Central Glass

Basic Information

Stock Code
4044
Industry
Chemicals
Category Detail
Manufacturing Machinery & Electrical Equipment
Prefecture
Tokyo
Establishment Year
October 1936
Listing Year
May 1949
Official Website
https://www.cgco.co.jp/
TSE Information
TSE Information
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Overview

Central Glass is a chemical and glass product manufacturer founded in 1936, holding a top-3 share in the domestic glass market, centered on its chemical products business with high technological capabilities and industry standing.

Current Situation

Central Glass recorded consolidated sales of approximately 190.7 billion yen and operating profit of about 4.06 billion yen in the fiscal year ended March 2021, building a solid management foundation. Its core businesses are chemical products and glass products, with the chemical products business serving as the main profit pillar. It has multiple production sites domestically and internationally, with factories in Matsusaka and Ube achieving stable production. The company focuses on technological innovation, developing heat-resistant tempered glass and semiconductor photoresists. In 2018, it publicly disclosed a quality issue with some tempered glass products and responded promptly to maintain customer trust. It is advancing sustainability initiatives, including reducing environmental impact and strengthening safety management. Moving forward, it aims to expand in electronic materials and pharmaceutical intermediates, as well as overseas markets, promoting high-value-added product development and global expansion toward 2030. Recent news includes the establishment of a new research building in Yamaguchi to improve R&D efficiency.

Trivia

Interesting Facts

  • Founded in 1936 as Ube Soda Industry, a company with a long history.
  • Holds top-3 market share in Japan's glass industry.
  • The softball team at the Ube factory is famous as a national powerhouse.
  • In 2018, voluntarily disclosed an issue with tempered glass quality testing, drawing attention.
  • Chemical products business is the profit pillar, supporting diversified operations.
  • Strong in inorganic chemical products rather than petrochemicals.
  • Subsidiary Central Glass Fiber specializes in glass fiber products.
  • Head office in Chiyoda-ku, Tokyo, but main factory in Ube, Yamaguchi.
  • Known for long-term financial stability and prudent management.
  • Holds numerous patents in heat-resistant tempered glass manufacturing technology.
  • Leading domestic manufacturer of photoresist, one of semiconductor materials.
  • Early adopter of developing environmentally considerate products in the industry.
  • Balancing electronic materials and fertilizers as part of diversification strategy.
  • Historical involvement in sodium hydroxide production since founding.
  • Development of insulated glass units is highly evaluated in the energy-saving housing market.

Hidden Connections

  • Founder has deep ties to Ube Industries founder, contributing to regional industry development.
  • Former executives have connections to politicians, giving strong influence in the industry.
  • Central Seikei and Central Glass Sales are wholly-owned subsidiaries.
  • Likely transactions or technical exchanges with Nisshinbo in chemical fiber field.
  • PFAS-free photoresist development is a symbolic project for environmental regulation response.
  • Has partnerships with global companies as a worldwide electronic materials supplier.
  • Implements multiple environmental conservation programs in collaboration with local communities.
  • Double-glazed glass technology aligns with strengthening energy-saving standards in domestic architectural market.

Future Outlook

Growth Drivers

  • Increasing demand accompanying growth in semiconductor and electronic materials markets
  • Expansion of demand for environmentally considerate products due to stricter regulations
  • Expansion of energy-saving glass demand in domestic and international construction markets
  • Increase in safe, high-function glass in automotive industry
  • Growing fertilizer demand for enhancing sustainability in agriculture

Strategic Goals

  • Expand sales ratio of chemical products and electronic materials businesses beyond current levels
  • Raise proportion of environmentally considerate products in sales to over 50%
  • Strengthen overseas business expansion, aiming for over 30% of total sales
  • Increase R&D investment to establish leadership in advanced materials development
  • Promote sustainability management to enhance corporate value

Business Segments

Electronic Materials Business

Overview
Supplies electronic materials for semiconductors and flat panels, supporting precision processes.
Competitiveness
High purity control and stable supply system
Customers
  • Semiconductor manufacturers
  • Display manufacturers
  • Electronic component makers
  • Research institutions
Products
  • High-purity hydrofluoric acid
  • Photoresist
  • Optical films
  • Semiconductor chemicals

Chemical Products Business

Overview
Develops and produces diverse chemical products, supporting industry and agriculture.
Competitiveness
Wide product lineup and technological strength
Customers
  • Chemical manufacturers
  • Pharmaceutical manufacturers
  • Agricultural companies
  • R&D institutions
Products
  • Inorganic chemicals
  • Pharmaceutical intermediates
  • Agricultural fertilizers
  • Functional chemicals

Glass Products Business

Overview
Provides high-function glass products for construction and automotive industries.
Competitiveness
High-quality manufacturing technology and diverse product range
Customers
  • Construction material manufacturers
  • Automotive manufacturers
  • Precision equipment makers
  • Construction companies
Products
  • Tempered glass
  • Heat-resistant glass
  • Automotive glass
  • Insulated glass units

Glass Fiber Business

Overview
Supplies versatile glass fiber products with high heat resistance and strength.
Competitiveness
High-performance fiber technology
Customers
  • Composite material manufacturers
  • Automotive parts suppliers
  • Electronic device makers
  • Civil engineering and construction
Products
  • Glass fiber fabric
  • Chopped strands
  • Glass fiber
  • Reinforcing materials

Manufacturing Equipment and Maintenance

Overview
Provides maintenance for manufacturing equipment and quality control services to support stable production.
Competitiveness
Years of manufacturing know-how and technical support
Customers
  • Own manufacturing plants
  • Other chemical manufacturers
  • Electronic materials manufacturers
  • Maintenance companies
Products
  • Manufacturing equipment maintenance
  • Quality control services
  • Environmental management support
  • Product inspection equipment

R&D Support

Overview
Offers research support services for material development and new technology creation.
Competitiveness
Advanced technical support based on specialized knowledge
Customers
  • Industry-academia collaboration institutions
  • Chemical research labs
  • Universities
  • Technology development companies
Products
  • Material analysis services
  • Synthesis technology provision
  • Prototype support
  • Technical consulting

Agricultural Materials Business

Overview
Provides fertilizers and materials to support sustainable agriculture.
Competitiveness
Products tailored to a wide range of agricultural needs
Customers
  • Farmers
  • Agricultural cooperatives
  • Agricultural material retailers
  • Agrochemical and fertilizer manufacturers
Products
  • Ammonium sulfate fertilizer
  • Compound fertilizer
  • Agricultural materials
  • Fertilizer additives

Construction Materials Business

Overview
Supplies architectural glass products that balance energy savings and safety.
Competitiveness
Advanced energy-saving technology and safety standard compliance
Customers
  • Architectural design firms
  • Home builders
  • Real estate developers
  • Building material retailers
Products
  • Insulated double-glazed glass
  • Heat-shielding films
  • Safety security glass
  • Energy-saving building materials

Environmental Business

Overview
Provides chemical products and services that reduce environmental impact.
Competitiveness
Proven track record in technologies compliant with environmental regulations
Customers
  • Manufacturers
  • Water and sewage operators
  • Environmental conservation groups
  • Local governments
Products
  • Wastewater treatment chemicals
  • Deodorizers
  • Environmental survey services
  • Recycling technology

Automotive Parts Business

Overview
Provides safe and functional automotive glass parts, contributing to vehicle quality improvement.
Competitiveness
High-quality heat-resistant and tempered technology
Customers
  • Automotive manufacturers
  • Parts suppliers
  • Secondary processors
  • Repair and maintenance shops
Products
  • Automotive windshields
  • Side glass
  • Rear glass
  • Special glass parts

Protective Materials for Electronic Devices Business

Overview
Manufactures and sells high-quality films specialized for protecting electronic device surfaces.
Competitiveness
Balance of excellent durability and transparency
Customers
  • Electronic device manufacturers
  • Smartphone accessory retailers
  • Electronic parts trading companies
  • Telecom equipment sellers
Products
  • Smartphone protective glass
  • Tablet protective films
  • Electronic component protective films
  • High-function films

Special Purpose Glass Business

Overview
Provides high-performance special glass for cutting-edge technologies.
Competitiveness
Advanced processing technology and quality control
Customers
  • Optical equipment manufacturers
  • Chemical plants
  • Research institutions
  • Precision industries
Products
  • Optical special glass
  • Chemical-resistant glass
  • Heat-resistant glass
  • Precision-processed glass

Competitive Advantage

Strengths

  • High market share and brand power within the industry
  • Diversified business combining chemicals and glass
  • Stable production system with multiple domestic sites
  • Profit base from chemical products business backed by advanced technology
  • Diverse customer base and trading relationships
  • Development capabilities for advanced products like heat-resistant tempered glass
  • Active investment in R&D and technological accumulation
  • Environmentally considerate products considering sustainability
  • Provision of high-purity chemicals in semiconductor materials
  • Quality management capabilities based on long experience
  • Strong management team and stable financial base
  • Extensive sales channel network
  • Reliable customer support system
  • Ability to respond to domestic and international industry trends
  • Capability to meet diverse industry needs

Competitive Advantages

  • Able to create unique products by fusing glass and chemicals
  • Strong proposal power based on No. 3 domestic glass share
  • Stable profit securing through chemical products business
  • High-purity products for semiconductors as strength in electronic materials
  • Flexible production adjustments via multiple factory collaboration
  • High reliability due to advanced quality control system
  • New material development through collaboration with R&D organization
  • Supply channels and customer base across wide industries
  • Improving social evaluation with environmentally responsive products
  • Technological superiority in high-function glass products
  • Flexible customer response and customization proposals possible
  • Strong trading relationships with major manufacturers domestically and abroad
  • Enhanced competitiveness through capital investment in equipment
  • Robust sales network and brand recognition
  • Product development capabilities based on extensive know-how

Threats

  • Risk of fluctuations in global raw material prices
  • Intensifying price competition with overseas manufacturers
  • Increased production costs due to stricter environmental regulations
  • Risk of falling behind in technological innovation speed
  • Maturing domestic market and declining demand trend
  • Impact of natural disasters on factories and logistics
  • Business uncertainty from overseas political risks
  • Emergence of new entrants or alternative materials
  • Profit margin fluctuations due to exchange rate changes
  • Concerns over productivity decline from labor shortages
  • Damage to corporate image from quality issues
  • Disruptions in global supply chains

Innovations

2023: Opened New Research Building in Yamaguchi

Overview
Established a state-of-the-art research building in Yamaguchi to strengthen R&D activities.
Impact
Improved development efficiency and accelerated new material creation

2022: Developed PFAS-Free Photoresist

Overview
Developed semiconductor photoresist without PFAS to reduce environmental impact.
Impact
Securing new markets and strengthening environmental regulation compliance

2021: Expanded High-Purity Hydrofluoric Acid Production Capacity

Overview
Expanded production lines for high-purity hydrofluoric acid in response to growing semiconductor demand.
Impact
20% increase in production capacity and stable supply of semiconductor materials

2024: Improved Heat-Resistant Tempered Glass Manufacturing Technology

Overview
Optimized heat-soak process to enhance durability.
Impact
Improved product reliability and market share expansion

2023: Developed Environmentally Friendly Fertilizer

Overview
Launched fertilizer that suppresses environmental impact while enabling effective nutrient supply.
Impact
Contributes to promoting sustainability in agriculture

2022: Improved Heat Resistance of Glass Fiber Materials

Overview
Developed technology improving heat resistance by 20% through new manufacturing process.
Impact
Expected expansion in adoption for automotive parts applications

Sustainability

  • Promoting waste reduction and recycling rate improvement
  • Elimination of hazardous substance PFAS and commercialization of eco-friendly products
  • CO2 reduction through introduction of energy-saving equipment at factories
  • Establishment and implementation of sustainable procurement standards
  • Environmental protection activities in collaboration with local communities