Bando Chemical Industries

Basic Information

Stock Code
5195
Industry
Rubber Products
Category Detail
Rubber & Rubber Products
Prefecture
Hyogo Prefecture
Establishment Year
April 1906
Listing Year
January 1962
Official Website
https://www.bandogrp.com/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Kuriyama Holdings, Sakai Chemical, Seiritsu Electric Machine, Showa Holdings, Fujikura Composites, Asahi Rubber, Fukoku, Nitta, Sakura Rubber, Sumitomo Riko, Mitsuboshi Belting, NOK

Overview

Bando Chemical Industries was founded in 1906 and is a comprehensive chemical manufacturer based in Hyogo Prefecture that holds over 90% of the global market share centered on industrial belts.

Current Situation

Bando Chemical Industries achieved sales of approximately 108.2 billion yen and operating profit of approximately 7.7 billion yen in fiscal 2023, maintaining solid performance. Its mainstay transmission belts have a strong customer base domestically and internationally in the industrial rubber products sector, boasting over 90% global market share. The company pursues stable growth through diversified product offerings in automotive parts, industrial materials, and high-performance elastomer products. In research and development, it focuses on technological innovations in precision belts and polyurethane functional parts while actively developing new markets. It operates multiple bases overseas, primarily in the United States, Asia, and Europe, establishing a global sales network. In sustainability initiatives, it emphasizes reducing environmental impact through resource-efficient high-performance materials. Moving forward, it aims to strengthen its technology and products to secure competitive advantages in the global market, with challenges in new fields as a key strategic pillar.

Trivia

Interesting Facts

  • One of Japan's first V-belt manufacturers.
  • Boasts over 90% global market share in transmission belts.
  • Holds numerous international patents for transmission belts.
  • Long-established company with multiple locally rooted factories.
  • Pioneer in high-function abrasive manufacturing.
  • Developed the world's first belt for dry continuously variable transmissions.
  • Local subsidiaries in Thailand, the US, and Europe.
  • High recognition in the environmentally friendly resin film industry.
  • Industrial manufacturer that newly entered the artificial bone medical field.
  • Recipient of multiple awards in transmission technology.

Hidden Connections

  • Transmission belt technology contributes to improved motion accuracy in industrial robots.
  • Known in the industry as a major supplier to multiple automakers.
  • Strengthened joint research with universities through medical artificial bone material technology.
  • Partnered with new materials ventures for environmentally regulatory compliant products.
  • Historically maintains close networks with manufacturing industry in Hyogo Prefecture.
  • Own-brand motorcycle transmission belts highly rated in Asian markets.
  • Supplies key parts for industrial materials to numerous domestic factories.
  • Stably participates in the market as a Tokyo Stock Exchange Prime listed company.

Future Outlook

Growth Drivers

  • Global expansion of demand for industrial drive belts.
  • Increased demand accompanying spread of high-efficiency technologies in autos and motorcycles.
  • Promotion of new product development in medical and electronics fields.
  • Surge in demand for environmentally friendly materials and stricter regulations.
  • Demand for rebuilding global supply chains.
  • Growth in special parts market for advanced robots.
  • Expanding expectations for high-function elastomer products.
  • Creation of new applications through materials technology innovation.
  • Demand for industrial materials from recovery in domestic and international manufacturing.
  • Product multifunctionality from spread of IoT and smart factories.

Strategic Goals

  • Maintain over 90% global share in transmission belts.
  • Double current sales in medical materials business.
  • Increase ratio of environmentally friendly products to over 50% of sales.
  • Expand overseas bases and aggressively invest in emerging markets.
  • Establish new product lineup through next-generation materials development.
  • Promote digitalization and efficiency of supply chains.
  • Improve business efficiency and quality through internal DX.
  • Achieve ESG metrics for sustainable management.
  • Expand into new business areas and strengthen collaborations.
  • Promote diversity among employees and strengthen talent development.

Business Segments

Automotive Parts Business

Overview
Provides multifunctional transmission belts and related products for automotive applications.
Competitiveness
Over 90% global market share and high-function product lineup
Customers
  • Domestic and international automakers
  • Automotive parts suppliers
  • Motorcycle manufacturers
  • Construction machinery manufacturers
  • Agricultural machinery manufacturers
  • Transportation equipment manufacturers
Products
  • Accessory drive transmission belts
  • Transmission system products
  • Motorcycle drive belts
  • Pulley products
  • Accessory drive multi-groove belts

Industrial Materials Business

Overview
Leading supplier of drive and transport belts for industrial machinery.
Competitiveness
Product lineup that quickly responds to diverse customer needs
Customers
  • Industrial machinery manufacturers
  • Logistics conveyor operators
  • Packaging machinery manufacturers
  • Food manufacturers
  • Paper manufacturers
  • Mining operators
  • Port and harbor transport operators
Products
  • Industrial drive belts
  • Conveyor belts
  • Pulleys
  • Crusher rolls
  • Transport system products

High-Function Elastomer Products Business

Overview
Business supplying high-function materials and parts for precision equipment.
Competitiveness
High-precision technology and proprietary materials for high-quality products
Customers
  • Semiconductor manufacturing equipment makers
  • Precision equipment makers
  • Printing machine makers
  • Medical device makers
  • Industrial equipment makers
Products
  • Cleaning blades
  • Precision belts
  • Polyurethane functional parts
  • Precision abrasives
  • Resin films

Electronic Materials and Medical Devices Business

Overview
Manufactures and sells advanced materials and parts for electronic and medical devices.
Competitiveness
Aggressive expansion into medical fields
Customers
  • Electronics manufacturers
  • Medical device makers
  • Medical research institutions
  • Environmental equipment makers
Products
  • Insulating materials
  • Flexible substrates
  • Artificial bones
  • Medical precision belts

Robot and New Technology Related

Overview
Development and supply of high-performance parts for next-generation robots.
Competitiveness
Product lineup leveraging advanced control technology
Customers
  • Industrial robot manufacturers
  • Automation system makers
  • New materials development companies
Products
  • Motion control drive belts
  • High-sensitivity sensors
  • Special elastomer parts

Manufacturing and Sales for Overseas Markets

Overview
Promotes sales with product lines tailored to global markets.
Competitiveness
Stable supply system through multinational expansion
Customers
  • North American automotive industry
  • Asian industrial materials market
  • European electronic parts market
Products
  • Automotive drive belts
  • Industrial conveyor belts
  • High-function elastomer products

Environmental and Energy-Related Materials

Overview
Provides high-performance materials aimed at reducing environmental impact.
Competitiveness
Market development through eco-material innovation
Customers
  • Renewable energy companies
  • Environmental technology research institutions
Products
  • Heat- and chemical-resistant conveyor belts
  • Environmentally friendly resin films

Packaging and Logistics-Related Products

Overview
Supplies high-durability materials for packaging and logistics sectors.
Competitiveness
Product development combining strength and flexibility
Customers
  • Logistics companies
  • Packaging materials manufacturers
  • Food processing companies
Products
  • Resin films
  • Heavy-duty packaging belts

Industrial Machinery Maintenance Supplies

Overview
Provides reliable replacement parts for machinery maintenance.
Competitiveness
High-quality assurance based on durability testing
Customers
  • Manufacturing companies
  • Plant operators
Products
  • Cleaning blades
  • Replacement drive belts

Medical Materials R&D

Overview
Supports R&D in medical fields and provides materials.
Competitiveness
Advanced materials technology and collaborative research framework
Customers
  • Universities and research institutions
  • Medical device development companies
Products
  • Artificial bone materials
  • Medical resin films

Special-Purpose Rubber Products

Overview
Manufactures rubber products requiring special performance.
Competitiveness
High-performance products based on proprietary technology
Customers
  • Anti-vibration device makers
  • Special machinery makers
Products
  • Anti-vibration rubber products
  • Special drive belts

Education and Training Services

Overview
Provides training to enhance technical capabilities and product understanding.
Competitiveness
High-quality education based on long years of industry experience
Customers
  • Related companies
  • Industry associations
Products
  • Technical training programs
  • Product handling education

Competitive Advantage

Strengths

  • Transmission belt technology with over 90% global market share
  • Extensive lineup of high-function elastomer products
  • Robust domestic and international sales network
  • Accumulated manufacturing expertise and patented technologies
  • Proven track record across diverse industries
  • Stable financial foundation
  • Continuous investment in R&D
  • Successful entry into medical device field
  • Differentiation through precision belt technology
  • Development capabilities for environmentally friendly materials
  • Global local subsidiary network
  • Extensive customer base
  • Advanced quality control system
  • Engineer expertise
  • Capability for multi-variety small-lot production

Competitive Advantages

  • Maintaining competitiveness based on world-class transmission belt market share
  • Risk diversification through products for diverse industries
  • Differentiation via proprietary development of high-function materials
  • Market-proximate sales through overseas bases
  • Customer trust gained from high quality standards
  • Meeting customer needs with broad product portfolio
  • New market creation through materials technology in medical field
  • Product design balancing durability and performance
  • Strong relationships with long-term customers
  • Growth secured through diverse applications in industrial materials and medical devices
  • Improved production efficiency via proprietary processes and equipment investment
  • Flexible response and customization to customer requests
  • Preemptive development of products compliant with environmental regulations
  • Advanced engineer training and R&D system
  • Enhanced information sharing and global collaboration

Threats

  • Intensified competition from major customers' in-house procurement
  • Price competition pressure from new entrants
  • Risk of raw material price fluctuations
  • International trade friction and tariff risks
  • Increased compliance costs from stricter environmental regulations
  • Decline in competitiveness from stagnant technological innovation
  • Risk of new materials and substitute products emerging
  • Political and economic instability in overseas markets
  • Profit impact from exchange rate fluctuations
  • Rising logistics costs
  • Supply chain disruption risks
  • Challenges in talent acquisition

Innovations

2024: New Development of Highly Durable Polyurethane Belts

Overview
Commercialized polyurethane belts with 20% longer lifespan compared to conventional products.
Impact
Contributes to market share expansion in industrial machinery sector

2023: Expansion of Medical Artificial Bone Material Sales

Overview
Successfully developed new applications for high-function biocompatible artificial bones.
Impact
Contributes to new revenue generation in medical device sector

2022: Commercialization of Environmentally Friendly Resin Films

Overview
Developed environmentally low-impact films using biodegradable resins.
Impact
Strengthens response to demand for sustainable materials

2021: Development of High-Flow Chemical Product Manufacturing Technology

Overview
New chemical product technology with improved fluidity over conventional.
Impact
Reduces manufacturing costs and improves product performance

2020: Prototype of IoT-Enabled Conveyor Belt System

Overview
Implemented smart belts that monitor operational status.
Impact
Achieves maintenance efficiency improvements

Sustainability

  • Promotion of resource-saving high-function elastomer products
  • Development and expansion of low-environmental-impact products
  • Factory energy efficiency improvement activities
  • Production process improvements aiming for zero industrial waste
  • Environmental protection activities in collaboration with local communities
  • Introduction of green procurement standards
  • Enhanced use of recycled materials
  • Setting and promotion of CO2 emission reduction targets
  • Implementation of product lifecycle assessments
  • Employee environmental awareness education
  • Building sustainable supply chains