Nichias

Basic Information

Stock Code
5393
Industry
Glass and Mineral Products
Category Detail
Construction Materials & Equipment
Prefecture
Tokyo
Establishment Year
April 1896
Listing Year
October 1961
Official Website
https://www.nichias.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Kamishima Chemical Industries, JCU, Danto Holdings, Nippon Insulation, Shinto, Tsuruya, Kunimine Industries, A&A Material, Kondo, Nichiha, BARKER

Overview

Nichias is a long-established company in the glass and mineral products industry, founded in 1896, with insulation materials and sealing materials as its mainstays. It is a highly technical enterprise providing high-performance materials and construction services to a wide range of industries.

Current Situation

Nichias recorded consolidated sales of approximately 256.5 billion yen and operating profit of approximately 39.7 billion yen for the fiscal year ending March 2025, establishing a stable financial base. Its core businesses are diversified, including insulation materials, sealing materials, and soundproofing materials, supplied to plants and automakers both domestically and internationally. In particular, the automotive parts business is advancing overseas expansion and building a global production system. In technological innovation, it is focusing on the development of fluoropolymer products and high-performance sealing materials, while also promoting energy-saving and environmentally friendly products. To recover trust following past fireproof performance falsification issues, it has strengthened its quality assurance system. In the medium to long term, it aims to increase the overseas sales ratio and expand high value-added products, focusing on sustainable business growth. Recently, it has invested in advanced methods such as aerogel insulation construction, exploring new areas.

Trivia

Interesting Facts

  • The TOMBO trademark derives from Japan's nickname 'Dragonfly Island'.
  • Formerly known as Japan Asbestos Co., Ltd.
  • Has a history of manufacturing and selling products containing crocidolite until the 1970s.
  • Attracted social attention in 2007 due to fireproof performance falsification issue.
  • Products have track record in heat insulation construction for LNG carriers domestically and internationally.
  • Operates 5 factories and 2 research institutes in Japan.
  • Bases deployed globally in China, Europe, and Southeast Asia.
  • Wrap-around fireproof covering material 'Makibee' for housing is a representative product.
  • Number of employees as of 2021 is 6,337, mid-sized company.
  • Conducted stock consolidation in 2018 to adjust number of shares.
  • End of asbestos-containing product sales: domestic 2006, overseas 2007.
  • Providing products to diverse industries and actively developing new businesses.
  • Renewed internal systems through strengthened quality assurance.
  • Automotive parts business expanding through reinforced overseas production bases.
  • Aerogel insulation material positioned as key for new market development.

Hidden Connections

  • Dragonfly design symbolizes connection between Japanese culture and company history.
  • Asbestos issue had significant impact on peer companies as well.
  • Materials for semiconductor manufacturing equipment deeply linked to latest technologies.
  • Built long-term transaction relationships with major plant companies domestically and internationally.
  • Central company in technological innovation watched by many building materials-related firms.
  • Industry-leading presence in environmental response for global supply chain.
  • Market coverage through multiple subsidiaries like Metacoat Kogyo.
  • Shifted to sustainable growth path through management reform after quality falsification issue.

Future Outlook

Growth Drivers

  • Market expansion of high-function insulation materials
  • Increased demand for eco-products due to strengthened environmental regulations
  • New parts demand accompanying automotive electrification
  • Growth of semiconductor and electronics industries
  • Increasing overseas plant construction demand
  • Promotion of energy-saving building materials
  • Strengthening of cutting-edge material development technology
  • Expansion of IoT and smart construction technology adoption
  • Optimization of global production system

Strategic Goals

  • Achieve overseas sales ratio of 30% or more
  • Realize reduced environmental impact across all product lines
  • Expand aerogel insulation material market share
  • Double sales in semiconductor business
  • Complete digitalization of construction business
  • Further strengthen quality and safety management
  • Foster corporate culture of diversity and work-life balance
  • Build sustainable supply chain
  • Diversify revenue through new business creation
  • Continuously secure customer satisfaction of 90% or higher

Business Segments

Plant Construction and Sales Business

Overview
Providing cold/heat insulation construction and various sealing materials for the plant sector, with a long-term maintenance system established.
Competitiveness
Comprehensive heat/cold insulation technology capabilities for high and low temperatures
Customers
  • Oil Refinery Plants
  • Petrochemical Plants
  • Electric Power Companies
  • LNG Facilities
  • Steel Mills
  • Chemical Plants
  • Refrigeration and Cold Storage Facilities
  • Food Processing Plants
  • LPG Carriers
  • LNG Carriers
Products
  • Heat-Resistant Sealing Materials
  • Heat Insulation Materials & Cold Insulation Materials
  • Refractory Materials
  • Special Sealing Materials
  • Plant Heat Insulation Construction
  • Cold Insulation Construction
  • Fireproof Construction
  • Maintenance Services
  • Joining Materials
  • Fluoropolymer Products

Industrial Products Business

Overview
Supplying high-performance materials and parts to diverse industrial fields, actively entering cutting-edge sectors.
Competitiveness
Technical responsiveness across diverse industries and product diversity
Customers
  • Environmental Equipment Manufacturers
  • Food Machinery Manufacturers
  • Medical Equipment Manufacturers
  • Steel Manufacturers
  • Petrochemical Manufacturers
  • General Industrial Parts Manufacturers
  • Aerospace Industry
  • Semiconductor-Related Companies
Products
  • Gaskets
  • Packings
  • Fluoropolymer Products
  • Insulation Materials
  • Filters
  • High-Function Sealing Materials
  • Chemical-Resistant Materials
  • Industrial Parts

High-Function Products Business

Overview
Providing high-function products specialized for semiconductor and FPD manufacturing equipment.
Competitiveness
Advanced material technology and process compatibility
Customers
  • Semiconductor Manufacturing Equipment Manufacturers
  • FPD Equipment Manufacturers
  • Electronics Companies
Products
  • Fluoropolymer Tubes
  • High-Function Sealing Materials
  • Resin Processed Products
  • Precision Parts

Automotive Parts Business

Overview
Supplying heat protection, soundproofing, and vibration damping parts to automotive-related companies worldwide, strengthening global expansion.
Competitiveness
Global production system and technological adaptability
Customers
  • Domestic Automakers
  • Overseas Automakers
  • Automotive Parts Manufacturers
Products
  • Engine Sealing Materials
  • Heat Shields
  • Anti-Vibration & Soundproofing Materials
  • Brake Shims
  • Coolant Control Parts

Building Materials Business

Overview
Providing incombustible and highly insulated building materials and construction in a one-stop manner for the architectural field.
Competitiveness
Integration of diverse insulation/fireproof building materials and construction technology
Customers
  • Housing Manufacturers
  • Office Building Constructors
  • Factory Constructors
  • Research Facility Operators
Products
  • Fireproof Insulation Covering Materials
  • Rock Wool Products
  • Free Access Floor
  • Calcium Silicate Boards
  • Insulated Decorative Boards

Competitive Advantage

Strengths

  • Technological capabilities backed by long history
  • Diverse product lineup
  • High-quality management and construction services
  • Global production system
  • Rich customer base in various industries
  • Environmentally friendly product development capabilities
  • Strong R&D system
  • Expertise in fireproof and insulation fields
  • Multi-location network domestically and internationally
  • Thorough compliance with safety standards
  • High expertise of engineers
  • Collaboration with wide range of industries
  • Possession of innovative insulation methods
  • Custom response to customer needs
  • Stable financial base

Competitive Advantages

  • Competitive edge through comprehensive provision of insulation and sealing materials
  • High technological accumulation and quality reliability
  • Broad business deployment from plants to automotive
  • Strengths in overseas expansion and global procurement
  • Proprietary aerogel insulation method
  • Technological superiority in high-function fluoropolymers
  • Efforts to recover trust after fireproof performance falsification issue
  • One-stop provision integrating construction and manufacturing
  • Prompt response to environmental regulations and product renewal
  • Product lineup adaptable to diverse industry needs
  • Specialized maintenance service system
  • Close collaboration between R&D and field technology
  • Stable revenue sources from long-term customer contracts
  • Reduced accidents through high quality management capabilities
  • High transparency corporate governance

Threats

  • Increased burden from strengthened regulations in building materials industry
  • Intense price competition with domestic and international rivals
  • Displacement risk from emerging new material technologies
  • Product risks related to environmental issues
  • Exchange rate fluctuation risks accompanying overseas expansion
  • Concerns over productivity decline due to labor shortages
  • Impact from economic fluctuations in construction investment
  • Market pressure from new entrants
  • Brand damage risk from product defects
  • Cost increases from rising resource prices
  • Competitive decline from delayed technological innovation
  • Escalation of social responsibility issues

Innovations

2024: Commercial Expansion of Aerogel Insulation Construction

Overview
Began deploying construction services using super-insulating aerogel material to large-scale buildings.
Impact
Contributes to improved energy-saving performance and market share expansion

2023: Development of New Fluoropolymer Material

Overview
Developed new fluoropolymer material with excellent chemical and heat resistance, deploying to semiconductor industry.
Impact
Increased sales and customer expansion in high-function products business.

2022: Expansion of Environmentally Friendly Insulation Material Lineup

Overview
Improved production equipment for non-freon rigid foam insulation materials to enhance environmental performance.
Impact
Compliance with environmental regulations and improved customer satisfaction.

2021: Introduction of New Manufacturing Method for High Heat-Resistant Metal Gaskets

Overview
Adopted new forming technology combining corrosion and heat resistance to improve production efficiency.
Impact
Achieved improved product quality and cost reduction.

2020: Start of Smart Heat Insulation Construction Technology Development

Overview
Developed quality management technology for heat insulation construction using sensors and IoT.
Impact
Standardization of construction quality and improved efficiency.

Sustainability

  • Complete transition to asbestos-free products
  • Promotion of non-freon insulation materials
  • Reduction of CO2 emissions in manufacturing processes
  • Efforts to improve waste recycling rate
  • Cooperation in local environmental conservation activities
  • Strengthening of safety and health management system
  • Improvement of working environment and promotion of diversity
  • Expansion of green procurement
  • Reduction of environmental impact in plant construction
  • Promotion of eco-product certifications
  • Investment in energy efficiency equipment
  • Strengthening environmental responsibility in supply chain