Kanto Denka Kogyo
Basic Information
- Stock Code
- 4047
- Industry
- Chemicals
- Category Detail
- Manufacturing Machinery & Electrical Equipment
- Prefecture
- Tokyo
- Establishment Year
- September 1938
- Listing Year
- October 1961
- Official Website
- https://www.kantodenka.co.jp/
- TSE Information
- TSE Information
- Yahoo! Finance
- Yahoo! Finance
- Other Companies
- Nippon Kodoshi Corporation, Central Glass, TANAKA Chemical Corporation, Powdertech, Mitsui Mining & Smelting, Nitto Koki, Double Scope, GS Yuasa Corporation, Leader Electronics, Furukawa Battery, FDK
Overview
Kanto Denka Kogyo is a mid-sized chemical company founded in 1938, with specialty gases and chemicals as its main products, and is a competitive manufacturer belonging to the Furukawa Group.
Current Situation
Kanto Denka Kogyo recorded consolidated sales of 55.2 billion yen and net assets of 44.1 billion yen in the fiscal year ended March 2019, maintaining a stable management base. It demonstrates high technological capabilities in its core specialty gas and battery materials businesses, establishing a solid position in both domestic and international markets. As a member of the Furukawa Group, it focuses on research and development, promoting the development of environmentally friendly products and energy-saving technologies. It has built an efficient production system with multiple factories in Shibukawa and Mizushima, as well as a comprehensive development center, thoroughly managing quality and delivery times. It is also actively advancing into new fields such as EV battery recycling to strengthen sustainability. Moving forward, it aims for growth through technological innovation in high-performance materials and expansion of overseas operations. It also promotes talent development and regional collaboration activities, conducting management that considers social responsibility. Within the industry, its specialized chemical product technology is a strength compared to competitors, and it focuses on strengthening its product lineup to meet increasing demand for materials.
Trivia
Interesting Facts
- Established in 1938, it is a long-established chemical manufacturer.
- Strong technological collaboration as a member of the Furukawa Group.
- Major specialty gas producer with strengths in semiconductor material supply.
- Early launch of EV battery recycling business.
- Multiple production sites in Shibukawa and Mizushima.
- Diversified management through in-house production of wide-ranging chemicals.
- Operates numerous affiliates domestically and internationally.
- Regularly holds specialized technical training for employees.
- Actively introduces environmentally considerate production lines.
- Expanding market share in electrolytic base materials.
- Started with capital of 4 million yen at founding.
- Selected as a constituent of the Nikkei JPX 400 Index.
- Listed on the Tokyo Stock Exchange Prime Market.
- Major shareholders include Japan Trustee Services Bank and Asahi Life.
- Has its own 'Kanden Series' brand.
Hidden Connections
- Close collaboration with same-group companies such as Furukawa Electric and Nippon Zeon.
- Broad relationships with the automotive industry through supply of EV battery materials.
- Specialty gas products are key suppliers to the semiconductor industry.
- Recycling business involves joint projects with environmental policy promotion companies.
- Shibukawa factory houses a comprehensive development center as an R&D hub.
- Asahi Life Insurance supports stable management as a major shareholder.
- Competitive and collaborative relationships with Powdertech and Leader Electronics.
- Member of multiple industry associations in various chemical markets domestically and internationally.
Future Outlook
Growth Drivers
- Increasing demand for high-performance battery materials due to EV market expansion
- Expansion of specialty gas demand from semiconductor industry growth
- Expansion of recycling business due to rising environmental awareness
- Efficiency improvement and productivity enhancement of global manufacturing sites
- Preempting market needs through new chemical development
- Expansion of product lines to comply with stricter environmental regulations
- Innovation in production and quality control using digital technology
- Business strengthening through synergy within Furukawa Group
- Active promotion of overseas markets, especially in Asia
- Cost reduction through introduction of energy-saving technology
- Strengthening long-term partnerships with customers
- Enhancing corporate competitiveness through talent development and work-style reforms
Strategic Goals
- Expand EV-related materials sales ratio to over 40%
- Achieve 50% of sales from sustainable products
- Aim for 30% reduction in CO2 emissions
- Complete integrated optimization of domestic and international production sites
- Increase R&D expenses and launch 5 or more new products annually
- Double supply volume of recycling materials
- Improve overseas sales ratio to 35%
- Reduce manufacturing costs by 10% through digitalization and business efficiency
- New business development leveraging group synergy
- Build workplace environment promoting diversity and inclusion
Business Segments
Specialty Gas Business
- Overview
- Provides high-precision, high-purity specialty gas products to support industrial foundations.
- Competitiveness
- Furukawa Group's technological strength and stable supply system
- Customers
-
- Semiconductor manufacturers
- Electronic component manufacturers
- Chemical plants
- Industrial gas sales companies
- Research institutions
- Manufacturing equipment suppliers
- Automotive parts manufacturers
- Pharmaceutical manufacturers
- Renewable energy companies
- Recycling companies
- Products
-
- High-purity chlorine gas
- Fluorine-based gases
- Rare gases (argon, helium, etc.)
- Specialty gases for electronic materials
- Gases for electrolysis
- Environmentally friendly gases
- Gases for lithium-ion batteries
Basic and Precision Chemicals Business
- Overview
- Manufactures basic chemicals and high-function precision chemicals for a wide range of industrial uses.
- Competitiveness
- High-quality product lineup backed by years of know-how
- Customers
-
- Chemical manufacturers
- Pharmaceutical companies
- Agrochemical manufacturers
- Electronic materials manufacturers
- Paint and coating manufacturers
- Automotive parts companies
- Food additive manufacturers
- Environmental companies
- Industrial chemical trading companies
- Products
-
- Caustic soda
- Liquid ammonia
- Sulfuric acid and various acids
- Rust inhibitors
- Plating chemicals
- Flame retardants
- Various organic solvents
- Functional additives
Battery Materials Business
- Overview
- Focuses on development and supply of high-performance battery materials for the EV market.
- Competitiveness
- Precision materials technology and recycling collaboration system
- Customers
-
- Battery manufacturers
- Automotive manufacturers
- Electronic device manufacturers
- Renewable energy companies
- Recycling companies
- R&D institutions
- Products
-
- Lithium-ion battery cathode materials
- Nickel-metal hydride battery materials
- High-performance automotive battery materials
- Battery recycling materials
- Electrolytic base materials
Iron-Based Products Business
- Overview
- Supplies high-quality iron and steel products to diverse industries.
- Competitiveness
- Efficiency and stability of production system
- Customers
-
- Building materials manufacturers
- Automotive parts manufacturers
- Industrial machinery manufacturers
- Logistics and transportation companies
- Metal processing companies
- Products
-
- Steel plates
- Iron powder
- Steel components
- Special steel products
Organic Solvents and Chemicals Business
- Overview
- Provides organic chemicals and solvents for diverse industrial uses.
- Competitiveness
- Product quality control and environmental load reduction technology
- Customers
-
- Chemical plants
- Pharmaceutical companies
- Agriculture-related businesses
- Paint manufacturers
- Electronic parts companies
- Products
-
- High-purity benzene
- Flame retardants
- Rust inhibitors
- Petroleum-based cleaners
- General organic solvents
Recycling and Environmental Materials Business
- Overview
- Contributes to society through EV battery recycling and environmental material development.
- Competitiveness
- Synergy with Furukawa Group and technological strength
- Customers
-
- Environmental conservation companies
- Waste treatment companies
- EV recycling companies
- Government agencies
- Research institutions
- Products
-
- Rare metal recycling materials
- Recycled chemical materials
- Low environmental impact materials
Electronic Materials-Related Business
- Overview
- Provides high-function materials for cutting-edge electronics industries.
- Competitiveness
- Technology-intensive product development capabilities
- Customers
-
- Semiconductor equipment manufacturers
- Electronic parts companies
- Information and communication device manufacturers
- Research institutions
- Products
-
- Specialty gases for semiconductors
- Chemicals for electronic materials
- Display materials
Construction Materials Business
- Overview
- Supplies reliable materials for construction and industry.
- Competitiveness
- High-quality management and customer response capabilities
- Customers
-
- Construction companies
- Industrial equipment manufacturers
- Logistics companies
- Products
-
- Steel processed products
- Rust-resistant materials
R&D Contract Business
- Overview
- Provides support for research and development in advanced technology fields.
- Competitiveness
- Specialized technology of the comprehensive development center
- Customers
-
- Chemical manufacturers
- Universities and research institutions
- Pharmaceutical companies
- Materials development companies
- Products
-
- Chemical material development
- Specialty gas analysis
- Material evaluation services
Transportation and Logistics Business
- Overview
- Provides safe and prompt logistics services.
- Competitiveness
- Group-wide logistics network
- Customers
-
- Group companies
- Trading companies
- Manufacturing companies
- Products
-
- Chemical transportation
- Specialty gas delivery
Competitive Advantage
Strengths
- Stable supply capability of high-purity specialty gases
- Stable management base from Furukawa Group
- Diverse chemical development and manufacturing technologies
- Efficient production system with multiple sites
- High-specialty battery materials technology
- Well-equipped R&D center
- Long-standing industry trust and customer base
- Solid financial position
- Active promotion of sustainability
- Diversified business operations
Competitive Advantages
- Product development strength through technology collaboration within Furukawa Group
- High-purity and stable supply response in specialty gas business
- Advanced initiatives in EV battery recycling
- Production network of Shibukawa and Mizushima factories
- Wide-ranging chemical product lineup
- Customization to meet customer needs
- Specialized technology in high-function materials
- Enhanced response to growing battery materials market
- Market differentiation through environmentally friendly product development
- Precise quality control and service provision
Threats
- Risk of raw material price fluctuations
- Acceleration of new technology development by competitors
- Cost increases due to stricter environmental regulations
- Risk of global supply chain disruptions
- Intense competition in EV battery market
- Profit instability due to exchange rate fluctuations
- Risk of sales decline due to market demand changes
- Risk of productivity decline due to labor shortages
- Obsolescence of existing products due to technological innovation
- Impact of overseas regulations and trade friction
Innovations
2024: Launch of EV Battery Recycling Business
- Overview
- Commercialization of battery recycling technology aimed at preventing overseas outflow of rare metals.
- Impact
- Contributes to reducing environmental impact and resource circulation
2023: Introduction of New High-Purity Fluorine Gas Product
- Overview
- New development and market rollout of high-performance fluorine gas for the semiconductor industry.
- Impact
- Strengthens product competitiveness and increases sales
2022: Development of Improved Lithium-Ion Battery Material Technology
- Overview
- Established improved cathode material technology to enhance automotive battery performance.
- Impact
- Improves battery life and safety
2021: Energy-Saving Upgrades to Precision Chemical Manufacturing Equipment
- Overview
- Introduced energy-saving equipment in manufacturing processes to reduce greenhouse gas emissions.
- Impact
- Reduces environmental impact and costs
2020: Development of New Specialty Gas Blending Technology
- Overview
- Developed blending technology for composite specialty gases, succeeding in product diversification.
- Impact
- Acquires new customers and expands market
Sustainability
- Promoting resource circulation through EV battery recycling
- Equipment investment in low-carbon manufacturing technology
- Chemical improvements for reducing environmental impact
- Strengthening safety and health activities and employee education
- Promoting community-based CSR activities
- Setting and achieving energy-saving and emission reduction targets
- Conducting environmental audits of supply chain
- Reducing waste and improving recycling rate
- Strengthening compliance with environmental regulations
- Regular publication of environmental reports
- Promoting green procurement
- Efficient use of water resources