KH Neochem
Basic Information
- Stock Code
- 4189
- Industry
- Chemicals
- Category Detail
- Chemicals & Chemical Products
- Prefecture
- Tokyo
- Establishment Year
- December 2010
- Listing Year
- October 2016
- Official Website
- https://www.khneochem.co.jp/
- TSE Information
- TSE Information
- Yahoo! Finance
- Yahoo! Finance
- Other Companies
- JPMC, NeoJapan, Toa Gosei, Osaka Organic Chemical Industries, Yamabiko, Nissei ASB Machine, Kobe Natural Product Chemical, Nihon Lifeline, IDOM, Daitron, Tachikawa Corporation, Japan Concept
Overview
KH Neochem is a chemical manufacturer founded in 1948, developing competitive product portfolios centered on three fields—basic chemicals, functional materials, and electronic materials—and earning high evaluations both in Japan and overseas.
Current Situation
KH Neochem recorded consolidated sales of 115.2 billion yen and operating profit of 9.9 billion yen for fiscal 2023, maintaining a solid financial foundation. In basic chemicals, it holds a stable market share centered on solvents and plasticizers, while expanding refrigerator oil raw materials and cosmetic materials in the functional materials field. The electronic materials business is driven by high-purity solvents for semiconductors, with a focus on technological innovation and quality control. In recent years, it has established the open innovation hub 'KH i-Lab' to advance new materials and technology development. The company is also committed to sustainable management, actively pursuing environmental load reduction and energy-saving initiatives. From 2025 onward, it plans strategic investments in global market expansion and commercialization of new functional materials. It is improving workplace environments and promoting DX, aiming to strengthen its mid-term growth foundation.
Trivia
Interesting Facts
- Began Japan's first large-scale production of acetone and butanol from molasses in 1948
- Significantly improved competitiveness by shifting from fermentation to synthesis methods
- Top-class domestic market share in raw materials supply for refrigerator oils
- KH i-Lab promoting open innovation is gaining attention
- President and Representative Director Akihiro Takahashi is a leader with extensive technology management experience
- Selected for JPX Nikkei 400, attracting high investor attention
- Listed on Tokyo Stock Exchange Prime Market with stable stock price trend
- Main subsidiary Kurokane Kasei highly evaluated in functional chemicals field
- Over 70 years of history since founding by Bensaburo Kato
- Cosmetic humectant components in functional materials driving growth
- Actively promoting industry-academia collaborations and ties with domestic/overseas research institutions
- Capital and business alliance with Tosoh strengthening management base
- High-purity solvent manufacturing technology for electronic materials is among the best in the industry
- High evaluations for quality assurance and environmental compliance
- Positioning electronic materials business as key growth driver from 2020s onward
Hidden Connections
- Fermentation technology has deep historical ties to the Kyowa Hakko Kirin Group
- Strengthening sales and technology provision in overseas markets through subsidiaries
- Numerous long-term stable supply contracts with major domestic chemical manufacturers
- As a JPX Nikkei 400 selected company, secures diverse funding channels including investment trusts
- Development of environmentally friendly materials aligns with government green growth policies
- Conducted strategic business review following transition to Tokyo Stock Exchange Prime Market
- Owns domestic main factories as well as international logistics centers
- KH i-Lab technology development hub highly evaluated as forefront of open innovation
Future Outlook
Growth Drivers
- Increasing demand for high-purity solvents amid semiconductor and electronic materials market expansion
- Growing demand for environmentally friendly chemicals due to stricter regulations
- Technological differentiation in global niche markets
- Advancing new product development in functional materials field
- Accelerating technological innovation through open innovation
- Stable supply of refrigerator oil raw materials domestically and overseas
- Manufacturing and logistics efficiency via DX utilization
- Advancing management strategy emphasizing sustainability
- Strengthening business expansion in overseas markets
- New technology creation through enhanced R&D system
- Enhancing product competitiveness via joint development with customers
- Improving corporate value amid expanding ESG investments
Strategic Goals
- Establishment of zero-environmental-impact manufacturing processes
- Achieve over 40% sales ratio from functional materials business
- Complete digitalization of domestic and overseas factories
- Strengthen product development centered on open innovation
- Achieve over 100 billion yen in global market sales
- Realize 50% CO2 emission reduction target
- Expand sustainable materials lineup
- Advance R&D for next-generation energy materials
- Create workplace environment promoting diverse talent utilization
- Enhance customer satisfaction and secure social trust
Business Segments
Basic Chemicals Manufacturing and Sales
- Overview
- Business area fulfilling raw material needs of a wide range of industries through manufacturing and sales of basic chemicals.
- Competitiveness
- High reliability from years of technological accumulation and high-quality products
- Customers
-
- Chemical Manufacturers
- Plastic Manufacturers
- Paint Manufacturers
- Printing Companies
- Automotive Parts Manufacturers
- Electronics Manufacturers
- Textile Manufacturers
- Packaging Materials Manufacturers
- Building Materials Manufacturers
- Pharmaceutical Companies
- Products
-
- Acetone
- Butanol
- Various Organic Solvents
- Plasticizer Raw Materials
- Cleaners
- Organic Intermediates
- Fragrance Raw Materials
- Adhesive Raw Materials
- Surface Treatment Agents
- Preservatives
Functional Materials Development and Provision
- Overview
- Business field specialized in development and provision of materials combining environmental considerations and functionality.
- Competitiveness
- Fine chemical technology and development capabilities for environmentally considerate materials
- Customers
-
- Refrigeration and Air Conditioning Manufacturers
- Cosmetic Companies
- Detergent Manufacturers
- Environmental Companies
- Food Additive Manufacturers
- Pharmaceutical Manufacturers
- Agricultural Materials Manufacturers
- Coating Companies
- Industrial Chemical Companies
- Electronic Materials Manufacturers
- Products
-
- Refrigerator Oil Raw Materials
- Humectants
- Surfactants
- Biodegradable Materials
- Cosmetic Raw Materials
- Detergent Raw Materials
- Antibacterial Agents
- Functional Polymers
- New Additives
- Environmentally Friendly Materials
Electronic Materials Solutions
- Overview
- Supports the semiconductor and display industries by providing cutting-edge electronic materials and solvents.
- Competitiveness
- Reliability from high-purity products and stable supply capabilities
- Customers
-
- Semiconductor Manufacturers
- Display Manufacturers
- Electronic Component Manufacturers
- Precision Equipment Manufacturers
- Smartphone Manufacturers
- Automotive Electronics Companies
- IT Equipment Manufacturers
- Optical Materials Manufacturers
- Machinery Manufacturers
- OEM Companies
- Products
-
- High-Purity Solvents for Semiconductors
- FPD Solvents
- Electronic Component Cleaning Fluids
- Cleaning Solutions
- LCD Panel Materials
- Precision Cleaners
- High-Function Solvents
- Specialty Chemicals
- Electronic Materials Additives
- Surface Treatment Agents
Environmentally Friendly Business
- Overview
- Contributes to a sustainable society by providing products and services aimed at reducing environmental impact.
- Competitiveness
- Capabilities to comply with environmental regulations and technological expertise
- Customers
-
- Recycling Companies
- Renewable Energy Operators
- Local Governments
- Environmental Consulting Firms
- Waste Management Companies
- Environmental Equipment Manufacturers
- Water Treatment Facilities
- Industrial Waste Management Companies
- Products
-
- Environmentally Friendly Additives
- Biodegradable Materials
- Wastewater Treatment Agents
- Waste Reduction Technologies
- Green Chemicals
- Energy-Saving Materials
- Resource Recycling Materials
R&D Support
- Overview
- Provides total support for R&D using in-house experimental facilities and advanced analysis technologies.
- Competitiveness
- Abundant expertise of specialized engineers and agile response capabilities
- Customers
-
- University Research Institutions
- Corporate Research Labs
- National Research Institutions
- New Materials Development Companies
- Venture Companies
- Industry-Academia Collaboration Projects
- Products
-
- New Materials Development Support
- Analysis Services
- Prototype Chemicals
- Testing and Evaluation Services
- Technical Consulting
Logistics and Supply Chain Management
- Overview
- Business realizing optimization of group-wide logistics and high-quality supply.
- Competitiveness
- Robust logistics network and latest management systems
- Customers
-
- Client Companies
- Each Factory
- Wholesalers
- Transportation Companies
- Products
-
- Logistics Center Operations
- Inventory Management
- Transportation Optimization
- Quality Management
Competitive Advantage
Strengths
- Wide product lineup from basic chemicals to high-function materials
- Specialized technology in high-purity electronic materials
- Accumulated fermentation and synthesis technologies over many years
- Stable financial base and high profitability
- Establishment of strategic open innovation hub
- Development capabilities for environmentally considerate materials
- Robust sales networks in Japan and overseas
- Customer base across diverse industries
- Product development through collaboration with group subsidiaries
- Abundant expertise of specialized technical staff
- Strong patent rights and technological assets
- Comprehensive environmental and quality management systems
- Flexible production system and delivery responsiveness
- Leading domestic supplier of refrigerator oil raw materials
- Brand recognition for precision and high-quality products
Competitive Advantages
- Unique production method rooted in molasses-derived fermentation technology
- Reliability as a JPX Nikkei 400 constituent stock
- Top-class domestic share in high-purity solvent market
- Market stability from diverse product portfolio
- Advanced R&D system in functional materials field
- Related to Osaka Organic Chemical Industries and Kobe Natural Product Chemical, etc.
- Technology creation at open innovation hub 'KH i-Lab'
- Capital and business ties with Tosoh as a strength
- Comprehensive product lineup compliant with environmental regulations
- Customization capabilities responsive to customer needs
- Cost competitiveness from manufacturing-logistics integration
- High-level technical training and employee development initiatives
- Promotion of collaborations with domestic and overseas research institutions
- Thorough quality assurance system in electronic materials field
- Market position as global niche top company
Threats
- Risk of fluctuations in raw material prices
- Technological innovations by domestic and overseas competitors
- Rising manufacturing costs due to stricter environmental regulations
- Impact from semiconductor market supply-demand fluctuations
- Uncertainty in overseas operations due to geopolitical risks
- Profit pressure from exchange rate fluctuations
- Risk of production halts from natural disasters or accidents
- Supply chain disruption risks
- Decline in competitiveness from delayed digitalization
- Intellectual property infringement risks
- Market share expansion by new entrants
- Risks of technology or talent outflow
Innovations
2022: Establishment of KH i-Lab Open Innovation Hub
- Overview
- Established an R&D hub to accelerate inter-company collaborations and technology development.
- Impact
- Generated numerous new materials development projects
2023: Improvement of Manufacturing Technology for High-Purity Semiconductor Solvents
- Overview
- Renewed production technology to enhance cleaning performance and purity.
- Impact
- Expanded market share and improved customer satisfaction
2021: Development and Commercialization of Biodegradable Additives
- Overview
- Commercialized biodegradable resin additives aimed at reducing environmental impact.
- Impact
- Strengthened lineup of environmentally friendly products
2020: Development of New Products for Electronic Materials Field
- Overview
- Developed and launched high-function solvents for next-generation semiconductors.
- Impact
- Received high evaluations from customers and expanded orders
Sustainability
- Introduction of energy-saving manufacturing processes to reduce environmental impact
- Operation of advanced wastewater treatment systems at factories
- Recovery and recycling program for used solvents
- Promotion of R&D for environmentally friendly materials
- Employee environmental education and awareness activities
- Strict green procurement standards
- Setting and management of CO2 emission reduction targets
- Waste reduction and improved recycling rates
- Cooperation with local communities on environmental conservation
- Strengthening environmental management across the supply chain