Moriroku

Basic Information

Stock Code
4249
Industry
Chemicals
Category Detail
Auto Parts
Prefecture
Tokyo
Establishment Year
March 1916
Listing Year
December 2017
Official Website
https://www.moriroku.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
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Overview

Moriroku is Japan's oldest chemical specialty company, founded in 1916, and a global leader in manufacturing automotive resin parts and chemical trading.

Current Situation

Moriroku recorded consolidated net sales of approximately 145.6 billion yen and operating profit of 5.7 billion yen for the fiscal year ended March 2024, with overseas sales accounting for about 70% of total sales as a global enterprise. Automotive resin processed products are its mainstay, providing stable supply to various automakers including Honda. The chemical business covers a wide range from fine chemicals to electronic components, serving diverse customer segments. It has aggressively expanded overseas into North America and Asia, with production bases deployed globally. It positions climate change response as its top priority issue, endorses TCFD recommendations, and strives to reduce environmental impact. Moving forward, based on organizational restructuring via absorption-type split-off, it aims to strengthen overall capabilities by integrating trading and manufacturing functions, advancing growth strategies toward 2030. Through sustainable management, it contributes to solving social issues and establishes competitive advantages with quality and technological strength.

Trivia

Interesting Facts

  • Founded in 1663, Japan's oldest chemical specialty company.
  • Company name named by the seventh-generation founder from the family business name.
  • Long-term collaboration with Honda in automotive resin parts.
  • Owns more than 20 affiliates in North America and Asia.
  • Employees participate in Tokushima's local culture 'Awa Odori'.
  • Focuses on climate change response as a TCFD endorser.
  • Integrating trading and manufacturing via absorption split-off in 2025.
  • Hired wheelchair tennis player Tomoya Shiro as first athlete employee.
  • Contributes to local forest creation for environmental conservation.
  • Diverse products from automotive interior/exterior parts to chemical trading functions.
  • Major factories consolidated in Kanto, Mie, and Gunma.
  • Oversees production subsidiaries worldwide for global expansion.
  • Long history of overseas market entry since the 1930s.
  • Provides flexible contract processing services.
  • Deploys diversified business model contributing to management stability.

Hidden Connections

  • One of the most important suppliers of resin parts for Honda's domestic motorcycles.
  • Employees participate in Tokushima Prefecture's local culture 'Awa Odori', closely linked with local community.
  • Early endorsement of TCFD, leading climate change response.
  • Forms global value chain in collaboration with numerous overseas subsidiaries.
  • Welcomed wheelchair tennis player Tomoya Shiro as first athlete employee, strengthening social contribution.
  • Creates new market opportunities through business integration of chemical wholesale and manufacturing.
  • Actively participates in local environmental conservation activities in Tokushima, focusing on CSR.
  • Actively operates domestic and international R&D bases to strengthen quality and technology.

Future Outlook

Growth Drivers

  • Expansion of resin parts demand in the global automotive market
  • Aggressive business development in Asia and North America
  • Increased demand for eco-materials due to stricter environmental regulations
  • Advancement of sustainability-compliant product development
  • Market expansion through strengthened chemical trading functions
  • Product differentiation and higher value addition using new technologies
  • Efficient management foundation building through organizational restructuring
  • Productivity improvement and cost reduction via digitalization
  • Rapid response to diverse customer needs
  • Ensuring stable supply systems domestically and internationally

Strategic Goals

  • Maintain and improve overseas sales ratio over 70%
  • Achieve 30% CO2 emission reduction, contributing to a decarbonized society
  • Over 50% ratio of high-value-added products through new technology introduction
  • Realize environmental impact reduction across the entire supply chain
  • Deepen symbiotic sustainable management with local communities
  • Expand global market share in resin molded parts
  • Expand sustainable procurement systems and green products
  • Realize smart factories utilizing digital technologies
  • Promote diverse talent utilization and workstyle reforms
  • Ensure sound financial foundation accompanied by improved profitability

Business Segments

Automotive Parts Manufacturing

Overview
Engages in manufacturing high-quality resin parts for automakers.
Competitiveness
Long-term strong partnership with Honda Motor Co., Ltd.
Customers
  • Honda Motor Co., Ltd.
  • Toyota Motor Corporation
  • Nissan Motor Co., Ltd.
  • Suzuki Motor Corporation
  • Mazda Motor Corporation
  • Honda Motorcycle Division
  • Automotive Parts Suppliers
Products
  • Resin Molded Bumpers
  • Interior Panels
  • Seat Adjuster Parts
  • Exterior Covers
  • Safety Parts (Airbag Parts)

Chemical Wholesale and Distribution

Overview
Handles intermediate distribution of basic chemicals and derivatives domestically and internationally.
Competitiveness
Broad chemical handling and responsiveness to customer needs
Customers
  • Chemical manufacturers across general manufacturing
  • Electronic device manufacturers
  • Surface treatment companies
  • Automotive parts manufacturers
  • Daily materials manufacturers
Products
  • Fine Chemicals
  • Coating Agents
  • Electronic Materials
  • Resin Materials
  • Industrial Chemicals

Contract Processing Services

Overview
Conducts contract processing business to meet diverse customer demands.
Competitiveness
Advanced manufacturing technology and diverse production equipment
Customers
  • Chemical manufacturers
  • Electronic component manufacturers
  • Automotive parts manufacturers
  • Research and development institutions
Products
  • Resin Molding Contract
  • Functional Coating Processing
  • Chemical Blending
  • Prototype Development Support

Overseas Business Expansion

Overview
Aggressive market expansion in North America, China, and Asia.
Competitiveness
Global business network and multilingual support
Customers
  • North American automakers
  • Asian chemical companies
  • Local sales agents
  • International supply chains
Products
  • Automotive Resin Parts
  • Chemical Wholesale
  • Production and Technical Support

Research and Development and Technical Support

Overview
R&D and technical support services supporting technological innovation.
Competitiveness
Collaboration between technical research institute and expanding development centers
Customers
  • Internal manufacturing divisions
  • Customer manufacturers
  • Collaborating research institutions
Products
  • New Resin Material Development
  • Product Design Support
  • Technical Consulting

Competitive Advantage

Strengths

  • Long history and solid trust
  • Strong collaboration with Honda
  • Global production and sales system
  • Diverse product lineup
  • Sustainability management endorsing TCFD
  • High technological capability and quality control
  • Multi-site domestic and international production network
  • Synergy effects with chemical trading functions
  • Broad customer base
  • Stable financial foundation

Competitive Advantages

  • Strong position in the domestic automotive resin parts market
  • Rapid customer response utilizing overseas production bases
  • Expertise and sales power in a wide range of chemical fields
  • Response to diverse customer needs through contract processing services
  • Quality assurance and technological accumulation from years of experience
  • Product development and operations emphasizing environmental considerations
  • Effective support system for multinational corporations
  • Product differentiation through integration with in-house developed technologies
  • Stable orders based on long-term customer relationships
  • Track record in multiple local markets

Threats

  • Impact on automotive industry from global semiconductor shortages
  • Rising raw material costs due to resource price fluctuations
  • Increased operational burden from stricter environmental regulations
  • Intensifying competition with global rivals
  • Foreign exchange fluctuation risks
  • Regulations and trade barriers in emerging markets
  • Challenge of keeping pace with rapid technological innovation
  • Supply chain disruption risks
  • Market share loss to new entrants
  • Risks to production sites from natural disasters

Innovations

2023: Organizational Restructuring to Integrate Trading and Manufacturing Functions

Overview
Absorbed and merged production and chemical business divisions into Moriroku Co., Ltd. to achieve integrated management.
Impact
Contributes to business efficiency and optimal allocation of management resources

2022: Enhanced Information Disclosure Based on TCFD

Overview
Incorporated climate change response into management strategy and promoted information disclosure.
Impact
Contributes to enhancing corporate value and gaining investor trust

2021: Expansion and Integration of Overseas Production Bases

Overview
Strengthened efficient production system through mergers and new factory establishments in the US and Asia.
Impact
20% increase in production capacity and cost reduction

2020: Development of New Automotive Resins

Overview
Successfully developed next-generation resin materials with improved heat and durability resistance.
Impact
Significant improvement in product competitiveness

Sustainability

  • Climate change response positioned as top priority issue
  • Participation in forest creation projects in Tokushima Prefecture
  • Setting and progress management of CO2 emission reduction targets
  • Promotion of green procurement
  • Improvement of waste recycling rate
  • Promotion of low-environmental-impact product development
  • Continuous acquisition and renewal of ISO14001
  • Strengthening environmental measures across the supply chain
  • Employee environmental awareness programs
  • Ensuring transparency through sustainability reports