Kodama Chemical Industry

Basic Information

Stock Code
4222
Industry
Chemicals
Category Detail
Auto Parts
Prefecture
Tokyo
Establishment Year
March 1946
Listing Year
July 1962
Official Website
https://www.kodama-chemical.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
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Overview

Kodama Chemical Industry is a chemical manufacturer established in 1946, with its main business in synthetic resin processing for housing equipment and automotive parts, and is one of the leading specialized companies in the industry headquartered in Tokyo.

Current Situation

Kodama Chemical Industry recorded consolidated sales of approximately 17.8 billion yen in the fiscal year ended March 2020, but also posted a net loss of about 400 million yen in the same period and is focusing on financial improvement. In the housing equipment sector, it has strengths in manufacturing resin parts such as unit baths and vanity cabinets. In the automotive parts sector, it produces interior and exterior parts like bumpers at its Thai factory to maintain competitiveness. It has strengthened its business foundation through reorganization of overseas bases and equipment in the past, and since 2020, it has been improving its capital structure using business regeneration ADR. Technically, it is advancing resin processing sophistication, developing environmentally friendly products, and addressing sustainability. Moving forward, it aims for stable growth by responding to domestic and international automotive industry trends, while focusing on diversification and product quality improvement. It has resolved capital deficiency through management refresh and new capital injection, and continues to strengthen its business foundation. Introduction of the latest factory management technology and efficiency improvements at overseas factories are underway, with expectations for medium- to long-term enhancement of corporate value.

Trivia

Interesting Facts

  • Kodama Chemical Industry was established in 1946 and has over 70 years of history.
  • It was formerly part of the Mitsubishi Chemical Group.
  • It has a dedicated automotive parts production factory in Thailand.
  • It applied for business regeneration ADR in 2020 and achieved reconstruction.
  • It is renowned as a major supplier of unit bath parts for housing equipment.
  • It possesses a variety of plastic processing technologies.
  • Headquartered in Chiyoda-ku, Tokyo, it operates multiple factories nationwide.
  • Paid-in capital is 100 million yen, positioning it as a mid-to-lower-tier manufacturer.
  • It focuses on core businesses while repeatedly undergoing business reorganizations.
  • It has a unique business structure that also includes industrial equipment sales.

Hidden Connections

  • The relationship with the former Mitsubishi Resin is inherited not only in capital alliance but also in technology.
  • Deep transactions with unit bath-related companies for housing, closely linked with the housing construction industry.
  • Strong ties with Thailand's automotive industry, holding an important position in the local market.
  • Has achieved business foundation reconstruction with support from major financial institutions.
  • Advanced synthetic resin processing technology is highly evaluated in the automotive interior industry.
  • Significantly reduced overseas business risks by selling its Indonesian local subsidiary.
  • Aiming for management soundness through factory consolidation and production efficiency improvements.
  • Multi-faceted product deployment capable of responding to parts demand fluctuations across various industries.

Future Outlook

Growth Drivers

  • Increased demand from expansion of Japan's domestic housing renovation market
  • Increased parts demand accompanying automotive production recovery in Asia
  • Acceleration of market shift to environmentally friendly resin products
  • Improved production efficiency through factory automation and digitalization
  • New product acquisition through development of high-functional materials
  • Product differentiation strategy based on sustainability
  • Stable orders through maintenance and expansion of major customer base
  • Advancement of resin processing technology in domestic and international markets
  • Stabilization of financial foundation through strengthened capital structure
  • Risk diversification effects from diversified business deployment
  • Efforts in energy conservation in manufacturing processes and reduction of environmental impact
  • Ongoing technological innovation through R&D investment

Strategic Goals

  • Expand domestic market share in housing equipment and automotive parts
  • Increase environmentally friendly products to over 30% of sales
  • Strengthen cost competitiveness through optimization of overseas production bases
  • Achieve 30% improvement in production efficiency through digital factories
  • Achieve annual sales of 25 billion yen and establish stable profitable management
  • Strengthen acquisition of international certifications related to sustainability
  • Expand into new business areas and promote diversification
  • Maintain R&D investment at over 5% of sales
  • Strengthen competitiveness through employee technical training and talent development
  • Promote product innovation through broad industry collaborations

Business Segments

Plastic Parts for Housing Equipment

Overview
Provides resin parts combining durability and design for the housing industry.
Competitiveness
Abundant resin processing technology and diverse equipment lineup
Customers
  • Housing construction companies
  • Housing equipment manufacturers
  • Renovation contractors
  • Building materials trading companies
Products
  • Unit bath interior parts
  • Vanity cabinets
  • Toilet and piping parts
  • Residential resin panels

Automotive Parts Manufacturing

Overview
Utilizes Thai local factories to manufacture automotive resin exterior and interior parts.
Competitiveness
Low-cost, high-quality production system and utilization of overseas production bases
Customers
  • Automotive manufacturers
  • Automotive parts manufacturers
  • Overseas automotive factories
  • Major automotive dealers
Products
  • Bumpers
  • Interior and exterior panels
  • Seat belt parts
  • Automotive resin moldings

Resin Parts for Industrial Machinery

Overview
Provides high-functional plastic products in the industrial machinery field to achieve durability.
Competitiveness
Precision molding technology and custom planning capabilities
Customers
  • Industrial machinery manufacturers
  • Electrical equipment manufacturers
  • Electronics companies
  • Plant equipment companies
Products
  • Heat-resistant plastic products
  • Machinery resin parts
  • Corrosion-resistant parts
  • Resin for conveyor belts

Products for Construction Materials and Equipment

Overview
Produces and supplies functional resin parts for housing equipment in the construction materials market.
Competitiveness
Development capabilities responsive to market needs and rapid delivery system
Customers
  • Construction materials manufacturers
  • Housing equipment distributors
  • Pipe trading companies
  • Interior construction companies
Products
  • Housing equipment resin products
  • Toilet and sink parts
  • Resin pipes for piping
  • Thermoplastic moldings

Eco-Friendly Product Development

Overview
Promotes development and provision of products using environmentally considerate materials.
Competitiveness
Technical capabilities in material development and optimization of manufacturing processes
Customers
  • Automotive manufacturers
  • Housing equipment companies
  • Environmental product development companies
Products
  • Recycled resin products
  • Biomass resin parts

Thermoplastic Molding Machinery Manufacturing

Overview
Manufactures and sells molding, heating, and stretching machines for plastic processing.
Competitiveness
Provision of high-performance machines through proprietary development technology
Customers
  • Manufacturers
  • Machinery sales agents
  • Plastic processors
Products
  • Molding machines
  • Heating equipment
  • Stretching devices

Industrial Plastic Material Supply

Overview
Stably supplies resin materials for various industries.
Competitiveness
Diverse resin processing technologies and reliable quality control
Customers
  • Plastic manufacturers
  • Building materials companies
  • Automotive parts manufacturers
Products
  • Reinforced plastic products
  • Plastic foam materials
  • Conveyor nets
  • Resin belts

Resin Parts for Electrical Equipment

Overview
Provides high-functional resin parts for the electrical equipment field.
Competitiveness
Precision molding technology and applicability of high heat-resistant materials
Customers
  • Home appliance manufacturers
  • Electronic equipment manufacturers
  • Industrial electrical equipment manufacturers
Products
  • Heat-resistant resin moldings
  • Insulating parts
  • Molded parts for electronic components

Logistics Parts and Packaging Materials

Overview
Manufactures highly durable resin products for the logistics industry.
Competitiveness
Product lineup that balances lightweight design and impact resistance
Customers
  • Logistics companies
  • Packaging material manufacturers
  • E-commerce companies
Products
  • Resin packaging materials
  • Container parts
  • Plastic pallets

Home Appliance Parts Manufacturing

Overview
Manufactures various resin molded parts for the home appliance field.
Competitiveness
High production technology and delivery responsiveness
Customers
  • Home appliance manufacturers
  • Contract manufacturers
Products
  • Refrigerator resin parts
  • Air conditioner molded parts
  • Washing machine parts

OEM/ODM Business

Overview
Deploys contract manufacturing services tailored to customer needs.
Competitiveness
Flexible development responsiveness and quality management system
Customers
  • Various manufacturers
  • Sales trading companies
Products
  • Contract resin processing
  • Product design collaboration

Prototyping and Development Support Services

Overview
Provides prototyping and technical support for new product development.
Competitiveness
Rapid and high-precision response through multi-technology integration
Customers
  • R&D institutions
  • Small and medium enterprises
  • Large manufacturers
Products
  • Prototype manufacturing
  • Processing technology consulting

Competitive Advantage

Strengths

  • Advanced resin molding technology
  • Diverse product lineup spanning housing and automotive sectors
  • Flexible production system with bases in Japan and overseas
  • Long-accumulated experience in industrial equipment sales
  • Technical capabilities to meet diverse customer needs
  • Stable capital base supported by major shareholders
  • Strengthened business foundation through various business reorganizations
  • Improved factory utilization rates and thorough quality control
  • Promotion of environmentally friendly product development
  • Business support through large-scale consolidated workforce
  • Fundraising capabilities through collaboration with financial institutions
  • Accumulated know-how in resin parts for industrial machinery

Competitive Advantages

  • Rare business structure handling both housing and automotive parts, providing customer diversification as a strength
  • Achieves international competitiveness and low-cost production through overseas production (Thai factory)
  • Maintains a reliable customer base from long-term transaction relationships
  • Capable of providing integrated technical services from product design to mass production
  • Achieved financial soundness post-capital reconstruction and built a stable management foundation
  • Deep technological accumulation in resin processing and customization capabilities
  • Established distribution network through sales track record in diverse industrial machinery fields
  • Actively developing and launching environmentally friendly products
  • Achieves production adjustment capabilities and risk diversification through multi-factory operations
  • Balanced business continuity and financial improvement through business regeneration ADR application
  • Expanding housing-related business through product deployment in construction materials market
  • Possesses multiple strong brands to enhance market recognition

Threats

  • Risk of fluctuations in parts demand due to electrification and new materials in the automotive industry
  • Cost increase pressure from resin raw material price fluctuations
  • Intensifying competition from increasing new entrants
  • Political and economic risks related to overseas production bases
  • Burden of reviewing products and production processes due to strengthened environmental regulations
  • Risk of impact from global supply chain disruptions
  • Increasing burden of equipment investment for new technology introduction
  • Risk of changes in customer purchasing policies or demand decline
  • Impact of exchange rate fluctuations on earnings structure
  • Production and logistics delays due to COVID-19 and other pandemic expansions
  • Decline in development and production capabilities due to engineer shortages
  • Uncertainty in export environment due to economic fluctuations in overseas markets

Innovations

2023: Development of Environmentally Friendly Recycled Resin Products

Overview
Developed automotive bumper parts using recycled plastic materials to reduce environmental impact.
Impact
Expansion of environmentally friendly product line, strengthening customer base

2022: Introduction of High-Performance Heat-Resistant Resin Materials

Overview
Adopted new materials with high heat and wear resistance for industrial machinery parts to improve performance.
Impact
Increased orders through enhanced product competitiveness

2021: Factory Automation Promotion Project

Overview
Achieved advanced production efficiency and quality control through automation and IoT of production lines.
Impact
20% improvement in factory utilization rate, cost reduction

2020: Patent Acquisition for New Resin Molding Technology

Overview
Applied for patent on technology to enhance post-molding impact resistance, expanding intellectual assets.
Impact
Strengthened technological foundation for competitive advantage

Sustainability

  • Promoting resource circulation through active use of recycled resins
  • Advancing factory energy conservation to reduce CO2 emissions
  • Developing products compliant with environmental regulations and thorough safety management
  • Building product collection and reuse systems
  • Environmental awareness activities in collaboration with local communities