SK Kaken

Basic Information

Stock Code
4628
Industry
Chemicals
Category Detail
Chemicals & Chemical Products
Prefecture
Osaka Prefecture
Establishment Year
April 1958
Listing Year
October 1994
Official Website
https://www.sk-kaken.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Dainichiseika Color & Chemicals, Dai Nippon Toryo, Nippon Paint Holdings, Kansai Paint, Chugoku Marine Paints, Fujikura Kasei, Natco, Daishin Chemical, DIC, Sakata INX, artience, Takigami Works, Toami

Overview

SK Kaken, founded in 1955, is Japan's leading chemical manufacturer in architectural finishing paints and a globally expanding company with strengths in fire-resistant and insulating materials.

Current Situation

SK Kaken recorded consolidated sales of approximately ¥95 billion and net profit of approximately ¥7.7 billion in fiscal 2018, maintaining steady performance. As the largest domestic player in architectural finishing paints, it boasts a high market share, with particular strength in exterior paints. It also engages in fireproof and heat-insulating business, addressing a wide range of needs in the construction sector. The company promotes product value enhancement and technological innovation, actively developing paints with improved performance and environmentally friendly products. It operates multiple factories and bases domestically and internationally, actively expanding into overseas markets. It advances sustainability-oriented management, implementing environmental load reduction and social contribution activities. As part of its 2020s growth strategy, it aims to maintain and expand competitiveness through strengthening its product lineup and developing new materials. Backed by a stable financial foundation, it invests in new initiatives and facility expansions, focusing on products offering high customer value such as durability and heat-shielding effects.

Trivia

Interesting Facts

  • Holds the largest share in Japan for architectural finishing paints.
  • Company name derives from the original name, Shikoku Chemical Research Institute.
  • Possesses advanced technology in heat-shielding paint development.
  • Offers a diverse product lineup in fire-resistant insulation materials.
  • Veteran paint manufacturer headquartered in Ibaraki City, Osaka Prefecture.
  • High evaluation in the industry for comprehensive environmentally friendly products.
  • Owns numerous subsidiaries and is active in overseas expansion.
  • Contributes to building longevity through high-durability paint technology.
  • Number of employees approx. 2,177 (consolidated as of fiscal 2018).
  • Shikoku Kogyo holds approx. 30% or more as major shareholder.

Hidden Connections

  • Maintains strong trading relationships with major architectural material suppliers.
  • Forms one of the big three in the paint industry alongside Nippon Paint and Kansai Paint.
  • Expands production and sales bases not only in Japan but also in Southeast Asia and other overseas markets.
  • President is Jitsuhiro Fujii, with strong family management by the founding family.
  • Maintains relationships with many other paint brands through OEM supply.
  • Corresponds to revisions in Building Standards Act-related technical standards through fire-resistant insulation business.
  • Acquired international certifications for environmental performance evaluation, providing numerous environmentally considerate products.
  • Many products play important roles in meeting safety standards for construction work.

Future Outlook

Growth Drivers

  • Increasing demand for environmentally friendly paints due to strengthened environmental regulations
  • Expanding demand for high-durability paints due to building longevity requirements in the construction industry
  • Growth in energy-saving and heat-shielding paint markets domestically and internationally
  • Increased building materials demand from infrastructure development in overseas emerging markets
  • Expansion in reform and maintenance sectors of the construction industry
  • Development of new materials and functional paints through technological innovation
  • Tailwinds from strengthened fire safety standards in public works
  • Improved construction efficiency through IoT and digital technologies
  • Customer base expansion through strengthened local sales system
  • Rising awareness of responses to sustainable society

Strategic Goals

  • Maintain and expand share in domestic architectural finishing paint market
  • Raise sales ratio of environmentally friendly products to over 70%
  • Double overseas market sales
  • Create new businesses through advanced fire-resistant and insulating material development
  • Promote construction and management systems using digital technology
  • Thorough CO2 emission reduction and resource saving
  • Enhance employee technical skills and human resource development
  • Promote diverse social contribution activities aligned with SDGs
  • Continuously improve customer satisfaction
  • Strengthen competitiveness through market launch of new materials and functional paints

Business Segments

Architectural Finishing Paint Sales

Overview
Provides high-function finishing paints to construction companies and contractors.
Competitiveness
Domestic largest share in paint manufacturing technology
Customers
  • Construction companies
  • Architectural contractors
  • Local builders
  • Trading companies
  • Painting contractors
  • Renovation companies
  • Public works contractors
Products
  • Exterior paints
  • Interior finishing paints
  • High-function paints
  • Heat-shielding paints
  • Anti-mold and antibacterial paints
  • Weather-resistant paints

Fire-Resistant and Insulating Materials Manufacturing and Sales

Overview
Manufactures and sells fire-resistant and insulating materials for the architectural industry.
Competitiveness
High-performance material development capabilities and diverse product lineup
Customers
  • Architectural design offices
  • Building materials trading companies
  • Construction management companies
  • Fire safety managers
  • Government agencies
Products
  • Fire-resistant coatings
  • Insulating materials
  • Fireproof panels
  • Heat-shielding materials

Paint OEM Supply

Overview
OEM manufacturing and supply of paints tailored to customer needs.
Competitiveness
Advanced formulation technology and production management
Customers
  • Paint trading companies
  • Specialty paint manufacturers
  • Overseas clients
  • Trading companies
Products
  • Custom paints
  • Special formulation paints

Construction and Maintenance Services

Overview
Painting construction services for building maintenance.
Competitiveness
Integrated provision with own brands
Customers
  • Owners' associations
  • Building management companies
  • Condominium owners' associations
  • Public facility managers
Products
  • Long-term maintenance painting
  • Repair paints
  • Sealing work

Environmentally Friendly Paint Sales

Overview
Proposes and sells paints specialized for environmental regulation compliance.
Competitiveness
Numerous products compliant with environmental standards
Customers
  • Green builders
  • Factories subject to environmental regulations
  • Energy-saving promotion companies
Products
  • Low-VOC paints
  • Water-based paints
  • Heat-shielding paints

Overseas Business Expansion

Overview
Business expansion targeting overseas markets, centered on Asia.
Competitiveness
Base network and technical support system
Customers
  • Overseas construction companies
  • Paint sales agents
  • Overseas contractors
Products
  • Exterior paints
  • Interior paints
  • Fire-resistant insulating materials

Architectural Materials Sales

Overview
Sales of architectural materials and related services.
Competitiveness
Diverse products and construction period shortening support
Customers
  • Housing manufacturers
  • Reforming companies
  • Specialty building materials stores
Products
  • Exterior building materials
  • Interior building materials
  • Waterproof sheets

Technical Support and Consulting

Overview
Support services for architectural paints using specialized technology.
Competitiveness
Years of track record and specialized knowledge
Customers
  • Contractors
  • Designers
  • Building owners
Products
  • Paint selection consulting
  • Fire resistance evaluation
  • Environmental compliance support

Special Purpose Paint Manufacturing

Overview
Manufactures and sells special function paints for industry.
Competitiveness
Diverse customization technologies
Customers
  • Factories
  • Plants
  • Transportation equipment manufacturers
Products
  • Chemical-resistant paints
  • Heat-resistant paints
  • Anti-fouling coatings

Repair Materials and Adhesives Manufacturing and Sales

Overview
Develops and sells products for building repairs.
Competitiveness
High quality and durability
Customers
  • Construction sites
  • Repair contractors
  • Local builders
Products
  • Repair paints
  • Adhesives
  • Sealing materials

Durability Testing Services

Overview
Provides performance evaluation services for paints and building materials.
Competitiveness
Strict testing standards and technical capabilities
Customers
  • Paint manufacturers
  • Architectural design offices
  • Research institutions
Products
  • Weather resistance testing
  • Fire resistance testing
  • Performance evaluation

Logistics and Warehouse Services

Overview
Efficient logistics services for paints and building materials.
Competitiveness
Wide-area bases and information management system
Customers
  • Manufacturers
  • Retailers
  • Local builders
Products
  • Paint storage
  • Delivery management
  • Order management

Competitive Advantage

Strengths

  • High market share in the domestic market
  • Development capabilities for high value-added products
  • Wide product lineup
  • Comprehensive environmentally friendly products
  • Nationwide production and sales network
  • Solid financial foundation
  • Abundant engineers and R&D system
  • Excellent customer support
  • Active expansion into overseas markets
  • Reliable brand power
  • Strengths in fire-resistant and insulation fields
  • Sustainable product development
  • Long years of industry experience and know-how
  • Technology adaptable to diverse industries
  • Comprehensive quality control system

Competitive Advantages

  • Maintains the largest market share in Japan for architectural finishing paints
  • Superior development of high-function products like high weather resistance and heat shielding
  • Advanced technology in fire-resistant insulation materials with diverse product deployment
  • Rich portfolio of environmentally regulation-compliant products
  • Rapid customer response through production bases and sales channels nationwide
  • Strong customer base with own brands and repeat orders
  • Focus on R&D to actively introduce new materials and methods
  • Global strategy with localized approach using overseas subsidiaries
  • Value chain from paint OEM supply to construction services
  • Strength in price competitiveness through high value-added products
  • Product design capabilities meeting diverse industry needs
  • Thorough standards in quality and safety
  • Active technical alliances and joint research
  • Appropriate risk management and financial stability
  • Provision of customized products reflecting customer needs

Threats

  • Declining demand due to low growth in domestic construction market
  • Risk of raw material price fluctuations
  • Intensifying price competition from competitors
  • Increased costs for product improvements due to stricter environmental regulations
  • Political and economic risks in overseas markets
  • Risk of damage to production bases from natural disasters
  • Intensified competition from technological innovations by new entrants
  • Challenges in technology succession due to labor shortages
  • Profit instability from exchange rate fluctuations
  • Brand damage from product safety or quality issues
  • Impact from customer diversification of procurement sources
  • Delays in responding to rapid technological shifts

Innovations

2024: New Development of High-Function Heat-Shielding Paint

Overview
Commercialized reflection-enhanced heat-shielding paint effective for extreme heat measures.
Impact
Significantly improves energy-saving effects and building protection performance.

2023: Expansion of Low-VOC Environmentally Friendly Paints

Overview
Introduced low volatile organic compound paints in response to strengthened environmental regulations.
Impact
Contributes to market share expansion and reduced environmental impact.

2022: High Performance Enhancement of Fire-Resistant Insulation Materials

Overview
Achieved enhanced insulation performance and improved fire safety using proprietary technology.
Impact
Improves customer satisfaction and market competitiveness.

2021: Introduction of Digital Painting Management System

Overview
Developed digital management system for painting processes at construction sites.
Impact
Realizes construction efficiency and advanced quality control.

2020: Promotion of Water-Based Paint Improvements

Overview
New series of water-based paints with reduced odor and improved durability.
Impact
Improves convenience of usage environment for customers.

2024: Research Start on Next-Generation Fire-Resistant Paints

Overview
Initiated development project for more environmentally friendly and high-performance fire-resistant paints.
Impact
Aims for creation of new markets in the future.

2023: Introduction of Paint Waste Liquid Recycling System

Overview
Introduced waste liquid recycling processing technology at factories.
Impact
Contributes to improved production efficiency and reduced environmental impact.

2022: Development of AI-Based Color Analysis System

Overview
Introduced AI to improve color tone management accuracy for products.
Impact
Stabilizes quality and improves customer satisfaction.

2021: Development of Biomass Raw Material Paints

Overview
Commercialized environmentally friendly paints using renewable resource-derived raw materials.
Impact
Contributes to sustainability improvement and market development.

2020: Completion of High-Performance Insulation Coating Material Development

Overview
Launched new fire-resistant coating material with enhanced insulation performance.
Impact
Meets energy-saving needs in architecture.

Sustainability

  • Development and promotion of low-VOC and water-based paints
  • Establishment of factory waste liquid recycling systems
  • Promotion of high energy-saving heat-shielding paints
  • Active use of biomass materials
  • Employee environmental education and local cleanup activities
  • Expansion of resource-saving packaging materials
  • CO2 emission reduction plans in manufacturing processes
  • Regular environmental impact measurements
  • Strengthening and promotion of safety and health activities
  • Publication of sustainability reports