Sekisui Chemical

Basic Information

Stock Code
4204
Industry
Chemicals
Category Detail
Real Estate & Housing
Prefecture
Osaka Prefecture
Establishment Year
March 1947
Listing Year
April 1953
Official Website
https://www.sekisui.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Tama Home, YTL Corporation Berhad, Sumitomo Forestry, Sekisui House, Open House Group, Iida Group Holdings, Kei Ai Star Real Estate, Shin-Etsu Chemical, Fujifilm, Mitsubishi Heavy Industries, Fuji Housing, First Sumiken, Nac

Overview

Sekisui Chemical is a major resin processing manufacturer founded in 1947 and a leading company conducting extensive business domestically and internationally, centered on housing building materials and high-performance plastics.

Current Situation

Sekisui Chemical recorded consolidated sales of approximately 1.1579 trillion yen and net profit of approximately 37 billion yen for the fiscal year ended March 2022, maintaining solid performance. Its core Housing Company holds the 'Sekisui Heim' brand, accounting for half of sales and boasting a high market share in real estate and housing. In high-performance plastics, it holds 40% of the global share in automotive interlayer films and is actively developing overseas markets. The Environment & Lifelines Company and medical business are also expanding, promoting a diversified growth strategy. Emphasizing ESG management, it has been continuously selected as one of the world's 100 most sustainable companies, working to enhance corporate value. Addressing industry challenges such as government-induced recessions and rising raw material costs, it focuses on solar homes and remodeling. Going forward, it aims to strengthen its earnings base toward 2030 by accelerating technology development and new business investments domestically and internationally.

Trivia

Interesting Facts

  • Certified by Guinness World Records for the number of solar homes constructed.
  • Holds about 40% of the global market for automotive interlayer films.
  • First company in Japan to develop cellophane tape.
  • Developed and deployed housing unit construction method since the 1970s.
  • Operates the women's track and field team 'Sekisui Fairies'.
  • Globally recognized as a leader in ESG management.
  • Former hardball baseball team selected for Japan representation in urban tournaments.
  • Previously manufactured portable AM stereo radios.
  • Top shareholder of Sekisui House with strong influence in housing business.
  • 'Poly Bucket' is a registered trademark of subsidiary Sekisui Techno Seikei.
  • Pointed out for income concealment in dining expense accounting from 2012-2015.
  • Employee information leak incident disclosed in 2020.
  • Diverse product lineup spanning housing to medical and agricultural materials.
  • Numerous subsidiaries centered in Kansai, across Japan and overseas.
  • Employee stock ownership association exists to promote management participation.

Hidden Connections

  • Strengthened collaboration in housing market through capital and business ties with Sekisui House.
  • Technical cooperation and capital relations with same-root companies Asahi Kasei and Shin-Etsu Chemical.
  • Stable financially as a member of Sanwa Bank's Sansui-kai.
  • Has a track team that produced marathon gold medalist Naoko Takahashi.
  • Belongs to affiliate group with broad industry network.
  • Many products address social issues related to environment and sustainability.
  • Former baseball team represented Japan in Asian Baseball Championship.
  • Previously developed and sold portable LCD TVs and AM stereo radios.

Future Outlook

Growth Drivers

  • Expansion of demand for eco-friendly housing and materials
  • Increasing demand for lightweight, high-functional materials in automotive industry
  • Global growth strategy in medical and healthcare fields
  • Expansion of renewable energy business and product development
  • Active production and sales expansion in Asia and North America
  • Remodeling business utilizing digitalization and smart technologies
  • Investment attraction through corporate value enhancement focused on sustainability
  • Innovation in products and services amid strengthening ESG standards
  • Competitiveness enhancement via new material development and technological innovation
  • Growing needs for high-functional industrial and packaging materials
  • Global supply chain optimization
  • Manufacturing efficiency improvements using robotics and AI

Strategic Goals

  • Maintain domestic top position in cumulative solar home constructions
  • Achieve 50% global market share in automotive high-performance plastics
  • Realize over 60% global sales ratio
  • Achieve over 100 billion yen in new sales from medical and bio fields
  • Reduce CO2 emissions by 50% to lower environmental impact
  • Expand remodeling and solar housing businesses domestically and internationally
  • Continuously acquire world's highest ESG ratings
  • Annual R&D investment over 10 billion yen in new technologies and products
  • Achieve sustainable procurement across entire supply chain
  • Strengthen global talent development with diversity and inclusion

Business Segments

Building Materials / Housing Equipment

Overview
Provides building materials and equipment for detached homes and remodeling, supporting from construction to sales.
Competitiveness
Strong ties with housing manufacturers and pipe market share
Customers
  • Housing Manufacturers
  • Remodeling Contractors
  • Construction Companies
  • Real Estate Developers
  • Government Agencies
  • Equipment Contractors
  • Piping Contractors
  • Trading Companies
Products
  • Piping Materials
  • Architectural Resin Materials
  • Insulation / Fire-Resistant Building Materials
  • Waterproof Sheets
  • Housing Unit Construction Products
  • Remodeling Materials
  • Interior Work Materials
  • Solar Power-Related Housing Products

High-Performance Plastic Products

Overview
Provides high-performance materials as parts and raw materials for various industries, promoting global expansion.
Competitiveness
High global share in automotive interlayer films and cutting-edge technology development
Customers
  • Automakers
  • Aircraft Manufacturers
  • Electronics Manufacturers
  • Semiconductor Manufacturers
  • Building Equipment Manufacturers
  • Telecommunications Equipment Manufacturers
Products
  • Automotive Interlayer Films
  • Conductive Particle Materials
  • LCD Sealants
  • Reinforced Plastic Parts
  • Foamed Polyolefins
  • Aircraft Composite Materials

Infrastructure Materials / Environment

Overview
Supplies durable pipes and environmentally friendly materials for public facilities.
Competitiveness
Broad product lineup for infrastructure and overseas expansion
Customers
  • Water Utilities
  • Gas Companies
  • Railway Companies
  • Infrastructure Maintenance Companies
  • Environmental Businesses
Products
  • Vinyl Chloride Pipes
  • Synthetic Sleepers
  • Pipeline Rehabilitation Materials
  • Infrastructure Materials

Medical / Pharmaceuticals

Overview
Offers a wide range of products and contract services for medical sites and pharmaceutical industry.
Competitiveness
Technological strength in pharmaceuticals and test reagents with global responsiveness
Customers
  • Hospitals
  • Clinics
  • Pharmaceutical Companies
  • Medical Testing Institutions
  • Research Institutions
  • Medical Clinics
Products
  • Clinical Test Reagents
  • Vacuum Blood Collection Tubes
  • Pharmaceutical API Intermediates
  • Pharmaceutical Amino Acids
  • Drug Discovery Support Services
  • Analytical Instruments

Industrial Materials / Packaging

Overview
Provides materials for a wide range of industrial uses.
Competitiveness
Long experience in industrial materials manufacturing and diverse product lineup
Customers
  • Logistics Companies
  • Factories
  • Retailers
  • Food Industry
  • Agriculture-Related Businesses
Products
  • Agricultural Materials
  • Packaging Materials
  • Industrial Tapes
  • Daily Plastic Products

Environment / Energy-Related

Overview
Supports the energy sector with environmentally friendly products.
Competitiveness
Integration of solar housing technology and environmental materials
Customers
  • Energy Companies
  • Environmental Equipment Manufacturers
  • Renewable Energy Companies
Products
  • Solar Power Housing Materials
  • Environment-Related Plastic Materials
  • Insulation Materials

Electronics / IT-Related Materials

Overview
Supports displays and telecommunications equipment with cutting-edge electronic materials.
Competitiveness
Active overseas factory expansion and high technological capabilities
Customers
  • Electronics Manufacturers
  • IT Companies
  • Telecommunications Companies
Products
  • LCD Materials
  • Sealants
  • High-Functional Films

Construction Work Support

Overview
Primarily undertakes interior work for housing and commercial facilities.
Competitiveness
Flexible response to diverse customer needs
Customers
  • Construction Companies
  • Remodeling Companies
  • Interior Contractors
Products
  • Interior Work
  • Remodeling Materials
  • Repair / Maintenance Services

Automotive Industry Materials

Overview
Supplies world-top-share automotive resin products.
Competitiveness
Trust from high share and long track record
Customers
  • Automakers
  • Automotive Parts Suppliers
Products
  • Laminated Glass Interlayer Films
  • Interior Crosslinked Foam Materials

Housing Sales

Overview
Leads the market in housing sales including Sekisui House.
Competitiveness
Seamless collaboration with partner housing companies
Customers
  • Individual Customers
  • Housing Developers
Products
  • Detached Homes
  • Solar Homes

Agricultural Materials

Overview
Provides diverse materials and supplies for agriculture.
Competitiveness
Accumulated technology in specialized agricultural products
Customers
  • Agricultural Producers
  • Agricultural Corporations
Products
  • Agricultural Films
  • Fertilizers
  • Agricultural Plastic Materials

Packaging Materials

Overview
Manufactures high-quality packaging materials for packaging and logistics.
Competitiveness
Long-term manufacturing technology and market know-how
Customers
  • Manufacturers
  • Logistics
  • Retail
Products
  • Packaging Tapes
  • Packaging Sheets

Competitive Advantage

Strengths

  • Robust sales and production networks spanning Japan and overseas
  • Stable revenue base from diversified business operations
  • Global technological superiority in high-performance plastics
  • Proprietary unit construction technology in housing
  • Commitment to sustainability in environment and energy fields
  • Technological innovation through continuous R&D investment
  • Strategic partnership with Sekisui House
  • Market responsiveness from diverse product lineup
  • Global corporate ethics system emphasizing ESG management
  • High brand recognition and trust within the industry
  • Broad customer base across industries
  • Enhanced management participation awareness via employee stock ownership
  • Diverse business portfolio of consolidated subsidiaries
  • Stable asset base and strong net assets
  • Strengthened relationships with major corporate groups

Competitive Advantages

  • 40% global share in high-performance plastic automotive interlayer films
  • Guinness World Record for cumulative solar home constructions
  • Significant improvement in construction efficiency via proprietary housing unit method
  • Global responsiveness with multi-country environment and lifelines materials
  • Establishment of sustainable corporate brand based on ESG management
  • Risk diversification and inter-business synergies through diversification
  • Housing company-centered strategy emphasizing long-term relationships
  • World-class R&D infrastructure and intellectual property holdings
  • Business expansion through close collaboration with affiliates
  • Sound financial balance and stable profit margins
  • High quality and reliability in housing building materials
  • Product delivery power through diverse channels
  • Active overseas production facility expansion
  • Expansion of medical-related product lineup based on deep expertise
  • Adaptability to market needs over many years

Threats

  • Risk of continued raw material price surges
  • Uncertainty in housing business from Building Standards Law revisions
  • Global trade friction and tariff policy fluctuations
  • Increased product development burden from stricter environmental regulations
  • Accelerating technological innovation pace by competitors
  • Intensifying competition from local firms in overseas markets
  • Impact of exchange rate fluctuations on earnings
  • Shrinking domestic housing market trend
  • Compliance risks such as technology leakage
  • Vulnerability of production and supply chains to natural disasters
  • Intensifying competition for talent acquisition and development
  • Demand instability from economic fluctuations

Innovations

2024: Demonstration Experiment of Bendable Solar Cells

Overview
Conducting demonstration experiment of bendable solar cells in thermal power plant buildings with JERA and others.
Impact
Suggests new possibilities for solar power deployment.

2023: Selected for Global 100 via ESG Management Promotion

Overview
Selected for 6 consecutive years as one of the world's 100 most sustainable companies.
Impact
Enhances corporate value and brand trust.

2022: New Material Development in High-Performance Plastics

Overview
Developed and launched further lightweight materials for automobiles.
Impact
Maintains industry competitiveness and strengthens environmental response.

2021: Strengthening Contract Manufacturing in Medical Business

Overview
Expanded production capacity and quality control for pharmaceutical API intermediates.
Impact
Expands transactions and acquires new customers.

2020: Digitalization Introduction in Remodeling Business

Overview
Introduced AR-based remodeling proposal system to improve customer services.
Impact
Improves customer satisfaction and operational efficiency.

Sustainability

  • Selected for 6 consecutive years as one of the world's 100 most sustainable companies
  • Promotion of solar power homes and Guinness record holder
  • Cross-organizational improvements via ESG management promotion department
  • Strengthened development of high-functional materials with reduced environmental impact
  • Renewable energy promotion in collaboration with affiliates
  • Waste reduction and recycling initiatives
  • Diversity & inclusion promotion measures
  • Environmental protection activities in cooperation with local communities
  • Environmental and social risk assessment of supply chain
  • Setting and progress management of CO2 emission reduction targets