Daicel

Basic Information

Stock Code
4202
Industry
Chemicals
Category Detail
Chemicals & Chemical Products
Prefecture
Osaka Prefecture
Establishment Year
September 1919
Listing Year
May 1949
Official Website
https://www.daicel.com/
TSE Information
TSE Information
Yahoo! Finance
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Other Companies
Kuraray, Sumitomo Seika Chemicals, Denka, Hodogaya Chemical, Nippon Shokubai, Kaneka, Zeon, Rikentechnos, Gun-ei Chemical Industry, Arakawa Chemical Industries, Valqua

Overview

Daicel is a chemical manufacturer founded in 1919, boasting top-class technology in Japan and a global market share in cellulose acetate and tobacco filter sectors.

Current Situation

Daicel achieved consolidated sales of approximately 558 billion yen and net assets of approximately 374.8 billion yen for the fiscal year ended March 2024, maintaining stable growth across diverse domestic and international markets. In addition to its core cellulose acetate products, it holds the world's second-largest share in the tobacco filter business and the domestic top position with third place globally in automotive airbag inflators. In recent years, it has achieved cost reductions and productivity improvements through production innovations and strengthened R&D efforts. Emphasizing sustainability, it is actively developing low-environmental-impact products and promoting plastic reduction. Through multinational expansion, it has diversified its business base while serving a wide range of customers from B2B to B2C. In the medium to long term, it aims to develop new materials and expand into growth areas, having withdrawn from unnecessary defense-related businesses in 2023 to improve its earnings structure. It pursues sustainable growth, advancing technological innovation and enhancing global competitiveness toward 2030.

Trivia

Interesting Facts

  • Japan's only tobacco filter manufacturer
  • Daicel method is a production innovation model for the chemical industry
  • Mechanical airbag inflator is the world's only production technology
  • Led the world market in celluloid products at founding
  • Strategic relationship with Fujifilm through cross-shareholdings
  • Century-old established chemical manufacturer
  • Factory sites redeveloped into Aeon Malls
  • Strong group collaboration as part of Mitsui Group
  • Achieved 20% reduction in manufacturing costs through waste elimination
  • World No. 3 share in airbag inflators
  • Global company with multinational production and research bases
  • Supports customer competitiveness with proprietary production management system
  • High global market share in electronic materials
  • Completed full withdrawal from defense-related products in 2023
  • Significant contributions to technological innovation in the tobacco industry

Hidden Connections

  • Strategic partner with Fujifilm through cross-shareholdings
  • Belongs to Mitsui Group with close ties to many group companies
  • Daicel production innovation method adopted by other major companies
  • Member of the Saisho-kai Group from the former Iwai Zaibatsu
  • Originally established by merger of 8 celluloid companies
  • Concentrated management resources by withdrawing from defense-related products
  • Japan's only tobacco filter maker exporting worldwide
  • Headquarters in Grand Front Osaka, focusing on cutting-edge technology

Future Outlook

Growth Drivers

  • Biodegradable materials responding to strengthening global environmental regulations
  • Increasing demand for high-function materials with electronic material evolution
  • High-functionalization and alternative development for tobacco filters
  • Global expansion of automotive safety parts market
  • Enhanced cost competitiveness through production innovation technology
  • Business expansion into multiple fields via new material development
  • Base expansion and sales strengthening in global markets
  • Customized product provision meeting customer needs
  • Rising demand for sustainability-oriented products
  • Accelerated R&D for acquiring innovative technologies
  • Diversifying demand for industrial functional chemicals
  • Improved customer evaluations for high quality and safety

Strategic Goals

  • Achieve over 50% sales ratio of eco-friendly products
  • Expand global sales to 1.5x current levels
  • Continuously increase R&D investment and promote innovation
  • Complete digitalization of supply chain
  • Achieve carbon emission reduction targets and improve ESG ratings
  • Realize new business sales exceeding 100 billion yen
  • Provide world-top-class safety function parts
  • Promote diverse talent utilization and corporate culture innovation
  • Strengthen sustainable coexistence with local communities
  • Establish technological superiority in global markets

Business Segments

Electronic Materials Manufacturing

Overview
Provides high-precision, stable materials for electronic components, supporting customers' high-quality product manufacturing.
Competitiveness
Strong collaboration and technological development with Fujifilm
Customers
  • LCD Panel Manufacturers
  • Semiconductor Manufacturers
  • Electronic Device Assemblers
  • Polarizing Plate Manufacturers
Products
  • Cellulose Acetate Film
  • Photoresist
  • Semiconductor Encapsulant

Automotive Safety Components

Overview
Domestic top share in high-reliability safety parts, supplied globally.
Competitiveness
World-unique mechanical inflator production technology
Customers
  • Automakers
  • Airbag Manufacturers
  • Safety Parts Suppliers
Products
  • Airbag Inflators
  • Propellants
  • Safety Function Parts

Tobacco Filter Manufacturing

Overview
Japan's only manufacturer with world No. 2 share, providing enhanced functional products.
Competitiveness
Advanced fiber processing technology and quality control
Customers
  • Domestic and International Tobacco Manufacturers
  • Functional Filter Manufacturers
Products
  • Cellulose Acetate Filters
  • Functional Tobacco Filters

Synthetic Resin Supply

Overview
Meets needs across industries with synthetic resins in various forms.
Competitiveness
Flexible response through multi-variety, small-lot production system
Customers
  • Electronics Manufacturers
  • Automotive Parts Manufacturers
  • Packaging Materials Manufacturers
Products
  • ABS Resin
  • Polyethylene
  • Special Resin Materials

Pyrotechnics and Propellants

Overview
Trusted supply of pyrotechnics backed by advanced safety technology.
Competitiveness
Advanced explosives manufacturing technology adaptable to multiple uses
Customers
  • Defense-Related Companies
  • Automotive Airbag Manufacturers
  • Industrial Explosives Users
Products
  • Industrial Explosives
  • Propellant Products
  • Safe Pyrotechnics

Functional Chemicals Manufacturing

Overview
Addresses needs in wide fields with industrial functional chemicals.
Competitiveness
Proprietary synthesis technology and eco-friendly product development
Customers
  • Chemical Manufacturers
  • Pharmaceutical Companies
  • Electronic Materials Developers
Products
  • Organic Synthetics
  • Eco-Friendly Chemical Materials
  • Pharmaceutical Intermediates

Packaging Materials Supply

Overview
Supplies packaging materials balancing environmental considerations and high functionality.
Competitiveness
Leadership in eco-material technology
Customers
  • Food Manufacturers
  • Industrial Product Manufacturers
  • Distributors
Products
  • High-Strength Wrap Film
  • Biodegradable Packaging Film

Production Innovation Systems

Overview
Provides software supporting production efficiency improvements using the Daicel method.
Competitiveness
Proprietary production innovation know-how and IT technology
Customers
  • General Manufacturing
  • Process Industry Companies
  • Engineering Companies
Products
  • Production Management Software
  • Operation Optimization Systems

Bio and Environmental Materials

Overview
Provides advanced materials contributing to reduced environmental impact.
Competitiveness
Pioneer in next-generation bio-material development
Customers
  • Food Packaging Manufacturers
  • Eco-Material Developers
  • Agriculture-Related Companies
Products
  • Biodegradable Plastics
  • Biopolymers

Research Chemicals and Reagents

Overview
Provides high-quality chemicals optimized for research purposes.
Competitiveness
Strict quality control and customization capabilities
Customers
  • Universities and Research Institutions
  • Pharmaceutical Companies
  • Chemical Manufacturers
Products
  • High-Purity Chemicals
  • Functional Reagents

Inflator-Related Products

Overview
Develops advanced inflator products for airbags.
Competitiveness
World-unique mechanical inflator manufacturing technology
Customers
  • Automotive Parts Suppliers
  • Safety Device Manufacturers
Products
  • Mechanical Inflator Parts
  • Sensor-Linked Systems

Industrial Chemical Products

Overview
Deploys a diverse range of high-performance chemical products for industry.
Competitiveness
Broad product lineup covering multiple fields
Customers
  • Paint Manufacturers
  • Adhesive Companies
  • Electronic Materials Manufacturers
Products
  • Synthetic Resin Powder
  • Adhesive Raw Materials

Competitive Advantage

Strengths

  • World No. 2 share in tobacco filters
  • Japan's only cellulose manufacturer
  • Proprietary technology in mechanical airbag inflators
  • R&D capabilities backed by long history
  • Diverse business portfolio
  • Strong capital and business ties with Mitsui Group
  • Global production and research bases
  • Success of Daicel method in production innovation
  • High-quality and safety management systems
  • Strategic collaboration with Fujifilm
  • Versatile chemical material production capabilities
  • Active sustainability initiatives
  • Expanding global presence
  • Established long-term customer relationships
  • Stable financial base

Competitive Advantages

  • Market dominance as Japan's only cellulose acetate producer
  • World No. 2 scale and technology in tobacco filters
  • World's only manufacturer of mechanical airbag inflators
  • Achieved cost reduction and efficiency via Daicel production management
  • Strength in electronics through material supply collaboration with Fujifilm
  • Broad industrial applications with diverse chemical materials
  • Competitive edge from stable customer base and long-term transactions
  • Market differentiation through proactive eco-product development
  • Supply and sales leveraging global production network
  • Customer trust supported by advanced quality assurance
  • Meets diverse industry needs through multifaceted technology development
  • Stability in capital and operations backed by Mitsui Group
  • High safety and technology in pyrotechnics
  • Rapid supply response via extensive manufacturing sites
  • Innovation through continuous strengthening of R&D organization

Threats

  • Risk of cost increases from raw material price fluctuations
  • Potential business restrictions from stricter regulations
  • Technological innovation and price competition from global rivals
  • Increased production burden from stringent environmental regulations
  • Impact from overall tobacco industry contraction
  • Earnings deterioration risk from exchange rate fluctuations
  • Intensified competition from new materials and substitutes
  • Overseas business impact from geopolitical risks
  • Decline in production capacity due to labor shortages
  • Factory shutdown risk from natural disasters
  • Production delays from supply chain disruptions
  • Performance uncertainty from health crises like COVID-19

Innovations

2023: Medium-Term Strategy Update

Overview
Completed full withdrawal from defense-related businesses through growth strategy review.
Impact
Streamlined earnings structure and focus on new businesses

2022: Biodegradable Plastic Material Development

Overview
Launched new biodegradable plastic materials aimed at reducing environmental impact.
Impact
Strengthened lineup of eco-friendly products

2024: Production Innovation System Enhancement

Overview
Promoted maximum production efficiency and cost reduction by expanding Daicel method.
Impact
20% reduction in manufacturing costs, 3x productivity improvement

2021: New Electronic Materials Technology Introduction

Overview
Developed and introduced new production technology for high-performance polarizing plate protective films.
Impact
Market share expansion and improved production stability

2020: Automotive Inflator Improvements

Overview
Developed new mechanical inflators combining safety and durability.
Impact
Gained high praise from automakers, increased orders

Sustainability

  • Development and promotion of biodegradable plastics
  • Improved energy efficiency in manufacturing processes
  • Continuous improvement in waste recycling rates
  • Material development for reduced environmental impact
  • Coexistence with local communities and environmental conservation activities
  • Strengthened chemical substance risk management
  • Promotion of green procurement
  • Employee environmental awareness programs
  • Enhanced environmental audits of supply chains
  • Selection of sustainable procurement partners
  • Setting and monitoring CO2 emission reduction targets
  • Continuous strengthening of safety and health management