MORESCO

Basic Information

Stock Code
5018
Industry
Petroleum and Coal Products
Category Detail
Chemicals & Chemical Products
Prefecture
Hyogo Prefecture
Establishment Year
October 1958
Listing Year
November 2003
Official Website
https://www.moresco.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
MERF, Shoei Yakuhin, Yushiro, BP Castrol, Nakamoto Pax

Overview

MORESCO is a chemical manufacturer based in Hyogo Prefecture, founded in 1958, and a major industry leader with strengths in specialty lubricants and hot-melt adhesives.

Current Situation

MORESCO recorded consolidated net sales of approximately 24.5 billion yen and operating profit of approximately 840 million yen in the fiscal year ending February 2021, maintaining stable earnings. Its flagship specialty lubricants hold a high market share in cutting-edge industries such as automobiles and HDDs. It operates five domestic bases centered in Hyogo and Chiba, plus overseas subsidiaries in Thailand, China, Indonesia, and the United States, establishing a global supply system. In technology development, it continues research on advanced functional chemicals like non-flammable hydraulic fluids and radiation-resistant lubricants. Toward 2030, it aims to expand markets and diversify products both domestically and internationally, while promoting reductions in environmental impact and strengthening quality management. In recent years, it has focused on enhancing its quality assurance system through ISO9001 certification and boosting overseas production capacity. Leveraging a robust sales network and R&D capabilities, it maintains a path of stable growth.

Trivia

Interesting Facts

  • Established in 1958 by spinning off from Matsumura Petroleum Research Institute.
  • Possesses Japan's only anhydrous sulfuric acid sulfonation plant.
  • Non-flammable hydraulic fluid is Japan's first domestically developed product.
  • Jointly developed radiation-resistant lubricants with Japan Atomic Energy Research Institute.
  • Hot melt adhesives business launched in the 1980s.
  • Overseas expansion intensified starting with Thailand entry in 1995.
  • Obtained ISO9001 certification in 2001.
  • Major shareholders include Matsumura Petroleum and Cosmo Oil.
  • Began market expansion with specialty lubricants from the 1960s.
  • Head office and research base located in Minatojima Minami-machi, Chuo-ku, Kobe City.
  • Factories located in Ako City, Hyogo Prefecture, and Ichihara City, Chiba Prefecture.
  • Products are essential in the automobile and electronics industries.
  • Group companies engage in diversified operations domestically and internationally.
  • R&D department separated and strengthened as an independent subsidiary.
  • Hot melt adhesives widely adopted in plywood and disposable diapers.

Hidden Connections

  • Historical background of separation from Matsumura Petroleum serves as a strength.
  • Demonstrated technological prowess through joint development with Japan Atomic Energy Research Institute.
  • Strong ties with petroleum-related major shareholders.
  • Japan's only sulfonate manufacturing technology provides competitive edge.
  • Overseas bases support expansion in Southeast Asian markets.
  • Moresco Honmachi Building of the Osaka branch also serves as a rental property asset.
  • Subsidiary Moresco Techno specializes in analysis and measurement technologies.
  • Specialty lubricant manufacturing technology since the 1960s forms the core.

Future Outlook

Growth Drivers

  • Growing demand for higher functionality in specialty lubricants
  • Strengthened development of eco-friendly products compliant with environmental regulations
  • Growth in overseas automobile and electronics industries
  • Advancement of R&D and digitalization
  • Acquisition of new customers through business diversification

Strategic Goals

  • Maintain top market share in specialty lubricants domestically and internationally
  • Increase ratio of low-environmental-impact products to over 50%
  • Expand overseas sales ratio from current 30% to 50%
  • Increase R&D investment to over 5% of annual sales
  • Promote business diversification leveraging group synergies

Business Segments

Special Petroleum Products Manufacturing

Overview
Manufactures and supplies high-performance lubricants for industrial machinery and automobiles.
Competitiveness
Top domestic market share in high-function specialty lubricants
Customers
  • Automobile manufacturers
  • Electronic equipment manufacturers
  • Industrial machinery manufacturers
  • Hard disk manufacturers
Products
  • High Vacuum Pump Oil
  • Non-Flammable Hydraulic Fluid
  • Specialty Lubricants
  • Brake Fluid and Antifreeze

Adhesive Manufacturing and Sales

Overview
Handles development and manufacturing of hot melt adhesives for diverse industries.
Competitiveness
Possesses Japan's only sulfonate manufacturing technology
Customers
  • Bookbinders
  • Plywood manufacturers
  • Disposable diaper manufacturers
  • Industrial adhesive users
Products
  • Various Hot Melt Adhesives

Chemical Raw Materials Supply

Overview
Manufactures and wholesales chemical products used across a wide range of industries.
Competitiveness
Stable supply system for high-purity chemicals
Customers
  • Cosmetics manufacturers
  • Plastic manufacturers
  • Agricultural and industrial chemical companies
Products
  • Liquid Paraffin
  • Sulfonates
  • Rust Preventive Raw Materials

Environment-Related Equipment Sales

Overview
Provides sales of environmental conservation products and related testing services.
Competitiveness
Proposal capabilities for environmental equipment based on technical expertise
Customers
  • Industrial wastewater treatment facilities
  • Environmental machinery manufacturers
Products
  • Wastewater Treatment Equipment
  • Analysis and Testing Services

Logistics Services

Overview
Implements efficient logistics, security, and management services within factory premises.
Competitiveness
High-quality services through group collaboration
Customers
  • Group companies
  • External customers
Products
  • Intraplant Handling
  • Manufacturing Support
  • Security and Cleaning Services

Competitive Advantage

Strengths

  • High market share in the specialty lubricants sector
  • Japan's only sulfonate manufacturing technology
  • Strong proprietary R&D capabilities in hot melt adhesives
  • Nationwide network of offices and subsidiaries
  • Extensive track record in technology development and ISO9001 certification
  • Solid financial base and stable profit levels
  • Customer-oriented direct sales system
  • Global expansion through overseas bases
  • Broad product lineup adaptable to various industries
  • Advanced production technology and quality control systems
  • Focus on developing environmentally responsive products
  • Employee contributions through stock ownership plan
  • Industry trust and brand strength
  • Long-term commitment to R&D investment
  • Provision of highly safe non-flammable lubricants

Competitive Advantages

  • Holds proprietary technology in high-function specialty lubricants for differentiation
  • Diverse product lineup including synthetic lubricants and non-flammable hydraulic fluids
  • Holds unique technology in hot melt adhesives domestically
  • Broad customer base in petroleum specialty products manufacturing
  • Expansion into overseas markets in Thailand, China, US, and Indonesia
  • High reliability and quality in products for advanced industrial fields
  • Ongoing investments in manufacturing equipment to enhance production capacity
  • History of certification as the first recipient of national new technology development financing
  • Diverse sales channels and direct sales network
  • Advanced position in environmentally responsive product development
  • High-quality assurance system through ISO9001 certification
  • Stable financial structure via prudent capital policy
  • Strong linkage of sales and production bases domestically and internationally
  • Enhanced specialization by establishing independent subsidiary for R&D department
  • Portfolio centered on high-value-added products

Threats

  • Risk of fluctuations in global crude oil prices
  • Intensifying competition from new entrants
  • Increased production costs due to stricter environmental regulations
  • Political and economic risks in overseas markets
  • Destabilization of earnings due to exchange rate fluctuations
  • Risk of lagging in technological innovation
  • Risk of customer in-house production or adoption of alternatives
  • Emergence of global competitors
  • Risk of supply chain disruptions
  • Decline in credibility due to quality management issues
  • Challenges in securing and developing talent
  • Decline in demand due to economic downturns

Innovations

2023: Improvement of Environmentally Friendly Non-Flammable Hydraulic Fluid

Overview
Developed and launched a non-flammable hydraulic fluid that maintains performance while reducing environmental impact.
Impact
Addresses strengthened environmental regulations and improves customer satisfaction

2022: Development of Enhanced High Vacuum Pump Oil Technology

Overview
Completed a new generation high vacuum pump oil with improved heat and oxidation resistance.
Impact
Contributes to improved reliability and extended lifespan of industrial machinery

2021: New Applications for Hot Melt Adhesives

Overview
Developed a new product with enhanced adhesion and quick-drying properties for disposable diaper manufacturing.
Impact
Successfully expanded market share and acquired new customers

2020: Advancement of Production Management Digitalization

Overview
Achieved efficiency and quality stabilization in manufacturing lines through IoT utilization.
Impact
Reduced production costs and shortened delivery times

Sustainability

  • Promotion of waste emission reduction programs
  • Strengthened development of low-environmental-impact products
  • Operation of ISO14001 environmental management system
  • Active participation in local environmental conservation activities
  • Investments in energy-saving equipment and efficiency improvements