Nihon Kogyo

Basic Information

Stock Code
5279
Industry
Glass and Stone Products
Category Detail
Construction Materials & Equipment
Prefecture
Kagawa Prefecture
Establishment Year
August 1956
Listing Year
February 1993
Official Website
http://www.nihon-kogyo.co.jp/
TSE Information
TSE Information
Yahoo! Finance
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Other Companies
Miki Kogyo, Soneck, Hip, Hotman, ZOA, Atom Ribintec, Benefit Japan, Nozawa, Nihon Hume, Asahi Concrete Kogyo, Nihon Concrete Kogyo, Toyo Asano, Mitani Sekisan, Yamau Holdings, Yamax, Asia Pile Holdings, Berutex Corporation, Nikkato, Kenso

Overview

Nihon Kogyo is a major domestic manufacturer of concrete secondary products established in 1956, providing products with strengths in landscape and civil engineering fields along with related construction services.

Current Situation

Nihon Kogyo recorded consolidated net sales of approximately 13.7 billion yen and operating profit of approximately 400 million yen in the fiscal year ending March 2024, maintaining a stable revenue base. Its main business is the manufacturing and sales of concrete secondary products, boasting a diverse product lineup including paving materials, civil engineering materials, and exterior products. Through its partnership with the Sekisui Chemical group, it has strengthened its technological capabilities and distribution channels, with developing private sector demand as a key challenge. It achieves regionally focused service provision through multiple production bases and a nationwide sales network. The company is focusing on reducing environmental impact, developing barrier-free compatible products, and cutting CO2 emissions. Following the Tokyo Stock Exchange market category change in 2022, it transitioned to the Standard market and is working to enhance corporate value. Moving forward, it aims to strengthen competitiveness and achieve growth expansion through the introduction of new technologies, production efficiency improvements, and sustainable product development.

Trivia

Interesting Facts

  • Long-term partnership with Sekisui Chemical since 1969
  • One of Japan's first manufacturers of environmentally considerate paving materials
  • Regionally focused company with diverse domestic production bases
  • Unique presence in the industry as a concrete secondary products specialist headquartered in Kagawa Prefecture
  • Key supplier of concrete products for public facilities and urban development
  • Originally started as Kagawa Block Industry
  • Company history closely tied to local community development
  • Known in the industry for pioneering environmentally responsive products
  • Provides integrated services from manufacturing to construction
  • Includes many local financial institutions among long-term shareholders

Hidden Connections

  • Business partnership as a major shareholder of Sekisui Chemical significantly influences corporate strategy
  • Maintains stable financial network with major banks in local Kagawa Prefecture
  • Transitioned from JASDAQ to Tokyo Stock Exchange, flexibly responding to market environment changes
  • Has experience participating in artificial reef-related environmental protection projects
  • Unique service contributing to customer construction period shortening through construction site ancillary works
  • Contributes to regional housing development and urban planning through combined civil engineering and landscape businesses
  • Deploys regionally limited eco-paving material brands, strengthening ties with local governments
  • Numerous joint research projects with industry associations promoting environmentally harmonious products

Future Outlook

Growth Drivers

  • Expansion of demand for infrastructure aging countermeasures in public works
  • Increased demand for low-carbon products due to strengthened environmental regulations
  • Expansion of landscape material demand accompanying urban and redevelopment
  • Product innovation through collaboration with Sekisui Chemical group
  • Production efficiency improvements accompanying DX in construction sites
  • Increased demand for related products due to barrier-free promotion
  • Strengthened response to local revitalization initiatives by local governments
  • Market expansion of recycled material utilization products
  • Stable orders from aging infrastructure renewal demand
  • Market growth for seismic and disaster prevention products

Strategic Goals

  • Reduce CO2 emissions by 50% compared to 2020
  • Achieve over 70% sales ratio of environmentally considerate products
  • Complete full automation of production processes for efficiency
  • Aim to expand market share in major domestic markets
  • Create new businesses through strengthened collaboration with Sekisui Chemical group
  • Increase investment in R&D for barrier-free and environmental products
  • Strengthen sales bases and services in major cities nationwide
  • Deploy CSR activities aiming for coexistence with local communities
  • Introduce technologies corresponding to digitalization of construction materials market
  • Organizational strengthening through diverse talent acquisition and development

Business Segments

Public Civil Engineering Materials Supply

Overview
Provides high-quality concrete materials for public works, emphasizing durability and environmental considerations.
Competitiveness
Strength in nationwide production and supply network
Customers
  • Local Governments
  • Public Works Contractors
  • Water and Sewerage Operators
  • Road Construction Companies
  • Civil Engineering Contractors
  • Urban Development Companies
  • Port and River Administrators
  • Environmental Conservation Groups
  • Electric Power Companies
  • Railway Operators
Products
  • Paving Materials
  • Box Culverts
  • Drainage Pipes
  • Revêtement Concrete Blocks
  • Retaining Wall Materials
  • Blind Ditch Products
  • Seismic Reinforcement Materials
  • Rainwater Storage Tanks
  • Soundproofing & Vibration Isolation Materials
  • Road Concrete Products

Private Construction & Civil Engineering Materials

Overview
Provides concrete secondary products combining landscape and functionality for private sector needs.
Competitiveness
Product development capabilities through technical partnership with Sekisui Chemical
Customers
  • Construction Companies
  • Real Estate Developers
  • General Contractors
  • Housing Manufacturers
  • Landscaping Contractors
  • Local Builders
  • Exterior Design Offices
  • Commercial Facility Developers
  • Public Facility Managers
  • Infrastructure Maintenance Companies
Products
  • Exterior Products
  • Garden Concrete Products
  • Paving Tiles
  • Foundation Products
  • Soundproof Walls
  • Lightweight Panels
  • Recycled Materials
  • Seismic Reinforcement Members
  • Weed Barrier Sheet Foundation Materials
  • Landscape-Related Materials

Construction-Related Services

Overview
In addition to product sales, provides construction-related services to offer total solutions.
Competitiveness
On-site construction-focused services contributing to shorter construction periods and stable quality
Customers
  • Construction Management Companies
  • Civil Works Contractors
  • Local Government Contracts
  • Private Construction Sites
  • Design Offices
  • Public Facility Management Companies
Products
  • Ancillary Construction Works
  • Construction Material Procurement
  • On-Site Support
  • Maintenance Services
  • Recycling Support
  • Construction Period Management Support
  • Quality Control
  • Environmental Safety Measures

Research & Development Collaboration

Overview
Contributes to innovation in concrete product technologies through industry-academia-government collaboration.
Competitiveness
Collaboration network with diverse research institutions
Customers
  • Construction Materials Research Institutions
  • Universities & Research Institutes
  • Manufacturing Equipment Manufacturers
  • Environmental Technology Developers
  • National Institute of Advanced Industrial Science and Technology
  • Public Interest Groups
Products
  • New Material Development
  • Environmentally Considerate Products
  • Durability Evaluation
  • Energy-Saving Technologies
  • Recycling Technologies
  • Construction Technology Improvements
  • Product Performance Testing

Environmentally Focused Product Supply

Overview
Provides various products considerate of environmental impact reduction and promotes social contributions.
Competitiveness
Early focus on environmentally considerate product development
Customers
  • Environmental Consultants
  • Urban Planning Offices
  • Municipal Environmental Departments
  • Eco-Building Stakeholders
  • Renewable Energy Companies
  • Urban Greening Promotion Groups
Products
  • Permeable Paving Materials
  • Water-Retaining Paving Materials
  • Recycled Material Products
  • Low-Carbon Concrete
  • Eco Landscape Materials
  • Barrier-Free Compatible Products

Competitive Advantage

Strengths

  • Strong corporate partnership with Sekisui Chemical
  • Domestic network with diverse production bases
  • High-quality concrete product lineup
  • Early development and commercialization of environmentally considerate products
  • Regionally focused sales organization
  • Strengths in civil engineering and landscape fields
  • Stable financial base
  • Long-term customer relationship building
  • Provision of construction-related services
  • Active investment in technology development

Competitive Advantages

  • Ability to leverage Sekisui Chemical group's technology and distribution channels
  • Product development capabilities corresponding to energy-saving and environmental regulations
  • Rapid supply system through diverse production bases
  • Customer support strength via regionally focused sales functions
  • Comprehensive product deployment in civil engineering and landscape meeting customer needs
  • Ability to propose services bundled with construction-related services
  • Improved reliability through high-quality management systems
  • Superiority during environmental regulation strengthening
  • Coverage of wide product categories
  • Brand trust from long years of industry experience

Threats

  • Impact on sales from fluctuations in private construction demand
  • Intensifying price competition in construction materials
  • Rising material prices such as steel and resins
  • Increased burden of complying with strict environmental regulations
  • Production and supply risks from natural disasters
  • Difficulty in securing talent due to successor shortages
  • Potential market shrinkage from emerging alternative materials
  • Labor shortages and rising labor costs in domestic construction industry
  • Competition with global manufacturers
  • Investment restraint due to uncertain economic conditions

Innovations

2024: Development of Low-Carbon Concrete Products

Overview
Commercialized concrete using a new manufacturing process that reduces CO2 emissions by 50%.
Impact
Reduced environmental impact and improved customer evaluation

2023: Enhancement of Barrier-Free Paving Materials

Overview
Renewed barrier-free paving materials including braille tiles for the visually impaired, improving safety.
Impact
Increased adoption in public and commercial facilities

2022: Expansion of Recycled Material Product Line

Overview
Launched environmentally considerate concrete products utilizing construction waste materials.
Impact
Sales expansion and improved corporate evaluation under strengthened environmental regulations

2021: Introduction of Automated Production Lines

Overview
Introduced robots at some factories to improve production efficiency and commenced operations.
Impact
20% productivity improvement and quality enhancement

2020: Certification for Environmentally Considerate Paving Materials

Overview
Successfully developed water-retaining and permeable paving materials certified under JIS standards.
Impact
Increased adoption in public works and enhanced environmental brand value

Sustainability

  • Set target to reduce CO2 emissions in manufacturing by 50%
  • Continuous improvement of waste recycling rate
  • Active development of low-environmental-impact products
  • Strengthened response to barrier-free society
  • Active participation in local environmental conservation activities
  • Expansion of energy-saving production equipment introduction
  • Strict compliance with labor safety and health standards
  • Promotion of employee environmental education and awareness
  • Promotion of sustainable material procurement
  • Strengthened collaboration with local communities