Toyo Kanetsu

Basic Information

Stock Code
6369
Industry
Machinery
Category Detail
Iron, Steel & Metal Products
Prefecture
Tokyo
Establishment Year
May 1941
Listing Year
October 1961
Official Website
https://www.toyokanetsu.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Falco HD, Shinagawa Refra, Chugoku Kogyo, Eagle Industry

Overview

Toyo Kanetsu is a comprehensive engineering company founded in 1941 in the machinery industry, boasting a top global share in the manufacture of extremely low-temperature tanks for LNG, LPG, and others.

Current Situation

Toyo Kanetsu recorded consolidated net sales of 46.5 billion yen and operating profit of approximately 2.6 billion yen for the fiscal year ending March 2020, maintaining a solid financial foundation. Its core cryogenic storage tank business holds the world's second-largest market share, offering a diverse range of products including high-pressure spherical tanks. The company has a track record of constructing over 5,700 storage tanks domestically and internationally, earning high praise from numerous oil and natural gas-related companies. It undertakes integrated construction including civil engineering and piping work, while striving to strengthen its technological capabilities. Through its subsidiaries, it also focuses on environmental research and logistics system businesses, pursuing diversified operations across the group. Since 2018, it has emphasized strengthening environmental-related fields to contribute to building a sustainable society. In recent years, it has invested in digital transformation and enhanced safety and quality management to address next-generation demand. Looking ahead to 2025 and beyond, it aims for further growth amid increasing energy infrastructure demand domestically and internationally.

Trivia

Interesting Facts

  • Boasts the world's No. 2 share in LNG cryogenic storage tank manufacturing
  • Nearly 7,000 various tanks constructed since founding in 1941
  • Proprietary welding technology highly evaluated domestically and internationally
  • Supports key parts of Japan's energy infrastructure
  • Unique comprehensive engineering company also engaged in logistics handling
  • Strengthened environmental field through subsidiary acquisition of environmental research business
  • Holds long-term quality assurance system, corresponding to large-scale projects domestically and internationally
  • Head office building in Koto-ku, Tokyo, designed with environmental considerations
  • Company name changed to current in 1970 from Toyo Fire Heat Industry
  • Major production bases in Chiba and Wakayama

Hidden Connections

  • Contributes to improving safety standards in construction industry through strengthened asbestos survey business
  • Provides one-stop logistics systems through collaboration with Toyo Koken subsidiary
  • Provides composite plant construction know-how to oil and natural gas producing countries
  • High reliability with numerous track records in public infrastructure projects
  • Combination of environmental analysis and construction services is rare in the industry
  • Overseas operations conducted through subsidiaries in Malaysia and Indonesia
  • Domestic top-class market share in high-pressure spherical tank field
  • Built long-term transaction relationships with major energy companies

Future Outlook

Growth Drivers

  • Expansion of global energy infrastructure demand
  • Stable growth and advancement needs in LNG and LPG markets
  • Expansion of environmental business due to strengthened environmental regulations
  • Increased demand for handling equipment due to progress in logistics automation
  • Improved production efficiency through digital technology utilization
  • Response to strengthened domestic and international safety and quality standards
  • Emerging market development through global expansion
  • Technological innovation in environmentally friendly technologies for housing construction business
  • Expectations for contribution to energy-saving and low-carbon society
  • Risk diversification effect through diversified businesses
  • Synergy creation with related subsidiaries
  • Maintenance and improvement of technological capabilities through technical personnel development

Strategic Goals

  • Maintain and expand as world top-class LNG tank manufacturer
  • Full rollout of low environmental impact products and processes
  • Completion of digital transformation
  • Expand environmental and safety business sales to over 20% of total
  • Promote sustainable management in collaboration with local communities
  • Increase contribution ratio of emerging markets to sales to 30%
  • Establish technological leadership in logistics handling field
  • Acquire international standard certification for safety and quality management system
  • Lead in environmentally friendly technologies for housing construction business
  • Realize improvement in employee diversity and work-life balance

Business Segments

Liquefied Gas Storage Plant Business

Overview
Business providing integrated plant equipment for storage and transportation of liquefied natural gas and liquefied petroleum gas.
Competitiveness
Strength in advanced welding technology and global-scale construction track record
Customers
  • Oil refining companies
  • Gas supply companies
  • LNG importers
  • Chemical plant operators
  • Energy companies
Products
  • LNG Cryogenic Storage Tanks
  • LPG Storage Tanks
  • High-Pressure Spherical Tanks
  • Related Piping Equipment
  • Safety Instrumentation Systems

Logistics Handling System Business

Overview
Designs and manufactures conveying equipment for automation and efficiency of logistics and production lines.
Competitiveness
High customizability in design and maintenance capabilities
Customers
  • Logistics center operators
  • Airport operators
  • Food processing factories
  • Apparel manufacturers
  • Postal services
Products
  • Belt Conveyor Systems
  • Automatic Sorters
  • Baggage Handling Systems
  • Food Distribution Handling Systems
  • Truck Terminal Systems

Environmental Survey and Measurement Business

Overview
Provides integrated environmental survey, analysis, and measurement services.
Competitiveness
High reliability and abundant track record
Customers
  • Construction companies
  • Local governments
  • Factory operators
  • Environmental consultants
  • Real estate management companies
Products
  • Asbestos Content Surveys
  • Environmental Analysis Services
  • Measurement Equipment Rental
  • Safety Environment Consulting
  • Environmental Monitoring

Construction and Plant Construction Business

Overview
Business handling construction to maintenance of diverse plants such as oil refining and steelmaking.
Competitiveness
Long years of construction know-how and safety management system
Customers
  • Energy plant operators
  • Chemical plant companies
  • Steel mills
  • Industrial infrastructure companies
  • Public entities
Products
  • Plant Design and Construction Services
  • Civil Engineering Construction
  • Piping Work
  • Operation Maintenance Services
  • Maintenance

Housing Construction Business

Overview
Conducts housing construction and material supply applying tank manufacturing technology.
Competitiveness
High-durability design and environmentally friendly construction methods
Customers
  • Individual customers
  • Housing sales agents
  • Housing contractors
Products
  • Energy-Saving Earthquake-Resistant Housing
  • Prefab Housing
  • Renovation Methods
  • Housing Building Materials

Competitive Advantage

Strengths

  • World's No. 2 share in LNG cryogenic tank manufacturing
  • Advanced welding and total engineering capabilities
  • Integrated response capability for diverse related works
  • Comprehensive safety and quality management system
  • High customer trust and track record
  • Global design and construction capabilities
  • Expertise in environmental survey business
  • Long-term technological accumulation
  • Diversified business portfolio
  • Strong ties with local communities
  • Stable financial foundation
  • Business support from abundant related subsidiaries
  • High production scale and delivery management capabilities
  • Strategic domestic and international networks
  • Specialized technology in logistics handling field

Competitive Advantages

  • World top-class technology and track record in LNG storage tanks
  • Ensured safety backed by advanced welding technology
  • High trust due to numerous domestic and international track records
  • One-stop provision of diverse related services
  • Early entry into environmental field and specialized service development
  • Differentiation through proprietary quality assurance and inspection systems
  • Rapid response to regional infrastructure demand
  • High technological strength in logistics system design and manufacturing
  • Revenue stability through diversified businesses
  • Comprehensive maintenance system
  • Strong partnerships with domestic and international customers
  • High product durability and environmental adaptability
  • Possession of proprietary developed materials and methods
  • Reliability and accuracy of environmental survey services
  • Thorough labor safety and health measures

Threats

  • Risk of market slowdown due to energy demand fluctuations
  • Intensifying technological innovation and price competition from rivals
  • Cost increases due to strengthened environmental regulations
  • Political and economic risks in overseas operations
  • Rising raw material prices
  • Project delays and increased risks due to climate change
  • Potential decline in construction capabilities due to labor shortages
  • Increasing cybersecurity threats
  • Supply chain issues due to geopolitical risks
  • Technology leakage risks
  • Uncertainty in emerging market demand
  • Intensified competition from new entrants

Innovations

2024: Introduction of Digital Welding Management System

Overview
Developed and introduced a new system for digital management of welding quality to reduce construction errors and improve quality.
Impact
30% reduction in welding defect rate, 20% improvement in construction efficiency

2023: Development of Environmentally Friendly Tank Materials

Overview
Developed new materials with improved corrosion resistance and reduced environmental impact, and rolled them out to product lines.
Impact
20% extension of product lifespan, 15% reduction in environmental impact

2022: Introduction of AI-Utilizing Construction Management Technology

Overview
Introduced AI-based progress and quality inspection system to reduce construction risks and promote efficiency.
Impact
15% shortening of construction period, improved quality inspection accuracy

2021: Enhancement of Safety and Quality Assurance System

Overview
Built and began operating a quality assurance platform integrating internal and external safety standards.
Impact
40% reduction in safety incidents

2020: Expansion of Environmental Solutions through Subsidiary Acquisition of Environmental Research Company

Overview
Strategically invested by making an environmental survey company a subsidiary to diversify environmental business.
Impact
20% increase in environmental-related sales

Sustainability

  • Promotion of energy-saving design for LNG tanks
  • Improvement of manufacturing processes to reduce environmental impact
  • Strengthening of asbestos surveys and environmental conservation activities
  • Promotion of sustainable material use
  • Participation in regional environmental education and awareness activities