Nippon Shokubai

Basic Information

Stock Code
4114
Industry
Chemicals
Category Detail
Chemicals & Chemical Products
Prefecture
Osaka Prefecture
Establishment Year
August 1941
Listing Year
May 1952
Official Website
https://www.shokubai.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Kuraray, Sumitomo Seika, Denka, Hodogaya Chemical, Kaneka, Daicel, Riken Technos, Gun-ei Chemical Industry, Arakawa Chemical Industries, Arisawa Mfg., FCC, Ballqua, Meitec G

Overview

Nippon Shokubai is a chemical manufacturer founded in 1941, boasting the world's top market share in acrylic acid and super absorbent polymers, and is an industry-leading company with strengths in catalyst technology.

Current Situation

In fiscal 2022, consolidated sales reached approximately 419.6 billion yen, with ethylene oxide and acrylic acid as main products. It holds the world's No. 1 share in super absorbent polymers and has strengthened its business foundation backed by investment from Sumitomo Chemical. In addition to domestic operations in Japan, it has overseas bases in Asia, North America, and Europe, expanding its business globally. Having experienced fire accidents and production facility shutdowns, it has reinforced safety management and strives to improve product quality. It promotes research and development in catalyst technology and focuses on automotive exhaust gas purification and environmentally friendly products. In recent years, it has doubled investments and actively advanced into new businesses such as battery materials, positioning sustainability at the core of its management strategy. It promotes the realization of a sustainable society and its 2030 growth strategy, working to strengthen competitiveness across diverse business areas.

Trivia

Interesting Facts

  • Approx. 25% world share in super absorbent polymers, industry leader.
  • Provides licenses for acrylic acid and derivatives worldwide, influencing approx. 55% of the market.
  • Japan's first company to focus on vanadium catalysts at its 1941 founding.
  • Has a long history and track record in catalyst research in Japan.
  • Experienced a large-scale fire accident at its Himeji plant in the past.
  • Announced management integration with Sanyo Chemical Industries in 2020 but canceled.
  • Strong R&D capabilities with multiple research institutes and manufacturing bases domestically and overseas.
  • Pioneering company in environmental field with dioxin decomposition catalysts.
  • Corporate philosophy 'Techno Amenity,' contributing to people's comfort through technology.
  • Drew attention by hiring famous Taiwanese and Finnish film directors for CMs.
  • Actively conducts research activities at domestic and international chemical and catalyst societies.
  • Member of Daiwa-kai, maintaining strong ties with finance and industry.
  • Achieved Japan's first commercialization of acrylic acid esters.
  • Contributes to environmental technology through automotive exhaust catalyst manufacturing.
  • Specializes only in catalyst chemicals, does not manufacture filters.

Hidden Connections

  • Strong capital relationship with Sumitomo Chemical investment, deep business collaboration.
  • Shareholder relationships with major energy companies like ENEOS Holdings.
  • Affiliated with Mitsui Group and Fuyo Group, has broad industrial network.
  • Nippon Shokubai has ties to finance and construction industries through Daiwa-kai.
  • Nippon Shokubai Group companies collaborate to promote diversified chemical materials.
  • Transactions with automakers like Toyota in automotive exhaust catalyst production.
  • Dioxin decomposition catalyst products gaining attention amid advancing environmental regulations.
  • Multiple research institutes nationwide, core presence in domestic chemical research.

Future Outlook

Growth Drivers

  • Increasing global demand for super absorbent polymers and acrylic acid
  • Expansion of catalyst product demand due to stricter environmental regulations
  • Technological innovation and market entry in battery materials
  • Strengthening global production and sales systems
  • Increased investment in sustainable chemical development
  • Demand growth from infrastructure investment expansion in emerging markets
  • New product creation through enhanced R&D capabilities
  • Promotion of digital transformation
  • Shift to environmentally considerate products and policy support
  • Multi-application deployment of high-function industrial materials

Strategic Goals

  • Achieve over 30% world share in super absorbent polymers
  • Achieve 50% CO2 emission reduction for lower environmental impact
  • Create new revenue of 30 billion yen in battery materials business
  • Optimize and streamline global production bases
  • Achieve international compliance and strengthening of environmental safety standards
  • Build sustainable resource circular business model
  • Gain industry-leading evaluation in safety and quality management
  • Maintain and expand R&D expenses to over 10% of sales
  • Deploy diversified business portfolio
  • Promote coexistence with local communities and sustainability

Business Segments

Basic Chemicals Manufacturing

Overview
Segment that manufactures raw chemicals and supplies them to a wide range of industries.
Competitiveness
High-purity product supply based on catalyst technology
Customers
  • Resin manufacturers
  • Paint manufacturers
  • Adhesive manufacturers
  • Cosmetics manufacturers
  • Pharmaceutical manufacturers
  • Agrochemical manufacturers
  • Electronic materials manufacturers
Products
  • Acrylic acid
  • Ethylene oxide
  • Ethylene glycol
  • Acrylic acid esters
  • Super absorbent polymers
  • Functional chemicals

Environmental Catalysts and Exhaust Purification Products

Overview
Business field responsible for developing and manufacturing catalyst products for environmental conservation.
Competitiveness
Advanced catalyst technology and environmentally compatible product lineup
Customers
  • Automotive manufacturers
  • Environmental equipment manufacturers
  • Industrial equipment manufacturers
  • Public institutions
  • Waste treatment companies
Products
  • Automotive exhaust catalysts
  • Dioxin decomposition catalysts
  • Exhaust removal catalysts

Battery Materials Business

Overview
Provides battery-related materials for next-generation energy fields.
Competitiveness
Support for battery performance improvement through high-function material technology
Customers
  • Battery manufacturers
  • Automotive manufacturers (EV-related)
  • Electronic device manufacturers
Products
  • Lithium-ion battery additives
  • Electrolyte materials
  • Cathode material-related chemicals

Pharmaceuticals and Bio-Related Chemicals

Overview
Develops and supplies high-purity chemicals for pharmaceutical manufacturing.
Competitiveness
Raw material technology combining high purity and safety
Customers
  • Pharmaceutical companies
  • Biotechnology companies
  • Research institutions
Products
  • Pharmaceutical APIs
  • Intermediate chemicals
  • Bio-related materials

Functional Coating Materials

Overview
Develops and manufactures functional materials for the electronics industry.
Competitiveness
High-precision synthesis technology and quality control
Customers
  • Electronic component manufacturers
  • Optical equipment manufacturers
  • Semiconductor manufacturers
Products
  • Photoresists
  • Optical films
  • Semiconductor encapsulants

Emulsifiers and Surfactants Business

Overview
Provides emulsifiers for diverse industrial applications.
Competitiveness
High functionality and broad applicability
Customers
  • Paint manufacturers
  • Adhesive manufacturers
  • Food industry
  • Agricultural materials manufacturers
Products
  • Polymer emulsifiers
  • Surfactants
  • Dispersants

Agricultural Chemicals

Overview
Manufactures and provides chemical products supporting agriculture.
Competitiveness
Technology contributing to sustainable agricultural production
Customers
  • Agricultural corporations
  • Fertilizer manufacturers
  • Farm equipment manufacturers
Products
  • Water-retaining resins
  • Soil conditioners
  • Pesticide additives

Building Materials and Adhesives Chemicals

Overview
Provides chemical products that enhance performance in building materials.
Competitiveness
Material technology superior in durability and workability
Customers
  • Building materials manufacturers
  • Construction companies
  • Adhesive manufacturers
Products
  • Synthetic resins
  • Adhesive additives
  • High-function materials for building materials

Resins and Plastics-Related Materials

Overview
Develops resin additives for diverse applications.
Competitiveness
Balancing high performance with environmental compatibility
Customers
  • Plastic manufacturers
  • Automotive parts manufacturers
  • Electronic device manufacturers
Products
  • Heat-resistant additives
  • Flame retardants
  • Plastic modifiers

Electronic Materials Manufacturing

Overview
Segment conducting R&D and mass production of advanced electronic materials.
Competitiveness
High-quality product supply through precision chemical technology
Customers
  • Semiconductor manufacturers
  • Display manufacturers
  • Electronic device manufacturers
Products
  • Optical films
  • Photoresists
  • Encapsulants

Functional Resins Manufacturing

Overview
Manufactures resin products for special applications to support industries.
Competitiveness
Multifunctional and custom design technology
Customers
  • Paint manufacturers
  • Printing manufacturers
  • Electronics industry
Products
  • Functional polymers
  • Special coating materials
  • Printing resins

R&D Support Services

Overview
Supports R&D and promotes collaboration with other companies.
Competitiveness
Advanced technology and experienced expert team
Customers
  • Industry partner companies
  • Universities and research institutions
Products
  • Technical consulting
  • Custom chemical synthesis
  • Testing and analysis services

Competitive Advantage

Strengths

  • World-class super absorbent polymer technology
  • Global share in acrylic acid production
  • Reliable foundation backed by Sumitomo Chemical investment
  • Long track record in catalyst technology development
  • Global production and sales network
  • Diverse chemical product lineup
  • Manufacturing technology for environmentally compatible products
  • Robust R&D organization
  • Strengthened safety management and accident response experience
  • Expansion into new businesses like battery materials
  • Advanced quality management system
  • Dual expansion in industrial and consumer products
  • Adaptability to diverse customer bases
  • Initiatives for sustainable society contributions
  • Comprehensive strength with group companies

Competitive Advantages

  • Possesses numerous high-performance, environmentally compatible catalyst technologies, establishing market superiority
  • Maintains top share in acrylic acid and super absorbent polymers in global markets
  • Strong management base through capital ties with Sumitomo Chemical
  • Leverages overseas bases for global production and sales deployment, demonstrating competitiveness
  • Product development capabilities with proprietary technology and broad application fields
  • Addresses sustainability needs ahead of time by expanding low-environmental-impact products
  • Stable supply of high-quality products based on long manufacturing experience
  • Multifaceted R&D divisions lead industry technological progress
  • Diversity in providing product lines tailored to market needs across multiple business fields
  • Focusing on nurturing new business areas to expand growth opportunities
  • Strengthened safety measures lead to trust assurance
  • Development of environmental and energy-related products as future revenue sources
  • Synergy effects created through collaboration with group companies
  • Diversified trading partners and access to global customers as strengths
  • Products compliant with domestic and international regulations enhance competitiveness

Threats

  • Risk of profit pressure from intensifying price competition in chemical products market
  • Concerns over cost increases due to raw material price fluctuations
  • Rising compliance costs for production methods and products due to stricter environmental regulations
  • Intensifying competition with emerging country manufacturers
  • Impact on overseas business from geopolitical risks and trade friction
  • Risk of declining competitiveness if unable to keep up with rapid technological innovation
  • Risk of safety accidents and their social impact
  • Changes in demand structure due to emergence of alternative materials
  • Profit instability from exchange rate fluctuations
  • Potential market share loss to new entrants
  • Increased manufacturing costs from rising energy prices
  • Disruptions in global supply chains

Innovations

2024: Doubling investment in battery materials

Overview
Implemented large-scale investment in next-generation battery material development to strengthen product competitiveness.
Impact
Contributes to sales expansion in battery sector

2023: Construction starts on new Kitakyushu plant

Overview
Building new plant to expand production capacity for super absorbent polymer-related products.
Impact
Improved production efficiency and job creation

2022: Enhanced environmental compatibility of catalyst products

Overview
Improved dioxin decomposition catalysts to enhance environmental purification performance.
Impact
Market share expansion and strengthened regulatory compliance

2021: Development of functional super absorbent polymers

Overview
Commercialized new super absorbent polymers balancing absorption speed and retention.
Impact
Established competitive edge in hygiene materials market

2020: Strengthened R&D system using AI

Overview
Introduced AI-based new material exploration system to improve research efficiency.
Impact
Shortened R&D periods and cost reductions

Sustainability

  • Active introduction of low-environmental-impact processes
  • Deployment of high-efficiency energy utilization technologies
  • Production management aiming for zero hazardous substance emissions
  • Product recycling design and waste reduction
  • Environmental conservation activities in collaboration with local communities
  • Promotion of measures based on CO2 emission reduction plans
  • Active utilization of renewable energy
  • Workplace environment improvements prioritizing safety and health
  • Establishment of sustainable resource procurement
  • Strengthening environmental and ethical standards in supply chains
  • Corporate contribution programs for biodiversity conservation
  • Enhancing environmental awareness through employee education