Yushiro

Basic Information

Stock Code
5013
Industry
Petroleum and Coal Products
Category Detail
Chemicals & Chemical Products
Prefecture
Tokyo
Establishment Year
July 1944
Listing Year
December 1985
Official Website
https://www.yushiro.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Clip, Soken Chemical, BP Castrol, MORESCO, San-Kyo Chemical

Overview

Yushiro is a leading company in the manufacture of metalworking fluids and building maintenance products, founded in 1944. It has established a strong position in the petroleum and coal products industry through advanced technological capabilities and a diverse product lineup.

Current Situation

Yushiro recorded consolidated sales of approximately 37.3 billion yen and operating profit of approximately 2.2 billion yen for the fiscal year ended March 2022, maintaining a stable financial base. In its core metalworking fluids business, it holds a high market share for automobiles, steel, and machinery industries, while actively expanding overseas. In building maintenance products, it offers a wide range of products for diverse applications to meet market needs. In R&D, it continues to develop high-performance cutting oils, lubricants, and rust preventives to improve quality. It focuses on developing and manufacturing environmentally friendly products, aiming for sustainable production from a sustainability perspective. Its mid- to long-term strategy emphasizes business expansion in overseas markets, growth through new product development, and brand strengthening in line with the planned company name change in 2025. Recently, it has also begun initiatives to improve production efficiency through digital technology.

Trivia

Interesting Facts

  • Founded by the founder for the purpose of refining oils and waxes
  • Experienced a major explosion accident at Hirakata Factory in 1978
  • Stock price rose after resisting Steel Partners' TOB
  • Market leader in high-performance cutting fluids for manufacturing sites
  • OEM products supplied to major home appliance makers like Panasonic
  • Approximately 1,000 employees with a high ratio of engineers
  • Built trusted long-term relationships with customers
  • Long-established company headquartered in Ota-ku, Tokyo
  • Planned company name change to Yushiro in 2025
  • Actively focusing on developing low-environmental-impact products

Hidden Connections

  • OEM washing machine cleaners have close ties with multiple major home appliance manufacturers
  • Important presence as lubricant supplier to major automobile manufacturers
  • Long-term trading partners' stockholding association forms a key shareholder base
  • Has a system to quickly capitalize on trends in stricter environmental regulations for product development
  • Achieved advanced safety management awareness through rebuilding after factory explosion accident
  • In-house transportation division contributes to rapid logistics and quality maintenance
  • Successive presidents from technical backgrounds maintain technology-oriented management
  • Actively contributes to industrial development in local Ota-ku, Tokyo

Future Outlook

Growth Drivers

  • Increasing demand for specialized fluids due to advanced domestic manufacturing
  • Growth in automobile and machinery industries in overseas markets
  • Expansion of environmentally friendly products due to regulations
  • Production efficiency improvements through digital technology utilization
  • Strengthened differentiation strategy via multi-functional product development
  • Stable revenue base reinforcement through robust OEM transaction expansion
  • Promotion of entry into new environmentally focused markets
  • Promotion of automation and labor-saving technological innovations to address labor shortages
  • Brand value enhancement aligned with sustainability
  • Improved social credibility through strengthened regional collaboration
  • Continuous reinforcement of R&D capabilities
  • Cost control capabilities to cope with energy price fluctuations

Strategic Goals

  • Expand overseas sales ratio to over 30%
  • Make environmentally friendly products 70% or more of all products
  • Complete digital transformation of manufacturing processes
  • Establish sustainable procurement and production systems
  • Maintain 5% annual sales growth through new product development
  • Strengthen strategic partnerships with OEM clients
  • Advance CSR activities for deeper coexistence with local communities
  • Achieve employee skill enhancement and work-style reforms
  • Build and optimize global production systems
  • Advance safety management and quality assurance systems

Business Segments

Metalworking Fluid Manufacturing

Overview
Manufacturing and supply of high-quality metalworking fluids for the automobile and steel industries.
Competitiveness
Industry-leading technological capabilities and product quality
Customers
  • Automobile manufacturers
  • Steel manufacturers
  • Machining factories
  • Aerospace industry
  • Shipbuilding industry
Products
  • Cutting oils
  • Lubricants
  • Rust preventives
  • Release agents
  • Grinding oils

Building Maintenance Product Supply

Overview
Provision of chemical products for cleaning and protection in various facilities.
Competitiveness
Comprehensive product lineup for a wide range of applications
Customers
  • Cleaning companies
  • Building management companies
  • Factory managers
  • Commercial facility operators
Products
  • Floor waxes
  • Cleaners
  • Gum removers
  • Carpet cleaners

OEM Product Manufacturing and Sales

Overview
OEM manufacturing for major manufacturers to supply high-quality products.
Competitiveness
Flexible customization capabilities
Customers
  • Home appliance manufacturers
  • Daily goods manufacturers
  • Cosmetics manufacturers
Products
  • Washing machine cleaners
  • Special waxes
  • Industrial detergents

Industrial Lubricant Sales

Overview
Sales and support of lubricants and oils for various industries.
Competitiveness
Advanced technical support system
Customers
  • Industrial machinery manufacturers
  • Energy companies
  • Transportation-related companies
Products
  • Industrial lubricating oils
  • Special lubricants
  • Maintenance oils

R&D Services

Overview
Research support services for new material development and product improvement.
Competitiveness
Accumulated technology over many years and extensive track record
Customers
  • Corporate research labs
  • Universities and public research institutions
Products
  • Technical consulting
  • Joint R&D
  • Product prototyping

Logistics and Delivery Services

Overview
Product delivery to group and external companies, along with logistics efficiency support.
Competitiveness
Rapid response through in-house transportation division
Customers
  • Group companies
  • Product retailers
Products
  • Transportation services
  • Inventory management
  • Delivery optimization

Competitive Advantage

Strengths

  • Advanced metalworking fluid technology
  • Wide product lineup
  • Active overseas expansion
  • Stable financial base
  • Diverse customer base
  • Robust OEM supply system
  • Environmentally friendly product offerings
  • Rapid response through in-house transportation
  • Long-term business continuity and trust
  • Continuous investment in R&D
  • Comprehensive maintenance product manufacturing
  • Presence of skilled employees
  • Cost competitiveness through economies of scale
  • Stable shareholder composition
  • High brand recognition in the industry

Competitive Advantages

  • Leading market share in metalworking fluids
  • Strong sales network and support for automobile and steel industries
  • Customer convenience through one-stop supply of various lubricants, rust preventives, etc.
  • Long-term transaction relationships with major manufacturers via OEM
  • Leadership in developing products compliant with environmental regulations
  • Logistics quality and cost control through in-house transportation
  • New customer acquisition through overseas base expansion
  • Flexibility in technical problem-solving and customization
  • Sustainable management through stable sales and profits
  • Diversification strategy across product categories
  • Customer trust built on historical brand strength
  • Enhanced in-house R&D and engineer training
  • Capability to serve a wide range of industries
  • Organizational agility to respond to rapid market changes
  • Acquisition of international standards for high-quality products

Threats

  • Risk of significant fluctuations in international raw material prices
  • Intensified competition from new entrants
  • Burden of product specification changes due to stricter environmental regulations
  • Impact of exchange rate fluctuations on export profitability
  • Decline in sales due to customer in-house production or alternative product development
  • Potential demand contraction from economic downturn
  • Political risks and regulatory changes in overseas markets
  • Constraints on production and logistics due to labor shortages
  • Lagging in digital technology adoption competition
  • Risk of profit margin decline from intensified price competition
  • Increasing compliance costs
  • Cost increases from soaring crude oil prices

Innovations

2023: Development of Environmentally Friendly Cutting Fluids

Overview
Commercialized next-generation cutting fluids aimed at reducing VOCs and improving biodegradability.
Impact
Contributes to reduced environmental impact and improved customer satisfaction

2024: Advancement of Digitalization in Manufacturing Processes

Overview
Promoted smart manufacturing lines using IoT and AI to achieve production efficiency improvements.
Impact
Achieved 10% reduction in production costs and stabilized quality

2022: Expansion of New Lubricant Lineup

Overview
Launched new products with excellent high-temperature and wear resistance.
Impact
Successfully expanded adoption in new markets

2021: High-Functionality Upgrade for Building Maintenance Products

Overview
Successfully developed and launched antibacterial floor waxes and cleaners.
Impact
Gained customer acclaim as hygiene-enhanced products

2025: Plan to Strengthen and Expand Overseas Manufacturing Bases

Overview
Strengthening response to overseas demand through new production base construction.
Impact
Expected 20% increase in overseas sales ratio

Sustainability

  • Promotion of product improvements to reduce environmental impact
  • Enhanced energy-saving and wastewater measures at factories
  • Ongoing efforts to improve waste recycling rates
  • Employee environmental awareness programs
  • Environmental conservation projects in cooperation with local communities
  • Strengthened product safety and chemical management
  • Active promotion of green procurement
  • Compliance with environmental standards in the supply chain
  • Maintenance of ISO 14001 certification at manufacturing sites
  • Brand value enhancement through eco-label acquisition
  • Efforts toward sustainable raw material procurement
  • Setting mid- to long-term goals for greenhouse gas emission reductions