Shikoku Chemicals Corporation

Basic Information

Stock Code
4099
Industry
Chemicals
Category Detail
Chemicals & Chemical Products
Prefecture
Kagawa Prefecture
Establishment Year
October 1947
Listing Year
October 1962
Official Website
https://www.shikoku.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Mitsuchi, Nankai Chemical, Nippon Soda, Toa Gosei, Osaka Soda, Ise Chemicals, Nippon Seika, Nozaki Paper

Overview

Shikoku Chemicals Corporation is a specialist in chemical products and building materials founded in 1947, a leading domestic manufacturer that has built a solid position in insoluble sulfur for tires and the building materials sector.

Current Situation

Shikoku Chemicals Corporation achieved consolidated sales of approximately 63.1 billion yen in 2023, maintaining stable growth as a major domestic manufacturer of chemical products and building materials. Its core businesses are chemicals including insoluble sulfur and the development and sales of building materials for housing and landscaping. In recent years, it has installed new production facilities for high-function chlorinated isocyanuric acid disinfectants to strengthen product competitiveness. In conjunction with the transition to a holding company structure, it split off its chemical products and building materials businesses into separate subsidiaries to improve operational efficiency. Leveraging its research and development center, it focuses on new technology development while strengthening its nationwide sales network in Japan to expand market share. It also considers sustainability and works to reduce environmental impact. Moving forward, it will promote expansion into non-residential building materials and higher-quality chemicals, deploying a mid- to long-term strategy to meet the needs of local communities and customers. With a focus on management stability and sustainable growth, it continues to optimize production systems and market development.

Trivia

Interesting Facts

  • Veteran chemical manufacturer that started with carbon disulfide production.
  • Successfully diversified into building materials in 1970.
  • Key supplier of insoluble sulfur to domestic tire makers.
  • Owns multiple plants in Tokushima and Kagawa.
  • Strengthened group management by becoming a holding company in 2023.
  • Exterior products widely used in regional home construction.
  • Operates bases in Shanghai and the US for import/export.
  • Continuously investing in chemical R&D since 1975.
  • Related companies include damage insurance and IT services.
  • TV commercials started in 2005, boosting brand recognition.

Hidden Connections

  • Collaborates with major shareholder Nisshinbo Holdings at the product level.
  • Strong influence in housing and landscaping markets through ties with building materials companies.
  • Historical connection to Kansai Kuko Ferry-related enterprise.
  • U.S. SHIKOKU INTERNATIONAL CORPORATION serves as a sales base.
  • Related to Moss Burger franchise operator in Kagawa Prefecture.
  • Group owns designated soil contamination survey institution under Soil Contamination Countermeasures Law.
  • Chemical production bases concentrated in Kitajima Town, Tokushima Prefecture.
  • Supports industry innovation through new technology development at R&D center.

Future Outlook

Growth Drivers

  • Increasing market demand for high-function chemicals
  • Expansion of non-residential building materials market
  • Growing needs for products compliant with environmental regulations
  • Residential remodeling demand in regional markets
  • Promotion of exports to overseas markets
  • Management efficiency improvements from holding company structure
  • Product innovation through strengthened R&D
  • Advances in energy-saving and environmental technologies
  • Increased building materials demand from social infrastructure development
  • Strengthened regionally integrated sales channels

Strategic Goals

  • Achieve sustainable product development and reduced environmental impact
  • Reach sales of over 70 billion yen
  • Non-residential segment to account for over 30% of building materials sales
  • Expand market share domestically and internationally
  • Strengthen profitability through management efficiency
  • Maximize synergies through group collaboration
  • Enhance coexistence with local communities
  • Enrich lineup of next-generation eco-friendly products
  • Deepen global expansion
  • Improve employee work-life balance and talent development

Business Segments

Chemical Products Manufacturing and Sales

Overview
Business segment providing high-function chemicals for various industrial uses.
Competitiveness
Product differentiation through advanced R&D capabilities
Customers
  • Tire Manufacturers
  • Printed Wiring Board Manufacturers
  • Water Treatment Facility Operators
  • Industrial Chemical Distributors
  • Environmental Companies
Products
  • Insoluble Sulfur
  • Chlorinated Isocyanuric Acid
  • Rust Preventives for Printed Wiring Boards
  • Microbial and Enzyme Agents for Wastewater Treatment
  • Disinfectants

Building Materials and Exteriors Manufacturing and Sales

Overview
Wide range of building materials and exterior products for homes and public facilities.
Competitiveness
Regionally integrated nationwide sales network and design/development capabilities
Customers
  • Residential Construction Companies
  • Non-Residential Builders
  • Exterior Specialty Contractors
  • Building Materials Distributors
  • Remodeling Companies
Products
  • Interior Wall Materials
  • Exterior Building Materials
  • Carports
  • Gates
  • Paving Materials

Research and Development and Technical Services

Overview
Provides R&D services contributing to product development and quality assurance.
Competitiveness
Largest chemical research center in the Shikoku region
Customers
  • Group Companies
  • Related Companies
  • Industry Partners
Products
  • New Product Development
  • Quality Assurance
  • Technical Support

Overseas Business (Import/Export and Sales)

Overview
Expands product distribution to international markets.
Competitiveness
Local responsiveness through subsidiaries in China and the US
Customers
  • Overseas Chemical Manufacturers
  • Building Materials Sales Companies
  • Importers/Exporters
Products
  • Chemical Import/Export
  • Building Materials Import/Export

Competitive Advantage

Strengths

  • High product development and technological capabilities
  • Diverse business portfolio across wide areas
  • Long industry track record and trust
  • Regionally integrated production and sales system
  • Solid management base and stable earnings

Competitive Advantages

  • Leading domestic supplier of insoluble sulfur for radial tires
  • Diverse product lineup and customer responsiveness in building materials
  • Innovation provision through R&D bases
  • Group structure covering both chemicals and building materials
  • Improved management efficiency from transition to holding company

Threats

  • Risk of raw material price fluctuations
  • Demand contraction due to Japan's declining population
  • Cost increases from stricter environmental regulations
  • Market penetration by overseas competitors
  • Earnings pressure from exchange rate fluctuations

Innovations

2023: Construction of Chlorinated Isocyanuric Acid Production Facility (NEO2022)

Overview
Introduced new disinfectant production facility to improve manufacturing capacity and quality.
Impact
Achieved improved production efficiency and product quality stabilization

2021: Construction of Tokushima Advanced Chemicals Plant-4 (TAP-4)

Overview
Advanced product diversification through new plant for high-function chemicals.
Impact
Contributes to new product development and enhanced market competitiveness

2023: Transition to Holding Company Structure and Business Subsidiary Split

Overview
Optimized business operations by splitting chemicals and building materials for management efficiency.
Impact
Promotes faster decision-making and business growth

Sustainability

  • Reducing environmental impact through energy-saving equipment
  • Efforts to improve waste recycling rates
  • Promotion of environmentally friendly product development
  • CSR activities emphasizing coexistence with local communities
  • Strengthened labor safety and health management
  • Implementation of pollutant emission reduction programs
  • Maintenance of ISO 14001 environmental management certification
  • Promotion of sustainable resource use
  • Thorough environmental education for employees
  • Establishment of green procurement policies