Air Water

Basic Information

Stock Code
4088
Industry
Chemicals
Category Detail
Chemicals & Chemical Products
Prefecture
Osaka Prefecture
Establishment Year
September 1929
Listing Year
April 1950
Official Website
https://www.awi.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Nippon Sanso HD, Toho Acetylene, Koatsu Gas Kogyo, Koike Sanso Kogyo, Kubota, Yamaha Motor

Overview

Air Water is a leading industrial gas manufacturer in Japan, founded in 1929, and has built a strong foundation both domestically and internationally through diversified businesses spanning medical, food, chemicals, and more.

Current Situation

Air Water recorded consolidated sales of approximately 1.049 trillion yen and net profit of approximately 40.1 billion yen for the fiscal year ended March 2023, holding a position as one of Japan's three major industrial gas manufacturers. Its core industrial gas business excels in the steel and semiconductor sectors, delivering high-quality gas production and supply. In medical-related operations, it offers a wide range including in-hospital logistics management and medical gases, with a focus on patient support. Diversified business expansion has established growth foundations in agriculture, food, and chemicals. It advances business scale and diversification through proactive M&A. With sustainability in mind, it pursues environmental load reduction and regional collaboration, opening a new wellness facility in Osaka in 2023. Moving forward, it positions advanced medical care and SDG initiatives as key growth drivers, aiming for expansion both in Japan and overseas.

Trivia

Interesting Facts

  • One of the oldest players in Japan's industrial gas industry
  • Originated in Hokkaido, relocated headquarters to Osaka in 2023
  • Aggressively pursues M&A in agriculture and food sectors, holding diverse brands
  • Collaborates with major hospitals nationwide in medical gas provision
  • Possesses multiple chemical industry subsidiaries with high technological capabilities
  • Operates industry-government-academia health and wellness research promotion base
  • Close capital ties with multiple regional banks and major corporations
  • Deep historical relations with Mitsui & Co. and Sumitomo Group
  • Manufacturing bases cover from Hokkaido to Kyushu
  • Builds stable profit structure through diversified management
  • Deploys proprietary technology in aerosol products
  • Encompasses logistics and vehicle outfitting businesses for broad field expansion
  • Extensive sales bases from Hokkaido to Kanto and Kansai
  • Possesses carbon materials technology used in various industries
  • Long-term commitment to regional contribution activities

Hidden Connections

  • Strong capital ties with Sumitomo Group financial institutions and Sumitomo Mitsui Banking Corporation.
  • Business foundation inherited from former U.S. Air Products Group and former Daitowa Oxygen.
  • Acquired brands from former Megmilk Snow Brand system to expand food business.
  • Medical equipment subsidiaries inherit technology from Terumo lineage.
  • Jointly develops cryoplant business with Kobe Steel.
  • Strong ties with Hokkaido regional banks and agricultural cooperatives, contributing to local economy.
  • Holds Kawasaki Heavy Industries-affiliated Air Water disaster prevention subsidiary for disaster prevention business.
  • Acquired business from Maruha Nichiro subsidiary to significantly expand food operations.

Future Outlook

Growth Drivers

  • Increasing demand for high-function medical equipment in medical field
  • Expansion into hydrogen society and technological innovation in industrial gases
  • Expansion of health-oriented products in agriculture and food sectors
  • Increasing demand for eco-products amid stricter environmental regulations
  • New business development and strengthened collaboration in wellness field
  • Promotion of IoT and digital technology introduction in logistics and medical fields
  • Market expansion through domestic and international M&A strategy
  • Demand growth from semiconductor industry recovery and expansion
  • Sustainable growth through collaboration with local communities
  • Enhanced adaptability to global environmental regulations
  • Product innovation toward carbon neutrality
  • Advancement of next-generation materials and energy development

Strategic Goals

  • Maintain top-3 share in industrial gases domestically and internationally
  • Medical and healthcare business to account for over 30% of sales
  • Cultivate wellness field business as major growth driver
  • Establish green manufacturing system reducing CO2 emissions by 30%
  • Achieve over 50% sales ratio of sustainable products
  • Reduce costs by 20% through logistics efficiency and digitalization
  • Expand overseas sales ratio to over 20% through M&A
  • Build sustainable organization through diversity and talent development
  • Promote commercialization of next-generation hydrogen technologies
  • Expand community co-creation social contribution programs

Business Segments

Industrial Gas Supply

Overview
Provides gas manufacturing and supply services tailored to various industrial needs.
Competitiveness
Domestic top-three industrial gas manufacturer network
Customers
  • Steel manufacturers
  • Semiconductor manufacturers
  • Chemical industry
  • Machinery manufacturers
  • Automotive industry
  • Electronic component manufacturers
Products
  • High-purity oxygen gas
  • Nitrogen gas
  • Argon gas
  • Hydrogen gas
  • Helium
  • Gas generators

Medical Related Services

Overview
Advanced gas and equipment supply and management for medical facilities.
Competitiveness
Integrated provision of in-hospital logistics and gas supply
Customers
  • Hospitals
  • Clinics
  • Medical institutions
  • Medical equipment manufacturers
Products
  • Medical gases
  • In-hospital logistics management (SPD)
  • Medical equipment maintenance
  • Sterilization services

Food Processing and Distribution

Overview
Supports from food processing and manufacturing to distribution.
Competitiveness
Food manufacturing technology across multiple brands
Customers
  • Food manufacturers
  • Restaurant chains
  • Retailers
  • Wholesalers
Products
  • Meat processed products
  • Frozen foods
  • Agricultural product processing
  • Confectionery

Chemicals and Materials Business

Overview
Manufactures and processes high-function materials.
Competitiveness
Integrated provision of advanced materials and chemicals
Customers
  • Chemical manufacturers
  • Battery manufacturers
  • Materials processors
  • Automotive parts manufacturers
Products
  • Basic chemicals
  • Carbon materials
  • Synthetic resins
  • Specialty chemicals

Energy Supply

Overview
Stably supplies diverse energy products.
Competitiveness
Regionally integrated energy supply network
Customers
  • Residential market
  • Industrial energy consumers
  • Facility management companies
Products
  • LP gas
  • Kerosene
  • Natural gas

Logistics and Warehouse Management

Overview
Provides efficient logistics infrastructure and services.
Competitiveness
Logistics expertise across multiple industries
Customers
  • Manufacturers
  • Distributors
  • Retailers
  • Transportation companies
Products
  • Logistics warehouse services
  • Distribution management solutions
  • Vehicle body outfitting

Seawater Related Products

Overview
Provides seawater and salt products for diverse applications.
Competitiveness
High-quality seawater solutions
Customers
  • Food processors
  • Aquariums
  • Medical facilities
  • Salt producers
Products
  • Industrial salt
  • Artificial seawater

Disaster Prevention and Mitigation Products

Overview
Deploys products and services contributing to disaster prevention and mitigation.
Competitiveness
Energy-saving and environmentally friendly product proposals
Customers
  • Local governments
  • Corporate disaster prevention departments
  • General households
  • Construction companies
Products
  • Disaster prevention supplies
  • Mitigation technologies
  • Ecoloqa materials

Electronics and Machinery Parts

Overview
Provides a variety of electronic and machinery parts.
Competitiveness
High technological capability and customization
Customers
  • Electronic equipment manufacturers
  • Machinery manufacturers
  • Automotive parts suppliers
Products
  • Electronic sensors
  • Control machine parts
  • Mechatronics products

Agriculture Related Business

Overview
Broad support from agricultural production to food materials.
Competitiveness
Enhanced traceability and processing technology
Customers
  • Farmers
  • Agricultural cooperatives
  • Food processors
Products
  • Agricultural materials
  • Processed agricultural products
  • Beverage and confectionery raw materials

Medical and Dental Related Business

Overview
Supplies medical materials and advanced medical equipment.
Competitiveness
Provision of high-function materials
Customers
  • Medical institutions
  • Dental clinics
  • Medical equipment sales companies
Products
  • Medical gases
  • Dental materials
  • Radiation protection products

Aerosol Products Business

Overview
Manufactures and supplies industrial and consumer aerosols.
Competitiveness
Stable quality control and marketing
Customers
  • Industrial users
  • General consumers
  • Household goods manufacturers
Products
  • Lubricant aerosols
  • Cleaning sprays
  • Deodorizing aerosols

Competitive Advantage

Strengths

  • One of Japan's three major industrial gas manufacturers
  • Diversified business portfolio
  • Strong foundation in medical-related services
  • Possession of advanced materials and chemical technologies
  • Extensive logistics and supply network
  • Proactive M&A capabilities
  • Regionally integrated energy supply system
  • Abundant manufacturing sites and technological prowess
  • High customer trust and stable supply
  • Utilization of diverse sales channels
  • Technological innovation through R&D investment
  • Strong collaboration among group companies
  • Proactive response to sustainability
  • Expansion across a wide range of industries
  • Advanced medical equipment supply capabilities

Competitive Advantages

  • Builds superiority over major competitors in industrial gases through comprehensive strength
  • Diverse revenue sources integrating medical, agriculture, food, and chemicals
  • Rapid response via dispersed manufacturing and logistics bases nationwide
  • Differentiation from competitors through integrated latest medical technology and in-hospital logistics services
  • Rich product lineup and brand power
  • Secures stable customer base through regionally integrated energy supply
  • Rapidly incorporates growth areas through active M&A
  • R&D capabilities and technological accumulation geared toward international expansion
  • Provision of high value-added products like chemicals and carbon materials
  • New market opportunities via SDG-compliant products and services
  • Pioneering advancement in medical equipment and dental materials
  • Efficient services through extensive logistics network
  • Maximization of synergies within the group
  • Customization to meet customer needs
  • Long-term investment enabled by stable financial base

Threats

  • Risk of cost increases due to raw material price fluctuations
  • Price competition pressure from intensifying industry competition
  • Growth slowdown due to maturing domestic market
  • Increased operational costs from stricter environmental regulations
  • Overseas business risks due to international situations
  • Competition from new entrants with technological innovations
  • Unstable demand stemming from semiconductor industry business cycles
  • Impact on earnings from medical system reforms
  • Production halt risks from natural disasters
  • Supply delay risks from logistics disruptions
  • Exacerbated labor shortages due to aging society
  • Fluctuations in overseas earnings due to exchange rate changes

Innovations

2023: Opening of new wellness field business base 'Air Water Kento'

Overview
Established a creation and collaboration base for wellness-related businesses in the Northern Osaka Healthy Medical City.
Impact
Promotes open innovation among industry, government, academia, and citizens, supporting expansion in medical and health businesses

2022: Full subsidiary acquisition of Tateho Chemical Industry

Overview
Executed subsidiary acquisition to strengthen functional chemical products.
Impact
Enhances product lineup and technological capabilities in chemical-related business

2021: Name change and integration promotion for medical equipment-related company

Overview
Improved business efficiency through brand integration of medical equipment enterprises.
Impact
Expands market in medical business and improves customer services

2020: Launch of hydrogen production demonstration project

Overview
Began demonstration experiment using coal for hydrogen production in Mikasa City, Hokkaido.
Impact
Builds technological foundation toward future hydrogen society

Sustainability

  • Energy-saving in manufacturing processes to reduce CO2 emissions
  • Strengthening safety and hygiene support for medical institutions and local communities
  • Promotion of renewable energy adoption
  • Promotion of recycled resource utilization and waste reduction
  • Sustainable organizational management through talent development and diversity promotion
  • Disaster prevention and mitigation activities in collaboration with regions
  • Product development aimed at reducing environmental impact
  • Strengthening environmental and social considerations in supply chain
  • Advancement of health promotion businesses utilizing Kento new base
  • Thorough environmental management including ISO14001
  • Efficient resource utilization through energy management systems
  • Participation in regional agriculture revitalization support projects