Toho Chemical Industry

Basic Information

Stock Code
4409
Industry
Chemicals
Category Detail
Chemicals & Chemical Products
Prefecture
Tokyo
Establishment Year
March 1938
Listing Year
May 1962
Official Website
https://toho-chem.co.jp/
TSE Information
TSE Information
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Other Companies
Jiolive G, Sanwa Yuka Kogyo, Nippon Seika, Matsumoto Yushi-Seiyaku, Nof, Shin-Nippon Rika, Daiichi Kogyo Seiyaku, Nikka Chemicals, Niitaka, Sanyo Chemical Industries, Nippon Seiro, Nippon Insulation, Tomita

Overview

Toho Chemical Industry is a long-established chemical company founded in 1938, specializing in surfactants as its main products, boasting advanced specialty solvent technology and a stable market share.

Current Situation

Toho Chemical Industry recorded standalone sales of approximately 39.1 billion yen and consolidated sales of approximately 41.5 billion yen in fiscal 2023, maintaining a stable revenue base. Centering on its flagship surfactant products, it holds high market shares in the specialty solvent and synthetic rubber additive markets, establishing a solid corporate position in chemical manufacturing. With ISO9001 and ISO14001 certifications, it maintains high standards in both quality management and environmental considerations, and has built an efficient production system utilizing factories and research facilities in Oihama, Chiba, Yokkaichi, and Tokuyama. It is actively pursuing product development focused on sustainability and initiatives to reduce environmental impact, contributing to the growth of sustainable chemical industries. Moving forward, it aims to expand environmentally compatible products and grow its share in global markets as strategic goals, continuing R&D investments to enhance competitiveness. Business diversification is advancing through major subsidiaries and affiliates, with a view toward steady mid- to long-term growth.

Trivia

Interesting Facts

  • Long-established chemical company with over 80 years of history since founding
  • Domestic top-class market share in the surfactant field
  • Early acquisition of ISO9001 and ISO14001, with robust quality and environmental management
  • Multiple production bases in Kanagawa, Chiba, Mie, and Yamaguchi
  • Has led the synthetic rubber additives market for many years
  • Aggressively pursuing business diversification through affiliates
  • Reputation for technology development in specialty solvents
  • Holds numerous domestic patents, maintaining technological superiority
  • High order stability due to long-term customer relationships
  • Mainly B2B products deeply involved in specific industries
  • Emphasizes collaboration with local communities and active CSR activities
  • High ratio of environmentally compatible products, earning high market evaluation
  • Advancing digitalization of manufacturing processes
  • Active in industry collaborations, academic societies, etc.
  • Veteran company listed on the Tokyo Stock Exchange in 1962

Hidden Connections

  • Mitsui Chemicals is a major shareholder, with close technological exchanges
  • Deep ties with Tomita and Jiolive Group in the industrial oils and surfactants market
  • Actively participating in environmental technology development through affiliates
  • Long-term transaction relationships with major domestic paint manufacturers
  • High evaluation in electronic component cleaning field due to proprietary solvent technology
  • Disaster risk dispersion through nationwide distribution of manufacturing sites
  • Early ISO14001 acquisition has embedded environmental awareness in corporate culture
  • Transactions with some automotive-related companies for industrial wax products

Future Outlook

Growth Drivers

  • Expansion of demand for eco-products due to strengthening environmental regulations
  • Stable demand in the industrial surfactant market
  • Promotion of functional chemical development through technological innovation
  • Demand for process efficiency accompanying industrial digitalization
  • Global rollout of environmentally compatible products
  • Increasing trend in products using renewable raw materials
  • Acceleration of new material development through industry-academia-government collaboration
  • Corporate stance emphasizing coexistence with local communities
  • Market share expansion in regulatory-compliant products
  • Advanced and stabilized supply chains
  • Risk diversification through diversified raw material procurement
  • Overall strength enhancement through synergy with affiliates

Strategic Goals

  • Achieve 70% sales ratio of environmentally compatible products
  • Realize consolidated sales exceeding 60 billion yen
  • Advanced collaboration of factories and research facilities domestically and internationally
  • 30% improvement in production efficiency through digitalization
  • Strengthen global expansion through overseas market share growth
  • ISO certification rollout to all business sites
  • Establishment of sustainable raw material procurement system
  • Systematic strengthening of community contribution activities
  • Secure over 20% sales composition ratio for new functional materials
  • Completion of integrated management system with affiliates

Business Segments

Industrial Chemical Manufacturing

Overview
Provides high-quality chemical products for industrial manufacturing processes, contributing to process efficiency and quality improvement.
Competitiveness
High technological expertise in specialty solvents and surfactants
Customers
  • Paint manufacturers
  • Electronic component manufacturers
  • Automotive parts factories
  • Synthetic resin manufacturers
  • Rubber manufacturers
Products
  • Surfactants
  • Specialty solvents
  • Synthetic rubber additives
  • Flame retardants
  • Rust preventives
  • Plating chemicals
  • Petroleum-based cleaners

Environmentally Compatible Product Supply

Overview
Supplies eco-friendly products compliant with strengthening environmental regulations, supporting customers' environmental impact reduction.
Competitiveness
ISO14001-certified environmental management system
Customers
  • Wastewater treatment companies
  • Environmental consultants
  • Renewable energy companies
Products
  • Environmentally friendly surfactants
  • Biodegradable solvents
  • Low-VOC products

Functional Materials Development

Overview
Develops new functional materials based on R&D capabilities and expands into multi-field markets.
Competitiveness
Proprietary research institute and diverse technology integration
Customers
  • Electronic materials manufacturers
  • Cosmetic raw material manufacturers
  • Pharmaceutical manufacturers
Products
  • High-function additives
  • Coating materials
  • Pharmaceutical raw material intermediates

Raw Material Supply and Logistics

Overview
Provides integrated support from raw material procurement to storage and transportation for efficient supply chains.
Competitiveness
Logistics optimization through affiliate collaboration
Customers
  • Raw material trading companies
  • Contract manufacturers
  • Related subsidiaries
Products
  • Chemical raw materials
  • Transportation and storage services

Safety Technology and Management Consulting

Overview
Provides consulting services on chemical safety management and environmental measures.
Competitiveness
Industry expertise-based specialization
Customers
  • General manufacturing industry
  • Environmental conservation companies
  • Local governments
Products
  • Safety management systems
  • Environmental impact assessment support

Competitive Advantage

Strengths

  • Established market share in the surfactant field
  • Long years of R&D and technology accumulation
  • Multi-location production and research system
  • Provision of high-quality, environmentally considerate products
  • Stable customer base
  • Vertical integration through affiliates
  • Quality and environmental management via ISO certifications
  • Strong product lineup
  • Abundant sales channels in Japan and overseas
  • Stable and experienced management team
  • Technology innovation through industry-academia-government collaboration
  • Solid financial foundation
  • Commitment to clean technology development
  • Risk diversification through business diversification

Competitive Advantages

  • Proprietary technology and high market share in specialty solvents
  • Flexible response to customer needs through a wide range of industrial chemical products
  • High reliability due to advanced quality control system
  • Leadership through early adoption and promotion of environmentally compatible products
  • Stable production system ensured by factories in Kanto, Tokai, and Kansai areas
  • Business efficiency improvement through collaboration with multiple affiliates
  • Secures continuous orders through long-term partnerships with customers
  • Strong development capabilities for new functional chemicals via R&D investment
  • Comprehensive environmental considerations via ISO14001 certification
  • High brand power in specialized products for specific industries
  • Robust logistics network stably meeting domestic demand
  • Superior regulatory compliance and risk management
  • Enhanced competitiveness through development of sustainable chemical products
  • High customer satisfaction and repeat order rate

Threats

  • Growth slowdown due to maturity of the domestic chemical market
  • Raw material price fluctuation risks
  • Cost increases from further strengthening of environmental regulations
  • Intensifying competition with overseas companies
  • Export/import restrictions due to international political and economic situations
  • Risk of failing to keep pace with the speed of technological innovation
  • Impact of natural disasters on production sites
  • Intensifying competition for talent acquisition
  • Impact of exchange rate fluctuations on performance
  • Threat from new entrants
  • Patent disputes and litigation risks
  • Supply chain disruption risks

Innovations

2024: Launch of new environmentally friendly surfactant product

Overview
Developed and successfully commercialized next-generation surfactants with high biodegradability and reduced environmental impact.
Impact
Contributes to improved wastewater environment at production factories

2023: Technological innovation in high-performance specialty solvents

Overview
Developed low-toxicity, high-efficiency specialty solvent technology for electronic component cleaning and introduced to market.
Impact
Market share expansion and improved customer satisfaction

2022: Production efficiency improvement through digital control

Overview
Enhanced manufacturing process automation and quality control using new IoT technology.
Impact
15% improvement in production efficiency and consistent quality

2021: Development of low-environmental-impact synthetic rubber additives

Overview
Developed environmentally friendly synthetic rubber additives, expanding adoption in various applications.
Impact
Contributes to improved environmental performance of customer products

2020: Development of recyclable wax products

Overview
Successfully developed new industrial waxes using renewable raw materials.
Impact
Strengthened sustainable product lineup

2025: Practical application of new functional coating materials

Overview
Planned launch of business for coating materials with excellent stain and moisture resistance.
Impact
Aims to acquire new customers in the industrial high-function materials market

2023: Introduction of energy-saving production equipment

Overview
Updated plant equipment with the latest energy-saving technology to reduce environmental impact.
Impact
20% reduction in annual CO2 emissions

2021: Strengthening of R&D structure

Overview
Further enhanced R&D capabilities through hiring of specialized personnel and introduction of latest equipment.
Impact
Accelerated pace of new product development

2022: Expansion of green chemical product line

Overview
Expanded environmentally compatible product lineup to improve proposals to clients.
Impact
Increased orders and improved market evaluation

2024: Launch of digital marketing

Overview
Expanded customer touchpoints through strengthened online sales and information dissemination.
Impact
New customer acquisition and improved sales efficiency

Sustainability

  • Strengthened environmental management through ISO14001 certification
  • Active development and promotion of biodegradable chemicals
  • Improved waste reduction and resource recycling rates
  • Improved energy efficiency and introduction of energy-saving equipment
  • Supply chain reforms to reduce environmental impact
  • Continuous participation in local environmental conservation activities
  • Promotion of sustainable raw material procurement
  • Employee environmental awareness training
  • Reduction of emissions and introduction of clean technologies
  • Issuance of CSR reports for transparency
  • Thorough implementation of green procurement policy
  • Strengthened environmental risk management system