Kawakami Paint

Basic Information

Stock Code
4616
Industry
Chemicals
Category Detail
Chemicals & Chemical Products
Prefecture
Hyogo Prefecture
Establishment Year
January 1945
Listing Year
July 1953
Official Website
http://www.kawakami-paint.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Dainichi Seika Color & Chemicals, Kawaguchi Chemical, Dai Nippon Toryo, Nippon Paint Holdings, Kansai Paint, Chugoku Marine Paints, Fujikura Kasei, SK Kaken, DIC, Sakata Inx, artience, Asahi Chemical, Kuro Ko

Overview

Kawakami Paint is a mid-sized paint manufacturer headquartered in Amagasaki City, Hyogo Prefecture, established in 1945. It holds the top domestic market share in the motorcycle paint sector and widely engages in technology licensing as a subsidiary of Mitsui & Co.

Current Situation

Kawakami Paint recorded consolidated sales of approximately 5.7 billion yen and operating profit of approximately 240 million yen in the fiscal year ending November 2018, maintaining a solid business foundation. It holds the top market share in Japan for motorcycle paints, its main product, and has a robust supply system for paints used in home appliances and construction machinery. With three domestic factories, it produces high-quality paints and is expanding sales channels to Southeast Asian countries through technology licensing. Technical collaborations with companies such as Ashland Chemical support product development capabilities, and it also provides powder coating production technology to overseas firms. The company is advancing initiatives in sustainable coating technologies and measures to reduce environmental impact. Following its listing on the Nagoya Stock Exchange Main Market, its strategy to enhance corporate value is clear. Moving forward, it aims to promote higher value-added paint products, overseas expansion, and strengthened collaboration with local companies.

Trivia

Interesting Facts

  • Holds top share in Japan for motorcycle paints
  • Established company that began domestic production of enamel and varnish in 1901
  • Aggressively expanding overseas and technical collaborations under Mitsui & Co.
  • Provides powder coating manufacturing technology to multiple overseas companies
  • Regional contributor deploying advertising billboards inside Hanshin Koshien Stadium
  • Strength in functional paints such as heat and abrasion resistance
  • Headquarters and factory in Amagasaki City, Hyogo Prefecture, for stable production
  • Expanding UV-curable paint business through technology introduction
  • Achieved listing on Nagoya Stock Exchange Main Market in 2024
  • Provides technical support in overseas powder coating markets
  • Product lines accommodating diverse customer needs
  • Mid-sized player in paint industry with original technologies
  • Early initiatives in environmentally compliant product development
  • Reputation for supplying paints using high-quality materials
  • Past technology licensing record in countries including Russia and Thailand

Hidden Connections

  • Leverages Mitsui & Co.'s global network to support overseas expansion
  • Competitor to Kansai Paint while collaborating in some businesses
  • Advertising in Hanshin Koshien Stadium symbolizes regional commitment
  • Influencing Southeast Asia paint market through powder coating technology licensing
  • Experience in product development collaborating with domestic administrative authorities for environmental compliance
  • Strong technical ties with major Western companies despite being mid-sized domestically
  • One of the historic companies contributing to Japan's motorcycle industry development
  • Major shareholders include financial institutions such as Mizuho Trust and Sumitomo Life Insurance

Future Outlook

Growth Drivers

  • Expansion of demand for high-function paints in motorcycle market
  • Increased demand for eco-paints compliant with strengthened environmental regulations
  • Expansion of overseas markets centered on Southeast Asia
  • Technology improvements and new customer development in powder coatings
  • Increased demand for higher value-added architectural and industrial paints
  • Active efforts in sustainable product development
  • Manufacturing efficiency improvement utilizing digital technology

Strategic Goals

  • Achieve over 70% ratio of eco-products
  • Expand overseas sales to over 30% of total sales
  • Global share expansion through powder coating technology licensing
  • Strengthen revenue base in industrial machinery paints
  • Build new product lineup through technical collaborations
  • Establish sustainable production technologies
  • Maximize corporate value on Nagoya Stock Exchange Main Market
  • Optimize product lifecycle and reduce waste
  • Expand environmental protection activities in collaboration with local communities
  • Improve sales efficiency through digitalization

Business Segments

Motorcycle Paint Business

Overview
Manufactures and supplies top-share motorcycle paints in Japan.
Competitiveness
Utilizing high durability performance and quick-drying technology
Customers
  • Motorcycle Manufacturers
  • Motorcycle Parts Manufacturers
  • Motorcycle Dealers
  • Overseas Distributors
Products
  • Phthalic Resin Paint
  • Heat-Resistant Clear Paint
  • Metallic Coat
  • Rust-Preventive Paint
  • UV-Curable Paint

Industrial Machinery Paint Business

Overview
Provides highly durable paints for industrial machinery.
Competitiveness
High-function paint development through technical collaborations
Customers
  • Construction Machinery Manufacturers
  • Agricultural Machinery Manufacturers
  • Machine Tool Manufacturers
  • Industrial Machinery Manufacturers
Products
  • Powder Coating
  • Weather-Resistant Rust-Preventive Paint
  • Thermosetting Paint
  • Special Function Paint

Architectural Related Paint Business

Overview
Widely manufactures functional paints for buildings.
Competitiveness
Rapid response to environmental regulations
Customers
  • Construction Companies
  • Prefab Housing Manufacturers
  • Construction Contractors
  • Renovation Companies
Products
  • Waterproof Paint
  • Weather-Resistant Paint
  • Interior Paint
  • Environmentally Compliant Paint

Powder Coating Technology Licensing

Overview
Overseas licensing of powder coating production technology.
Competitiveness
Technological capabilities supporting local production in three countries
Customers
  • Overseas Paint Manufacturers
  • Powder Coating Manufacturers
Products
  • PCM Powder Coating
  • Technical Guidance
  • Production Technology Support

Home Appliance and Electronics Paint Business

Overview
Enhances product durability with high-function paints.
Competitiveness
Coating film formation technology suitable for high-precision processing
Customers
  • Home Appliance Manufacturers
  • Electronics Assembly Companies
  • Parts Suppliers
Products
  • Heat-Resistant Paint
  • Insulating Paint
  • UV-Curable Paint

Maintenance Paint Provision

Overview
Supplies long-life paints for maintenance applications.
Competitiveness
Utilization of technologies extending service life
Customers
  • Factory Maintenance Departments
  • Building Maintenance Management Companies
Products
  • Rust-Preventive Paint
  • Anti-Corrosion Paint
  • Weather-Resistant Top Coat

Environmentally Compliant Paint Business

Overview
Develops paint products compliant with environmental standards.
Competitiveness
Product deployment promptly responding to environmental regulations
Customers
  • Government Agencies
  • Major Construction Companies
  • Environmentally Conscious Companies
Products
  • Low-VOC Paint
  • Lead-Free Paint
  • Eco-Certified Paint

Special Function Paint Development

Overview
Special function paints meeting industrial needs.
Competitiveness
Multi-function paint development capabilities through partnerships
Customers
  • Special Industrial Fields
  • Research Institutions
Products
  • Heat-Resistant Paint
  • Conductive Paint
  • Flame-Retardant Paint

Overseas Market Expansion Support

Overview
Technical support and sales expansion in overseas markets.
Competitiveness
Local production support and technology transfer
Customers
  • Southeast Asia Motorcycle Market
  • Local Distributors
Products
  • Phthalic Resin Paint for Motorcycles
  • Industrial Paints

Powder Coating OEM Supply

Overview
OEM provision of customized powder coatings.
Competitiveness
Flexibility in compounding technology and quality control
Customers
  • Domestic and Overseas OEM Manufacturers
  • Industrial Manufacturers
Products
  • Powder Coating Manufacturing
  • Custom Formulations

Architectural Renovation Paint

Overview
Provides functional paints for renovations.
Competitiveness
Product lineup highly adaptable to site conditions
Customers
  • Renovation Contractors
  • Real Estate Management Companies
Products
  • Weather-Resistant Paint
  • Anti-Stain Paint
  • Anti-Mold Paint

Competitive Advantage

Strengths

  • Top domestic share in motorcycle paints
  • Wide product deployment and diverse brands
  • Financial and sales support from Mitsui & Co.
  • Product development strength from numerous technical collaborations
  • Track record in powder coating technology licensing
  • Stable supply from three domestic production bases
  • Eco-product development compliant with environmental regulations
  • Reliability from long market experience
  • Product lineup accommodating diverse customer segments
  • Rapid technology transfer and overseas expansion track record
  • Multi-function paint technologies such as rust prevention and abrasion resistance
  • High-quality management system
  • Stable management as an established company
  • Business strategy targeting domestic and international markets
  • Utilization of diverse sales channels

Competitive Advantages

  • Overwhelming share and brand power in the motorcycle paint market
  • Introduction of advanced technologies through multinational partnerships
  • Revenue from overseas licensing of powder coating technology
  • Strength of domestic production system with Hyogo headquarters and Tokyo/Chiba factories
  • Aggressive early development and market launch of environmentally compliant products
  • Product development capabilities for diverse customer segments
  • Long-term customer relationships and stable supply capacity
  • Technology partnerships in overseas markets, especially Southeast Asia
  • Focus on R&D for sustainable paint products
  • High quality standards backing brand value
  • High customer satisfaction from advanced durability and functionality
  • Solid business foundation ensured by prudent capital policy
  • Proprietary quick-drying and heat-resistant technologies
  • Market risk diversification through diverse product lineup
  • Enhanced corporate transparency via listing on Nagoya Stock Exchange Main Market

Threats

  • Intensifying price competition in domestic and international paint markets
  • Risk of changes in local regulations at overseas manufacturing bases
  • Burden of product adaptation from further strengthening of environmental regulations
  • Cost increases from raw material price instability
  • Impact of exchange rate fluctuations on overseas expansion
  • Acceleration of technological innovation speed by competitors
  • Pressure from market share expansion by large companies
  • Intensified competition from increasing new entrants
  • Risk of lagging in competition for environmentally considerate products
  • Intensified competition for technical talent acquisition
  • Risk of damage to production bases from natural disasters
  • Growth slowdown from stagnant domestic market demand

Innovations

2024: Development of Low-VOC Motorcycle Paints

Overview
Developed low-VOC (volatile organic compound) type motorcycle paints considerate of environmental impact reduction.
Impact
Strengthened environmental regulation compliance and improved market competitiveness

2023: Enhancement of Powder Coating PCM Series

Overview
Renewal of PCM powder coating product lineup with improved corrosion resistance and work efficiency.
Impact
Contributed to increased orders from overseas customers

2022: Introduction of UV-Curable Paint Technology

Overview
Advanced commercialization of UV-curable paints through technology introduction from Ashland Chemical.
Impact
Improved production efficiency and expanded new product lineup

2021: Development of Heat-Resistant Clear Top Coat for Motorcycles

Overview
Launched heat-resistant clear top coat products with enhanced heat resistance in high-temperature environments.
Impact
Improved competitive edge in motorcycle parts market

2020: Practical Application of Environmentally Compliant Lead-Free Paints

Overview
Practicalized lead-free environmentally considerate paints compliant with domestic and international regulations.
Impact
Enhanced appeal to environmentally conscious customers

Sustainability

  • Development and promotion of low-VOC paints to reduce VOC emissions
  • Promotion of lead-free and other low environmental impact products
  • Strengthening energy-saving measures in manufacturing processes
  • Internal systems for waste reduction and recycling promotion
  • Safe product supply compliant with environmental regulations