry-Academia Collaboration Development Support
  • Environmental Materials Research
  • Advanced Technology Simulation

Pharmaceutical and Cosmetic-Related Materials Supply

Overview
Stably supplies high-quality raw materials for pharmaceuticals and cosmetics, contributing to enhanced product value.
Competitiveness
Strict quality control and R&D capabilities
Customers
  • Pharmaceutical Companies
  • Cosmetic Manufacturers
  • Health Food Companies
  • Medical Equipment Manufacturers
  • Biotechnology Companies
  • Research Institutions
  • Health Industry
  • Supplement Manufacturers
  • Medical Materials Developers
  • Raw Material Suppliers
Products
  • Fine Chemical Raw Materials
  • Zirconia Powder
  • High-Purity Chemicals
  • Functional Additives
  • Pharmaceutical Intermediates
  • Cosmetic Raw Materials
  • Biocompatible Materials
  • Inspection Reagents
  • Bio-Related Compounds
  • Safety Testing Materials

Synthetic Resin Manufacturing Business

Overview
Manufactures diverse synthetic resin products and supplies them widely to downstream industries.
Competitiveness
High-quality products and stable manufacturing technology
Customers
  • Packaging Materials Manufacturers
  • Furniture Manufacturers
  • Construction Materials Suppliers
  • Home Appliance Manufacturers
  • Toy Manufacturers
  • Automotive Parts Manufacturing
  • Home Goods Manufacturers
  • Electronic Device Manufacturers
  • Construction Industry
  • Retail Industry
Products
  • Polyethylene
  • Polypropylene
  • Resin Powders
  • Liquid Resins
  • ABS Resin
  • Specialty Synthetic Resins
  • Urethane Resins
  • Molding Materials
  • Inorganic-Filled Resins
  • Transparent Resin Products

Materials Supply for Automotive Industry

Overview
Provides functional materials for the automotive industry, contributing to durability and performance improvements.
Competitiveness
Versatile material compatibility and technological development capabilities
Customers
  • Automotive Manufacturers
  • Automotive Parts Manufacturers
  • Transportation Equipment Manufacturers
  • Industrial Machinery Manufacturers
  • Electrical Component Manufacturers
  • Adhesive Manufacturers
  • Painting and Coating Operators
  • Rubber Products Manufacturers
  • R&D Companies
  • Environmental Equipment Manufacturers
Products
  • Polyurethane Raw Materials
  • Synthetic Rubber
  • Functional Additives
  • Heat-Resistant Resin Materials
  • Adhesive Raw Materials
  • Rust Preventives
  • High-Functionality Plastics
  • Vinyl Chloride Resin
  • Engineering Plastics
  • Surface Treatment Materials

Industrial Chemicals Development and Supply

Overview
Provides high-performance industrial chemicals to various industries, supporting production efficiency and product quality.
Competitiveness
Extensive product range and customization capabilities
Customers
  • Steel Industry
  • Chemical Industry
  • Automotive Industry
  • Electronics Industry
  • Construction Industry
  • Agrochemicals
  • Papermaking Industry
  • Food Processing Industry
  • Environmental Companies
  • Water Treatment Operators
Products
  • Rust Preventives
  • Flame Retardants
  • Cleaners
  • Various Additives
  • Industrial Chemicals
  • Disinfectants
  • Water Treatment Chemicals
  • Catalysts
  • Surface Treatment Chemicals
  • Corrosion Inhibitors

Competitive Advantage

Strengths

  • One of Asia's largest PVC and caustic soda production capacities
  • Diversified business portfolio
  • High market shares domestically and internationally
  • Advanced R&D and technological capabilities
  • Extensive network of subsidiaries and affiliates
  • Long-term stable management foundation
  • Large-scale production facilities and in-house power generation
  • Global sales and logistics network
  • Strong capital base and financial position
  • Customer trust through high-quality products
  • Extensive product lines and customization capabilities
  • Thorough safety management system
  • Ongoing transactions with a broad customer base
  • Proactive efforts toward sustainability
  • Collaborations with major domestic chemical manufacturers

Competitive Advantages

  • Unique production scale advantages in Japan and Asia markets
  • High value-added product development through technological innovation
  • Comprehensive capabilities to supply a wide range of chemical products
  • Strong resilience to volatile markets through solid management
  • Broad network and high-efficiency logistics systems
  • Differentiation from competitors in environmentally friendly products and safety measures
  • Risk diversification enabled by product diversification
  • Long-cultivated customer base and trust relationships
  • Product enhancement through powerful R&D organization
  • Synergies from well-integrated group companies
  • Cost competitiveness from energy self-sufficiency
  • Flexible product deployment in response to market needs
  • Aggressive overseas expansion to capture growth markets
  • Product lineup tailored to diverse industries
  • Social trust gained in safety and environmental aspects

Threats

  • Increased production costs due to stricter environmental regulations
  • Risk of raw material price fluctuations
  • Price competition from domestic and international rivals
  • Risk of fluctuations in chemical product supply-demand balance
  • Risk of production halts from accidents or disasters
  • Profit pressure from exchange rate fluctuations
  • Brand damage from environmental or safety accidents
  • Market penetration of new technologies or substitutes
  • Impact on overseas operations from geopolitical risks
  • Risk of supply chain disruptions
  • Labor shortages and talent acquisition challenges
  • Risk of technology leakage or intellectual property infringement

Innovations

2024: Introduction of New Environmentally Friendly PVC Production Technology

Overview
Introduced next-generation vinyl chloride production equipment that significantly reduces environmental impact.
Impact
Achieved 20% reduction in CO2 emissions and improved production efficiency.

2023: High-Performance Functional Ceramics Materials

Overview
Developed new materials enhancing strength and heat resistance of zirconia-based ceramics.
Impact
Contributes to market share expansion in electronic components.

2022: Commercialization of Membrane Separation Technology for Water Treatment

Overview
Launched sales of industrial wastewater treatment equipment utilizing advanced membrane technology.
Impact
Contributes to customers' environmental load reduction and cost savings.

2021: Upgrade of In-House Power Generation Equipment for Green Energy

Overview
Renovated part of in-house power generation facilities to renewable energy compatible.
Impact
Achieved reductions in energy costs and environmental impact.

2020: New Manufacturing Method for High-Functionality Polyurethane Raw Materials

Overview
Succeeded in innovating manufacturing method for polyurethane raw materials with superior flexibility and durability.
Impact
Promotes expanded adoption in automotive parts field.

Sustainability

  • Setting and pursuing CO2 emission reduction targets
  • Promoting increased use of renewable energy
  • Continuous improvement in waste recycling rates
  • Strengthening safety management systems and employee training
  • Advancing environmental conservation activities in collaboration with local communities
  • Enhancing efficient water resource use and water quality preservation
  • Managing environmental and social risks in the supply chain
  • Reducing environmental impact across the entire product lifecycle
  • Internal initiatives for human rights respect and diversity promotion
  • Sustainable product development through innovation
  • Improving transparency in environmental reporting and communication
  • Adapting to global standards and ensuring compliance