Harima Chemicals Group

Basic Information

Stock Code
4410
Industry
Chemicals
Category Detail
Chemicals & Chemical Products
Prefecture
Tokyo
Establishment Year
November 1947
Listing Year
November 1985
Official Website
https://www.harima.co.jp/
TSE Information
TSE Information
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Overview

Harima Chemicals Group, founded in 1947, possesses Japan's only crude tall oil distillation plant and is a leading chemical materials company that globally develops businesses in resins, chemical products, papermaking chemicals, and electronic materials.

Current Situation

Harima Chemicals Group achieved net sales of 92.3 billion yen in the fiscal year ended March 2024, but recorded an operating loss of 200 million yen and a net loss exceeding 1.1 billion yen. In addition to its mainstay resins and chemical products sector, it operates three businesses—papermaking chemicals and electronic materials—both domestically and internationally, expanding its global sales network. Domestically, it operates Japan's only crude tall oil distillation plant at the Kakogawa Plant, producing high-quality tall rosin and fatty acid products. Following the acquisition of Momentive's rosin-related business in 2011, overseas expansion has accelerated, with bases in Europe, North America, and various parts of Asia. It also demonstrates strong commitment to environmental measures and sustainability, including the operation of biomass power generation facilities and the installation of multiple solar power plants. In the 2020s, it has focused on strengthening its electronic materials business and making overseas subsidiaries wholly owned to bolster its management foundation. Looking ahead, it aims to expand its global market share through technological innovation, backed by growing demand for tall oil-based products and growth in the papermaking and electronic materials industries. President Yoshihiro Hasegawa enjoys high international recognition, having received a knighthood from the Kingdom of Belgium, and is committed to enhancing corporate value through both technology and management.

Trivia

Interesting Facts

  • The company possesses Japan's only crude tall oil distillation plant.
  • In 2011, it acquired Momentive's rosin-related business in the US, strengthening overseas expansion.
  • Global company with manufacturing and research bases in more than 8 countries worldwide.
  • President Yoshihiro Hasegawa received the Leopold II Order of Merit from the Kingdom of Belgium.
  • Actively contributing to the environment through biomass power generation at manufacturing sites.
  • Translated and published books on pine chemistry, contributing to the dissemination of industry knowledge.
  • Has multiple papermaking chemical manufacturing bases in China, expanding in the Asian market.
  • Tall oil products are high-value materials also used in cosmetics and pharmaceutical raw materials.
  • Transitioned to a pure holding company structure in 2012, refreshing group management.
  • Established position as a high-reliability solder material manufacturer in electronic materials.
  • Partnered with Sweden's SunPine AB to establish annual production capacity of 20,000 tons of tall rosin.
  • Approximately 1,700 employees, with a stable employment base.
  • Listed on the Tokyo Stock Exchange Prime Market with capital of 10 billion yen.
  • Supplies essential materials to papermaking, chemicals, and electronic materials industries domestically and internationally.
  • Overseas bases span Asia, Europe, and North America, with effective global strategy.

Hidden Connections

  • Pine resin-derived chemical materials are closely related to multiple industries including papermaking and electronic materials.
  • Enhancing international competitiveness through partnerships with local companies in the US, Netherlands, Sweden, etc.
  • Environmental initiatives are deeply integrated into product development and energy production.
  • Major shareholders include many Hyogo Prefecture-related companies such as Hasegawa Kogyo and Matsukawa.
  • Management team receives high evaluation in Europe due to knighthood from the Kingdom of Belgium.
  • Holds significant market share in Japan's papermaking chemicals market.
  • Strengthening ties with Germany's Henkel in the solder materials business in electronic materials.
  • Impact of long-term business growth and expansion on regional economy through employment and industry collaboration.

Future Outlook

Growth Drivers

  • Increasing demand for environmentally friendly materials due to strengthened international environmental regulations
  • Expansion of demand for high-function papermaking chemicals from technological innovation in papermaking industry
  • Expansion of semiconductor and electronic equipment markets in electronic materials
  • Growth in environmentally friendly products from expansion of renewable energy-related equipment
  • Overseas sales growth from increasing papermaking and electronic materials demand in emerging markets
  • Progress in research and development for sustainable materials
  • Diversification of demand for high-value-added functional resins
  • Securing competitive advantage through strengthened global supply chain
  • Business efficiency improvement through digital transformation
  • Leveraging synergies in technology and markets through expanded international alliances
  • Increased investment in environmentally responsive products
  • Promotion of practical application of cutting-edge technologies in materials field

Strategic Goals

  • Double global sales compared to current levels
  • Increase ratio of renewable and environmentally friendly products to over 50%
  • Strengthen market share for major products domestically and internationally
  • Accelerate development of next-generation electronic materials technology to create new markets
  • Further expand contributions to regional society and environment
  • Build and transparize sustainable raw material procurement system
  • Increase annual R&D investment to promote technological innovation
  • Improve business efficiency through digitalization
  • Achieve revenue diversification through new businesses and product development
  • Strengthen employee capability development and achieve highest standards in safety and health

Business Segments

Papermaking Chemicals Business

Overview
Business that develops and provides a variety of chemicals supporting quality improvement and production efficiency in papermaking processes.
Competitiveness
Japan's only high-purity rosin raw material manufacturing technology
Customers
  • Papermaking manufacturers
  • Paper processors
  • Corrugated board manufacturers
  • Printing companies
  • Packaging materials manufacturers
  • Coating agent manufacturers
  • Packaging film manufacturers
  • Recycling companies
Products
  • Sizing agents
  • Paper strength agents
  • Coating agents
  • Paper barrier coating agents
  • Pitch control agents
  • Process improvement agents
  • General additives

Electronic Materials Business

Overview
Develops and provides high-reliability solders and resin materials centered on semiconductors and electronic equipment.
Competitiveness
Provision of high-purity materials based on long years of research and development
Customers
  • Semiconductor manufacturers
  • Electronic component manufacturers
  • Printed wiring board manufacturers
  • Electronic equipment assemblers
  • Automotive parts manufacturers
  • Telecommunications equipment manufacturers
  • Home appliance manufacturers
  • Precision machinery manufacturers
Products
  • Soldering materials
  • Printed wiring board materials
  • Brazing materials for heat exchangers
  • Electronic adhesives
  • Special coating agents

Resins and Chemical Products Business

Overview
Business division that supplies functional resins and processing raw materials to diverse industrial sectors.
Competitiveness
High-functionality chemical material manufacturing technology derived from pine resin
Customers
  • Printing ink manufacturers
  • Adhesive manufacturers
  • Synthetic rubber manufacturers
  • Paint manufacturers
  • Cosmetics raw material manufacturers
  • Pharmaceutical raw material manufacturers
  • Synthetic resin processors
Products
  • Resins for printing inks
  • Resins for pressure-sensitive adhesives
  • Emulsifiers for synthetic rubber
  • Functional resins
  • Rosin derivatives

Overseas Business Operations

Overview
International business division responsible for product supply and local production in Europe, America, and Asia markets.
Competitiveness
Strong market adaptability through close collaboration with local subsidiaries
Customers
  • Global chemical manufacturers
  • Import distributors
  • Overseas papermaking manufacturers
  • Local electronic equipment manufacturers
Products
  • Tall oil products
  • Electronic materials
  • Papermaking chemicals

Environment and Energy-Related Division

Overview
Business field providing products and technologies that contribute to reducing environmental impact.
Competitiveness
Product lineup utilizing biomass technology
Customers
  • Renewable energy facilities
  • Industrial waste processors
  • Environmental equipment manufacturers
Products
  • Materials for biomass power generation equipment
  • Environmentally friendly surfactants
  • Renewable resource-derived oils

Research and Development Services

Overview
Technology development and customer support services centered on the Central and Tsukuba Research Laboratories.
Competitiveness
Advanced chemical analysis technology and specialized knowledge
Customers
  • Group business companies
  • External companies
  • Industry-academia collaboration projects
Products
  • Product development consulting
  • Material evaluation services
  • Technical support

Contract Manufacturing and Processing Services

Overview
Provides flexible contract manufacturing and processing services to diverse customers.
Competitiveness
Multi-site production network and quality control
Customers
  • External chemical manufacturers
  • Small and medium-sized manufacturers
  • OEM customers
Products
  • Contract manufacturing
  • Custom resin processing
  • Packaging and logistics services

Logistics and Sales Support

Overview
Logistics support operations for efficient product delivery and sales promotion.
Competitiveness
Stable distribution network and management system
Customers
  • Group companies
  • Customer companies
  • Distribution companies
Products
  • Product delivery services
  • Inventory management
  • Customer services

Equipment and Plant Management

Overview
Technical services for operation, maintenance, and improvement proposals for manufacturing equipment.
Competitiveness
Continuous improvement capabilities by specialized engineers
Customers
  • Group manufacturing sites
  • External chemical plants
Products
  • Plant maintenance
  • Engineering services
  • Equipment upgrades

Overseas Subsidiary Management

Overview
Management functions providing operational guidance and support for overseas business entities.
Competitiveness
Abundant experience in multinational business operations
Customers
  • Group subsidiaries
  • Local corporations
Products
  • Management oversight
  • Regulatory compliance support
  • Local administrative operations

Product Safety and Quality Management

Overview
Management operations to maintain high product quality and ensure safety.
Competitiveness
Traceability through collaboration between manufacturing and research
Customers
  • Manufacturing sites
  • Sales departments
  • Customer companies
Products
  • Quality assurance
  • Safety data management
  • Environmental risk assessment

IT and Information Management Services

Overview
Provides IT solutions supporting business efficiency and data utilization.
Competitiveness
Possession of advanced digital management infrastructure
Customers
  • Internal business units
  • Affiliated companies
Products
  • Information system development
  • Cybersecurity
  • Data analysis support

Competitive Advantage

Strengths

  • Possesses Japan's only crude tall oil distillation plant
  • Global production and sales network
  • Wide product lineup for diverse industries
  • High-purity material manufacturing through advanced technology
  • Introduction of environmentally friendly manufacturing equipment
  • Long history and stable management foundation
  • Strong research and development organization and expertise
  • Active alliances and acquisitions with overseas companies
  • Stable supply system through multiple sites
  • Long-term transaction relationships with major customers
  • Risk diversification through diverse business operations
  • International recognition and leadership of management team
  • Competitive edge in papermaking and electronic materials sectors
  • Global deployment capability for high-quality products
  • Efforts in developing sustainable materials

Competitive Advantages

  • High-value-added product provision centered on Japan's unique tall oil refining technology
  • Strengthened overseas expansion through acquisition of Momentive's related business in the US
  • High market adaptability with local subsidiaries in Europe and Asia
  • Flexible response to customer needs with a broad product range
  • Development of environmentally friendly products including biomass and solar power generation
  • Sustained technological innovation through multiple manufacturing sites and laboratories
  • Stable management support environment from major shareholders
  • Differentiation through high-reliability materials in electronic materials
  • Know-how in raw material procurement and quality control accumulated over many years
  • Consistent business development based on group management strategy
  • Maintenance of high product safety standards and high customer satisfaction
  • Risk hedging leveraging global network
  • Specialized technical capabilities in industrial chemicals
  • Superior business operations compliant with environmental regulations
  • Resilience to market fluctuations through product diversification

Threats

  • Risk of rising raw material prices and unstable supply
  • Declining demand due to contraction of domestic papermaking industry
  • Intensifying technological innovation and price competition from overseas rivals
  • Increased manufacturing costs from stricter environmental regulations
  • Risk of profit deterioration due to exchange rate fluctuations
  • Market volatility from global economic uncertainty
  • Technology obsolescence from delays in new material development
  • Impact on overseas operations from geopolitical risks
  • Risk of production site damage from natural disasters
  • Potential secondary impact from crude oil price fluctuations
  • Performance impact from changes in customer purchasing trends
  • Risk of penalties or credit decline from delayed regulatory compliance

Innovations

2024: Completion of Mill-Sem Plant at Kakogawa Plant

Overview
Completed the state-of-the-art mill-sem plant, improving manufacturing efficiency and product quality.
Impact
Contributes to 20% increase in production capacity and product diversification

2023: Development of proprietary technology in electronic solder materials business

Overview
Developed and commercialized new technology for high-reliability, low-environmental-impact solder materials.
Impact
Gained high evaluation from customers and contributed to market share expansion

2022: Acquisition of Henkel's solder materials business

Overview
Acquired Henkel's solder materials business in Germany, strengthening product lineup.
Impact
Successfully improved product supply capabilities in the European market

2021: Increase in stake in SunPine AB

Overview
Acquired additional shares in Sweden's tall rosin producer SunPine AB, making it an equity-method affiliate.
Impact
Strengthened stable raw material procurement base and technological collaboration

2020: Start of biomass power generation facility operations

Overview
Started operations of biomass power generation facility in Takasago City, Hyogo Prefecture, promoting environmental load reduction.
Impact
Contributes to CO2 reduction and improved energy efficiency

Sustainability

  • Introduction and operation of biomass power generation facilities
  • Utilization of renewable energy through operation of multiple solar power plants
  • Development and commercialization of environmentally friendly surfactants
  • Ongoing efforts to reduce CO2 emissions in manufacturing processes
  • Strengthening sustainability in raw material procurement
  • Improvement in waste recycling and utilization efficiency
  • Continued research into technologies that reduce environmental impact
  • Initiatives for green logistics
  • Product lifecycle assessment and improvement activities
  • Strict compliance with environmental regulations