Toho Zinc

Basic Information

Stock Code
5707
Industry
Non-Ferrous Metals
Category Detail
Iron, Steel & Metal Products
Prefecture
Tokyo
Establishment Year
March 1937
Listing Year
May 1949
Official Website
http://www.toho-zinc.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Market Enterprise, Taiheiyo Kogyo, Mitsubishi Materials, Sumitomo Metal Mining, DOWA Holdings, Furukawa Co., Ltd., Osaka Titanium Technologies, Toho Titanium, Nippon Seiko, W-SCOPE, Net Protections

Overview

Toho Zinc is a non-ferrous metals manufacturer founded in 1937, boasting the No. 1 domestic share in lead smelting. It is a leading company engaged in zinc and silver smelting, resource development, electronic components, and recycling businesses.

Current Situation

Toho Zinc recorded consolidated sales of approximately ¥126.3 billion and operating profit of approximately ¥5.6 billion for the fiscal year ending March 2025, maintaining its top share in the domestic lead smelting market. The zinc smelting business is undergoing structural reforms with the planned shutdown of the Annaka Smelter, while focusing on resource business development at Australian mines. The electronic components and materials business and recycling business are emphasizing the expansion of environmentally friendly products and promoting sustainable operations. On the sustainability front, it is working on recovering environmental pollution while advancing recycling technologies. Amid intensifying competition with peers, it aims to strengthen competitiveness through equipment efficiency improvements and business diversification. In recent years, it has particularly focused on responding to stricter environmental regulations and stabilizing resource procurement, planning sustainable growth by 2030 through the utilization of renewable resources and expansion of overseas resource development.

Trivia

Interesting Facts

  • Founded in 1937 as Japan Zinc Smelting
  • Holds the highest domestic level of lead smelting share
  • Implemented ¥7 billion recovery in 2019 for hazardous slag issue
  • Annaka Smelter was prosecuted in 1969 for violation of Mining Safety Law
  • Engages in integrated business of lead, zinc, and silver smelting
  • Chishima Smelter was spun off to subsidiary in the 2010s
  • Electronic components business focuses on high-tech fields
  • Sintered alloy parts famous as tire balance weights
  • Head office location in Minato-ku, Tokyo since founding
  • Listed on Tokyo Stock Exchange Prime since 1949
  • Advanced recycling technology development in the industry
  • Corporate number 9010001034863
  • Actively tackling environmental issues
  • One of the big eight non-ferrous metal companies
  • Historically has many subsidiaries

Hidden Connections

  • Mitsubishi Corporation RtM Japan involved as major shareholder
  • Impacts local community through subsidiary Toho Chishima Smelting
  • Japan Master Trust Custody Bank as major shareholder with deep financial ties
  • Strong ties with domestic and overseas mines for lead and zinc ore supply
  • Smelter equipment shutdown as strategic response to industry structural changes
  • Participating in industry-academia-government collaboration projects for environmental recycling technology development
  • Holds patents and proprietary know-how from long years of smelting technology
  • Transformed into an environmental conservation company after local pollution lawsuits

Future Outlook

Growth Drivers

  • Business quality improvement through withdrawal from zinc smelting
  • Expansion of overseas resource development business
  • Growth in recycling business responding to stricter environmental regulations
  • Development of high value-added products in electronic components field
  • Profit improvement through equipment renewal and efficiency gains
  • Increasing demand for sustainable products
  • Market development through new material development
  • Brand strengthening through coordination with local communities
  • Promotion of long-term financial stabilization strategy
  • Stable operation of domestic and overseas mines and resource securing

Strategic Goals

  • Complete phased closure of Annaka Smelter and establish regeneration business
  • Expand overseas resource development and achieve stable profitability
  • Increase recycling rate to over 50%
  • Double sales in electronic components business
  • Build production system aiming for zero environmental impact
  • Enhance corporate value and transparency through ESG management
  • Diversify product portfolio in new markets
  • Introduce digital transformation
  • Improve work environment through thorough safety and health management
  • Systematic promotion of community contribution activities

Business Segments

Non-Ferrous Metal Smelting & Refining Division

Overview
Performs smelting and refining of zinc, lead, silver, etc., supplying high-quality metal materials to various industries.
Competitiveness
Domestic top-class smelting technology and stable supply capability
Customers
  • Automotive Manufacturers
  • Battery Manufacturers
  • Construction Companies
  • Electronics Manufacturers
  • Industrial Machinery Manufacturers
Products
  • Zinc Ingot
  • Lead Ingot
  • Silver Refined Products
  • Bismuth
  • Sulfuric Acid

Electronic Materials & Functional Materials Division

Overview
Develops and manufactures high-function electronic materials and materials for electronic devices, contributing to product performance improvements.
Competitiveness
Fine processing technology and diverse plating technologies
Customers
  • Electronic Component Manufacturers
  • Semiconductor Manufacturers
  • Telecommunications Equipment Manufacturers
  • Automotive Electrical Manufacturers
  • Precision Machinery Manufacturers
Products
  • Electronic Coils
  • Conductive Paste
  • Functional Materials
  • Metal Plating Products
  • Precision Parts

Environmental Recycling Division

Overview
Recovers metal resources from electric furnace dust and used batteries, promoting reduction of environmental impact.
Competitiveness
Advanced metal recovery technology and regulatory compliance capabilities
Customers
  • Electric Furnace Manufacturers
  • Waste Management Companies
  • Recycling Companies
  • Battery Recycling Companies
  • Municipalities
Products
  • Metal Recovery Products
  • Recycled Zinc
  • Waste Treatment Technology
  • Eco-Friendly Products

Mining Resource Development Division

Overview
Promotes domestic and overseas mine development, contributing to stabilization of raw material supply.
Competitiveness
Track record in Australian mine development
Customers
  • Resource Development Companies
  • Mining Operation Companies
  • Investment Companies
  • Energy Companies
Products
  • Zinc Ore
  • Lead Ore
  • Mining Development Technology
  • Resource Procurement Services

Equipment Parts Manufacturing Division

Overview
Provides parts to the machinery industry, centered on metal sintered alloys and balance weights.
Competitiveness
Special metal processing technology and high-quality control
Customers
  • Automotive Manufacturers
  • Tire Manufacturers
  • Industrial Machinery Manufacturers
  • Construction Machinery Manufacturers
Products
  • Sintered Alloy Parts
  • Tire Balance Weights
  • Machinery Parts
  • Precision Metal Processed Products

Chemical Products Division

Overview
Manufactures and supplies chemical products based on smelting by-products sulfuric acid and gypsum.
Competitiveness
Mass production system linked with smelting
Customers
  • Chemical Manufacturers
  • Construction Material Manufacturers
  • Industrial Raw Material Users
Products
  • Sulfuric Acid
  • Gypsum
  • Related Chemicals

Electrolytic Iron Manufacturing Division

Overview
Manufactures high-purity electrolytic iron and provides raw materials to various industries.
Competitiveness
High-quality iron powder manufacturing technology
Customers
  • Magnetic Material Manufacturers
  • Chemical Industry
  • Iron Powder Users
Products
  • Electrolytic Iron
  • Iron Powder

Plating Processing Division

Overview
Improves product durability and functionality through diverse plating processing services.
Competitiveness
Extensive plating technologies and mass production capabilities
Customers
  • Electronic Component Manufacturers
  • Automotive Parts Manufacturers
  • Precision Machinery Manufacturers
Products
  • Gold Plating
  • Silver Plating
  • Nickel Plating

Logistics & Material Procurement Division

Overview
Handles logistics management for the entire group and efficient material procurement.
Competitiveness
Internal logistics network
Customers
  • Subsidiaries
  • External Warehouse Operators
  • Related Companies
Products
  • Material Transportation
  • Product Warehouse Storage

Competitive Advantage

Strengths

  • Domestic top-class lead smelting share
  • High industry technology in zinc and silver smelting
  • Stable resource procurement and mine development track record
  • Diversified business portfolio
  • Advanced recycling technology
  • Strong customer base and long-term relationships
  • Corporate stance emphasizing environmental response
  • Development capabilities in precision electronic components
  • Stable logistics via group subsidiaries
  • Effective utilization of smelting by-products
  • Extensive product lineup
  • Advanced quality control system
  • Good relations with local communities
  • Implementation of long-term business regeneration plans
  • Solid financial foundation

Competitive Advantages

  • Domestic largest-scale lead smelting capacity
  • Stably leading the market in zinc and silver sectors
  • Integrated operations from resources to products
  • Superior response to environmental regulations
  • Provision of high value-added products through technological innovation
  • Risk diversification through diverse metal products
  • Recycling business as differentiating factor for environmental consideration
  • Stable raw material securing via overseas mine development
  • Differentiation through high-precision electronic components
  • Strong customer network
  • Long operating history and trust in smelters
  • Maintenance of strict safety management system
  • Brand trust through community-based management
  • Thorough compliance with laws and social responsibility
  • Market responsiveness through diverse product range

Threats

  • Stricter environmental regulations and increased compliance costs
  • Raw material price fluctuation risks
  • Management uncertainties in overseas mine development
  • Equipment investment burden due to aging smelters
  • Competitors' technological innovations
  • Uncertain market fluctuations in product demand
  • Procurement difficulties due to resource depletion risks
  • Changes in recycling regulations
  • Global economic instability
  • Impact of exchange rate fluctuations
  • Emergence of new entrants
  • Operational halts due to natural disaster risks

Innovations

2024: Shutdown of Main Equipment at Annaka Smelter

Overview
Shutting down main equipment at Annaka Smelter as part of withdrawal from zinc smelting business for business restructuring.
Impact
Contributes to streamlining business structure and financial improvement

2022: Transfer of Chishima Smelter to Subsidiary

Overview
Transferring Chishima Smelter to subsidiary Toho Chishima Smelting to improve management efficiency.
Impact
Improved operational efficiency through spin-off of smelting business

2021: Advancement of Recycling Technology

Overview
Improved metal recovery technology from electric furnace dust and used batteries, promoting reduction of environmental impact.
Impact
Successfully improved recovery rates and strengthened environmental regulation compliance

2020: Renewal of Electronic Component Manufacturing Technology

Overview
Updated manufacturing technology for high-performance electronic coils and conductive materials to state-of-the-art.
Impact
Improved product reliability and customer satisfaction

Sustainability

  • Voluntary recovery and removal of hazardous metal slag products
  • Promotion of metal resource recycling from waste
  • Equipment updates aimed at reducing environmental impact
  • Ensuring environmental safety through legal compliance
  • Expansion and efficiency improvement of recycled resource utilization
  • Participation in local environmental conservation activities
  • Reduction and strengthened management of hazardous substance emissions
  • Improved transparency through CSR reports
  • Improvement of fuel and energy use efficiency
  • Strengthened employee environmental education
  • Acquisition of ISO14001 environmental management certification
  • Active introduction of energy-saving technologies