SEC Carbon

Basic Information

Stock Code
5304
Industry
Glass and Stone Products
Category Detail
Ceramics, Clay & Stone Products
Prefecture
Hyogo Prefecture
Establishment Year
October 1934
Listing Year
July 1963
Official Website
https://sec-carbon.com/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Yushiro, Tokai Carbon, Nippon Carbon, Toyo Tanso, Tohoku Special Steel, Nasu Denki Tekko, Okamoto Koki, Yokota Seisakusho, Kikukawa Enterprise, Daido Signal, Hoshikawa Denki, OBARA GROUP, EDP

Overview

SEC Carbon is a leading carbon products manufacturer established in 1934, an independent company holding about 50% of the global market share centered on artificial graphite electrodes.

Current Situation

SEC Carbon recorded standalone sales of approximately ¥15.8 billion and net profit of approximately ¥2 billion for the fiscal year ended March 2023, maintaining a stable business foundation. Its mainstay artificial graphite electrodes, used for melting iron scrap and aluminum smelting, boast about 50% global market share, establishing a near-monopoly position. Production is centered at the Kyoto Plant in Hyogo Prefecture with two domestic factories, and overseas sales account for about 50%, making it sensitive to yen exchange rate fluctuations. It also develops special carbon products such as high-purity graphite powder and strives to diversify its products. It maintains strong transaction relationships with major shareholders including Otani Iron Works, Mitsubishi Corporation, and Sumitomo Corporation, ensuring a stable funding environment. The company focuses on sustainable production technologies and energy-saving initiatives to actively reduce environmental impact. Challenges include intensifying international competition and raw material price fluctuations, but it is advancing high-performance material development and overseas expansion for medium- to long-term growth. Moving forward, it aims to pursue innovation in carbon materials and stable supply, solidifying its position as a partner in the steel and aluminum industries.

Trivia

Interesting Facts

  • Domestic largest with approx. 50% global share in artificial graphite electrodes.
  • Kyoto Plant site area rivals Tokyo Disneyland in size.
  • Founder Takenojirō Otani is also a renowned art collector.
  • Rapidly rebuilt factory after wartime destruction and continued operations.
  • Strength in manufacturing technology for high-purity graphite powder used as raw material.
  • Stable management backed by major trading companies as principal shareholders.
  • Influenced by policies related to anti-dumping investigations on Chinese graphite electrodes.
  • Plays an important role in Japan's carbon industry for many years.
  • Factory electricity usage is among the largest in Kyoto Prefecture.
  • Advanced technology enabling multi-variety small-lot production.
  • Overwhelming technological superiority in competition with peers.
  • Handles diverse graphite products excluding carbon fiber.
  • Supplies high-quality products to customers domestically and internationally.
  • Provides indispensable materials for smelting processes in various industries.
  • Introduces manufacturing processes considerate of the environment.

Hidden Connections

  • The founder's Otani family holds significant influence in ironmaking and the art world.
  • Achieved distribution expansion through capital and business alliances with major trading companies.
  • Notable as a constituent of the JPX-Nikkei Mid and Small Cap Index.
  • Key company contributing to industrial promotion in local Hyogo Prefecture and supporting regional employment.
  • The expansive Kyoto Plant site is one of the company's strengths.
  • Actively involved in industry group Carbon Association.
  • Special carbon products born from close collaboration with electronic parts manufacturers.
  • Environmental regulation-compliant product development strongly linked to policy trends.

Future Outlook

Growth Drivers

  • Increasing global adoption of electric furnaces in steel industry
  • Expanding demand for carbon products in aluminum smelting industry
  • Growth in high-function carbon materials market
  • Increasing demand for energy-saving products due to stricter environmental regulations
  • Rising graphite powder demand from battery and electronic materials market growth
  • Installation of steel and smelting equipment in overseas emerging markets
  • Product diversification and strengthened customization capabilities
  • Enhanced development of sustainability-compliant products
  • Advancement of advanced automation and efficiency in manufacturing equipment
  • Stable revenue base through long-term contracts with key customers
  • Cost reduction through logistics optimization
  • Innovation in carbon product recycling technology

Strategic Goals

  • Achieve expansion to over 55% global share
  • 20% CO2 emission reduction through cumulative energy-saving equipment introduction
  • Achieve 30% sales ratio for special carbon products in new markets
  • Raise overseas sales ratio to over 55%
  • Enrich lineup of low-environmental-impact products
  • Improve quality through DX in manufacturing and production bases
  • Build sustainable growth model in collaboration with local communities
  • Global talent development and organizational revitalization
  • Achieve 40% recycled resource utilization rate
  • 15% production efficiency improvement through AI and IoT utilization

Business Segments

Products for Steel Electric Furnaces

Overview
Supplies electrodes for steel electric furnaces, achieving high quality and stable supply.
Competitiveness
Overwhelming manufacturing capacity with approx. 50% global share and stable supply
Customers
  • Domestic and overseas steel manufacturers
  • Scrap dealers
  • Electric furnace operators
  • Recycling companies
Products
  • Large Graphite Electrodes
  • Medium Graphite Electrodes
  • Small Graphite Electrodes

Carbon Products for Aluminum Smelting

Overview
Provides high-durability carbon parts essential for aluminum smelting to support improved smelting efficiency.
Competitiveness
High-purity materials and diverse product lineup
Customers
  • Aluminum smelting companies
  • Secondary battery manufacturers
  • Electronic component manufacturers
Products
  • Cathode Blocks
  • Anode Blocks
  • Special Carbon Products

Electronic Materials and Carbon Powder

Overview
Provides high-quality carbon materials for electronics to contribute to product performance improvement.
Competitiveness
Graphite powder manufacturing technology with purity over 99.9%
Customers
  • Electronic device manufacturers
  • Battery material manufacturers
  • High-performance material developers
Products
  • High-Purity Graphite Powder
  • Fine Carbon Parts

Machine Parts and Special Application Materials

Overview
Provides improved machine performance and durability through special carbon products.
Competitiveness
Customization capabilities for high-function materials
Customers
  • Machine manufacturers
  • Automotive parts manufacturers
  • Lubricant manufacturers
Products
  • Carbon Fiber Products
  • Carbon Powder

Recycling and Environment-Related Products

Overview
Provides carbon materials that contribute to reducing environmental impact.
Competitiveness
Pioneering environmental response technologies
Customers
  • Environmental plant operators
  • Recycling companies
Products
  • Recycled Carbon Materials
  • Environmentally Friendly Carbon Products

R&D Support Services

Overview
Provides support for cutting-edge technology research and development.
Competitiveness
High technical expertise and diverse analysis methods
Customers
  • Universities and research institutions
  • Material development companies
Products
  • Material Analysis Services
  • Custom Carbon Product Development

Secondary Battery Material Supply

Overview
Provides high-quality carbon raw materials to improve battery performance.
Competitiveness
Flexible response to rapidly growing markets
Customers
  • Battery manufacturers
  • Automotive manufacturers
Products
  • Battery Carbon Materials
  • High-Performance Graphite Powder

Industrial Machinery Parts Market

Overview
Supplies materials contributing to longer life of industrial machinery.
Competitiveness
Long-life, high-performance carbon materials
Customers
  • Machine tool manufacturers
  • Manufacturing equipment manufacturers
Products
  • Special Carbon Parts
  • High-Durability Materials

Construction and Civil Engineering Products

Overview
Provides carbon products that enhance durability of construction materials.
Competitiveness
Product lineup with high corrosion resistance and strength
Customers
  • Construction companies
  • Civil engineering material suppliers
Products
  • Durable Carbon Materials
  • Reinforcing Materials

Chemical Industry Materials

Overview
Provides high-function carbon materials for promoting chemical reactions.
Competitiveness
High purity and heat resistance
Customers
  • Chemical manufacturers
  • Material processors
Products
  • High-Purity Graphite Powder
  • Special Carbon Materials

Materials for Automotive Industry

Overview
Contributes to durability and performance improvement in automobiles.
Competitiveness
Multi-variety, small-lot production capabilities
Customers
  • Automotive manufacturers
  • Parts suppliers
Products
  • High-Durability Carbon Parts
  • Carbon Powder for Lubricants

Aerospace Carbon Materials

Overview
Develops and provides high-quality carbon materials for aerospace applications.
Competitiveness
Strict quality control and high heat resistance
Customers
  • Aircraft manufacturers
  • Defense industry
Products
  • High-Performance Carbon Fiber Products
  • Heat-Resistant Special Carbon Materials

Competitive Advantage

Strengths

  • Approx. 50% global share in graphite electrode manufacturing capacity
  • Diverse carbon product lineup including high-purity graphite powder
  • Large-scale production base in one of Japan's largest industrial parks
  • Strong capital and operational support from major shareholders
  • Long-term stable performance and accumulated technology
  • Established sales network in overseas markets
  • High-quality control system and R&D capabilities
  • Development of environmentally friendly products and energy-saving initiatives
  • Abundant customer base and stable trading partners
  • Strong manufacturing and supply chain management
  • Market risk diversification through diverse carbon products
  • Training of specialized technical staff
  • Supply of robust, high-durability products
  • Customization capabilities for products
  • Strong influence in the electric furnace industry

Competitive Advantages

  • Maintains pricing power through overwhelming global share
  • Flexible response to market needs with diverse carbon product lines
  • Achieves stable high-quality production with large-scale factories
  • Secures funding and distribution channels through collaboration with major trading company shareholders
  • Differentiation through technological development of special carbon products
  • Covers global markets with approx. 50% overseas sales ratio
  • Market superiority through early development of products compliant with environmental regulations
  • Broad applications for high-purity powder
  • Improved production efficiency through investment in advanced manufacturing equipment
  • Cost reduction through promotion of material recycling technology
  • Strong brand recognition in steel and aluminum industries
  • Business risk diversification through expansion into multiple fields
  • Established long-term trading foundation through deep customer relationships
  • Improved customer satisfaction through advanced quality control
  • Enhanced ESG evaluation through sustainable production systems

Threats

  • Revenue instability risk from exchange rate fluctuations
  • Intensifying price competition led by China
  • Upward pressure on raw material prices
  • Decline in market competitiveness due to delayed technological innovation
  • Increased production costs from stricter environmental regulations
  • Intensified competition from new entrants
  • Demand decline risk from global economic slowdown
  • Market share contraction from spread of substitute materials
  • Export restriction risks from international trade friction
  • Production site damage risk from natural disasters
  • Supply chain vulnerabilities
  • Decline in productivity from labor shortages

Innovations

2023: New Manufacturing Method for High-Purity Graphite Powder

Overview
Developed new technology to manufacture 99.999% purity graphite powder cost-effectively.
Impact
Contributes to market expansion in electronic component applications

2022: Introduction of Energy-Saving Graphite Electrode Manufacturing Equipment

Overview
Introduced new equipment at Kyoto Plant that reduces power consumption by 20%.
Impact
Achieves reduction in environmental impact and costs

2021: Recycled Carbon Materials Development Project

Overview
Established technology for recycling used carbon materials.
Impact
Contributes to raw material cost control and environmental impact reduction

2020: Expansion of Special Carbon Fiber Products

Overview
Developed high-performance carbon materials for the aerospace industry.
Impact
Leads to new customer acquisition and business expansion

Sustainability

  • Promotion of energy-saving manufacturing technology adoption
  • Improvement of used material recycling rate
  • Advancement of low-environmental-impact product development
  • Strengthening of workplace safety and health management
  • Support for environmental education in local communities