Natoco

Basic Information

Stock Code
4627
Industry
Chemicals
Category Detail
Chemicals & Chemical Products
Prefecture
Aichi Prefecture
Establishment Year
November 1948
Listing Year
June 1993
Official Website
http://www.natoco.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Azeas, Dainichiseika Color & Chemicals, Dai Nippon Toryo, Nippon Paint Holdings, Kansai Paint, Chugoku Marine Paints, Fujikura Kasei, SK Kaken, DIC, Sakata INX, artience, Daisan, Kyowa Kogyo

Overview

Natoco is a paint specialist manufacturer based in Aichi Prefecture, founded in 1948, with specialty products and high-molecular materials for LCDs as its mainstays, making it a technologically advanced company in the chemical industry.

Current Situation

In fiscal 2023, Natoco boasts annual sales of approximately 15 billion yen, maintaining stable performance centered on specialty paints and polymer compounds for LCDs. Its mainstay specialty paints are used in automobiles and industrial products, offering strong market competitiveness. Polymer materials for LCDs represent a growth area, with active technological investments in the electronic materials field. The company has multiple factories and research labs domestically, focusing on quality control and R&D. It promotes sustainable management through environmentally friendly product development and ISO 14001 certification. Overseas expansion is steadily progressing, with subsidiaries established in China and Southeast Asia to develop local markets. Moving forward, R&D of high-performance paints and aggressive global expansion are strategic goals. To differentiate from industry competitors, it focuses on strengthening proprietary technologies and expanding its product lineup.

Trivia

Interesting Facts

  • Founded in 1948 as Nagoya Paint Co., Ltd., a long-established paint manufacturer.
  • Early entry into the polymer materials for LCDs field, establishing technological superiority.
  • Achieved company-wide ISO 9001 and 14001 certifications, balancing quality management and environmental response.
  • Expanding overseas bases aggressively in Southeast Asia.
  • Contributing to the industrial sector with environmentally friendly powder coating products.
  • Multiple subsidiaries in the People's Republic of China, conducting local production.
  • Chairman and President share the Kasuya surname, maintaining family-owned management tradition.
  • Headquarters in Miyoshi City (formerly Miyoshi Town), emphasizing local community ties.
  • Proprietary heat-resistant urethane paint highly evaluated for industrial machinery.
  • Diversified business including printing inks and electrical insulating materials.
  • On-site delivery center at factory for logistics efficiency.
  • New research lab established to strengthen technological development.
  • Collaboration with affiliates centered on subsidiary Tomoe Kogyo Co., Ltd.
  • Relocated headquarters factory to Miyoshi Town (now Miyoshi City) in 1966.
  • Company-wide ISO 14001 certification obtained in 2001.

Hidden Connections

  • Contributes to industrial promotion in local Miyoshi City, serving as a major pillar of the regional economy.
  • Close collaboration with affiliate Tomoe Kogyo Co., Ltd. to streamline product orders and delivery.
  • Strength in early entry into China's rapidly growing market through subsidiary in Qingdao, China.
  • Practices quality management exceeding industry standards through ISO 9001/14001 certification.
  • Deep involvement with automotive and semiconductor manufacturers by applying specialty paint technology.
  • Maintains consistency through long-term perspective management by the Kasuya family executives.
  • Recognized as an environmental leader in the industry for energy-saving technology in powder coating production.
  • Frequent attention to personnel changes in Nikkei news related to paints and chemicals.

Future Outlook

Growth Drivers

  • Expansion of demand for high-function materials in LCD and semiconductor markets
  • Increasing needs for products compliant with environmental regulations
  • Overseas market development centered on emerging Asian countries
  • Expansion of demand for high-performance paints in industrial machinery
  • Promotion of new material commercialization through R&D
  • Enhanced environmental performance and普及 of powder coatings
  • Improved production efficiency utilizing digitalization
  • Strengthened sustainable resource use and environmentally friendly products
  • Rapid customization capabilities to meet customer needs
  • Comprehensive regulatory compliance and quality assurance systems domestically and internationally
  • Cost reductions through optimization of logistics and supply chains
  • Promotion of global expansion leveraging growth of overseas subsidiaries

Strategic Goals

  • Establish domestic top share in the specialty paint market
  • Achieve 20% world market share in polymer materials for LCDs
  • Realize over 50% sales ratio from environmentally friendly products
  • Strengthen company-wide quality and environmental management through ISO certification
  • Overseas bases expansion to achieve over 30% global sales ratio
  • Over 20% sales composition from new businesses
  • 100% completion of DX for production equipment
  • 30% reduction in waste and wastewater compared to previous year
  • Continuous implementation of community-focused CSR activities
  • Maintain customer satisfaction over 90%

Business Segments

Industrial Specialty Paints

Overview
Provides specialty paints with durability and functionality specialized for industrial applications.
Competitiveness
High technological capability and versatile product adaptability
Customers
  • Automobile manufacturers
  • Heavy industry manufacturers
  • Construction companies
  • Manufacturing companies
  • Steel industry
  • Machinery manufacturers
  • Electrical equipment manufacturers
  • Shipbuilding industry
Products
  • Heat-resistant paints
  • Anti-rust paints
  • Powder coatings
  • Anti-corrosion paints
  • Metallic paints
  • Solvent-based paints

Electronic Materials

Overview
Supplies high-function materials necessary for semiconductor and LCD manufacturing.
Competitiveness
Technology-intensive approach supporting growth in polymer materials for LCDs
Customers
  • Semiconductor manufacturers
  • LCD panel manufacturers
  • Electronic component manufacturers
  • Precision equipment manufacturers
Products
  • Photoresists
  • Optical films
  • Semiconductor encapsulants
  • Electronic resins
  • Coating materials

Environmentally Friendly Paints

Overview
Provides paints aimed at reducing environmental impact.
Competitiveness
Quality management through ISO 14001 certification
Customers
  • Building materials manufacturers
  • Housing manufacturers
  • Industrial parks
  • Environmental companies
Products
  • Low-VOC paints
  • Water-based paints
  • Eco paints

Overseas Sales Business

Overview
Provides products mainly to the Asian market through overseas bases.
Competitiveness
Regionally focused sales strategy
Customers
  • Chinese market customers
  • Thai market customers
  • Philippine companies
  • Vietnamese companies
Products
  • Special industrial paints
  • Electronic materials
  • Powder coatings

Contract R&D

Overview
Provides R&D services tailored to customer needs.
Competitiveness
Abundant research facilities and technical personnel
Customers
  • Chemical companies
  • Manufacturing companies
  • Electronic component manufacturers
  • Automotive parts manufacturers
Products
  • New material development
  • High-function paint design
  • Prototype support

Paint Processing Equipment Sales

Overview
Sells paint-related processing equipment to support business efficiency.
Competitiveness
Equipment proposals considering compatibility with paints
Customers
  • Painting contractors
  • Manufacturing companies
  • Factory facilities
  • Industrial machinery manufacturers
Products
  • Paint spray guns
  • Automated painting systems
  • Paint mixers

Logistics and Delivery Services

Overview
Provides safe and prompt product delivery and logistics.
Competitiveness
Utilization of delivery center at Miyoshi factory
Customers
  • Paint distributors
  • Factories
  • Construction companies
Products
  • Warehouse storage
  • Product delivery
  • Inventory management

Competitive Advantage

Strengths

  • Specialty paint development based on high technological capabilities
  • Expertise in polymer materials for LCDs
  • Quality and environmental management systems such as ISO 14001
  • Comprehensive domestic and international production and research bases
  • Customer-oriented sales and service system
  • Long industry track record and reliability
  • Diverse product lineup
  • Development capabilities for environmentally friendly products
  • Regionally focused overseas business expansion
  • Strengthened R&D system
  • Product customization to meet industrial needs
  • Stable financial foundation

Competitive Advantages

  • Provision of high value-added product range in industrial specialty paints
  • Technological growth and market development in polymer materials for LCDs
  • Early response to environmentally friendly products and trust gained through ISO certification
  • Expansion of overseas bases and business development centered on Asia
  • Improved product development efficiency through collaboration between labs and factories
  • Broad customer base with product lineup covering multiple fields
  • Customer reassurance through high product quality control
  • Business expansion and management efficiency using subsidiaries
  • Product development with superior durability and functionality for industrial use
  • Improved operational efficiency through integrated ISO 9001/14001 certification

Threats

  • Intense market competition with major paint manufacturers
  • Risk of raw material price fluctuations
  • Burden of product specification compliance due to strengthened environmental regulations
  • Political and economic fluctuation risks in overseas markets
  • Market fragmentation due to emergence of new entrants
  • Global supply chain disruptions
  • Export/import cost fluctuations due to exchange rate changes
  • Risk of lagging behind the pace of technological innovation
  • Decline in production efficiency due to labor shortages
  • Restrictions on natural resource extraction and resource depletion
  • Intensifying competition in new environmental material development
  • Decline in competitiveness due to delays in digitalization対応

Innovations

2024: Improvement of High-Functional LCD Photoresist

Overview
Developed photoresist materials aimed at higher resolution and improved durability.
Impact
Contributes to expanding market share in the electronic materials field

2023: Launch of Environmentally Friendly Low-VOC Powder Coating

Overview
Introduced environmentally friendly powder coating with significantly reduced VOC compared to conventional products.
Impact
Strengthened compliance with environmental regulations and acquired new customers

2022: Expansion of Manufacturing Equipment for Chinese Market

Overview
Enhanced production capacity and quality control systems at the Chinese factory.
Impact
Strengthened local sales and improved cost competitiveness

2021: Development of New Metallic Paint

Overview
Developed new metallic paint that balances weather resistance and aesthetics.
Impact
Leads to expanded adoption in the automotive field

2020: Efficiency Improvement in Powder Coating Production Process

Overview
Promoted automation of production lines to improve factory utilization rates.
Impact
Reduced production costs and shortened delivery times

Sustainability

  • Strengthened environmental management through ISO 14001 certification
  • Active promotion of low-VOC paints and reduction of environmental impact
  • Reduction of wastewater and promotion of recycling
  • Introduction of energy-saving production equipment
  • Employee training to raise environmental awareness
  • Participation in local environmental protection activities
  • Promotion of sustainable resource procurement
  • Programs to reduce waste and promote reuse
  • Design and development of environmentally friendly products
  • Establishment and compliance with green procurement standards
  • Reduction of environmental impact across product life cycles
  • Strengthened environmental considerations throughout the supply chain