Kikusui Chemical Industries

Basic Information

Stock Code
7953
Industry
Other Products
Category Detail
Chemicals & Chemical Products
Prefecture
Aichi Prefecture
Establishment Year
May 1959
Listing Year
November 1988
Official Website
https://www.kikusui-chem.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Maruo Calcium, Dainichiseika Color & Chemicals, Dai Nippon Toryo, Nippon Paint Holdings, Kansai Paint, Chugoku Marine Paints, Fujikura Composites, SK Kaken, DIC, Sakata INX, artience, Takasago Iron Works, Toami

Overview

Kikusui Chemical Industries is a leading company in the industry founded in 1959, specializing in the manufacturing and sales of architectural finishing materials and special functional materials.

Current Situation

Kikusui Chemical Industries recorded consolidated sales of approximately 22.2 billion yen and net assets of approximately 9.1 billion yen for the fiscal year ended March 2022, establishing a solid management foundation. The core architectural finishing materials business supports the majority of sales, with diverse sales bases and factories primarily in Japan, maintaining a customer-focused sales network. Technologically, it focuses on R&D for special functional materials and is proactive in new product development. It has obtained ISO 9001 certification to strengthen its quality management system and, learning from past misconduct, strives to thoroughly enforce corporate ethics and compliance. Moving forward, it plans to enhance development of high-performance paints and eco-friendly products, accelerating deployments toward a sustainable society. It is also pursuing production efficiency improvements via digitalization and IoT, aiming to expand share in domestic and international markets. Inter-industry collaborations and M&A are under consideration as part of strategies for business diversification and growth.

Trivia

Interesting Facts

  • Started business initially as a building materials trading company.
  • Has a history of receiving multiple technology awards for special functional materials development.
  • ISO 9001 certification obtained in 1999, one of the early adopters in the industry.
  • Changed to current company name in 1963 and strengthened corporate foundation.
  • Head office located in Sakae, Naka-ku, Nagoya, contributing to local economy.
  • Past executive misconduct was reported but led to strengthened corporate ethics.
  • Achieved management efficiency through absorption merger with parent company.
  • Focuses on unique nanotechnology applications in the paint field.
  • Actively promotes employee participation in management through employee stock ownership.
  • Rare listing on both Tokyo and Nagoya Stock Exchanges.
  • Related company with base in Shanghai advancing overseas expansion.
  • Holds one of the top domestic shares in architectural finishing materials.
  • Established dedicated technology lab for architectural paints to strengthen development.
  • Features long-term asset management-oriented business strategy.
  • Owns multiple factories in local industrial parks for production diversification.

Hidden Connections

  • Transfer of engineers from Nippon Paint contributed to technological enhancement.
  • Deeply rooted in Nagoya City's industrial network.
  • Develops special functional materials beyond paints through related company collaboration.
  • Sales cooperation relationships with multiple companies in the domestic building materials market.
  • Established company with strength in proposing residential building materials since long ago.
  • Provides indirect support to local cultural and sports activities.
  • Established international standard quality management system through ISO certification.
  • Supplies key materials to public works of several local governments.

Future Outlook

Growth Drivers

  • Increasing demand for eco-friendly paints domestically and internationally
  • Expanding needs for building durability improvements
  • Growth in urban redevelopment and renovation markets
  • Efficiency gains from IoT and smart factory introductions
  • Customer base expansion through strengthened regionally focused sales system
  • Acceleration of new product development using cutting-edge technologies
  • Increased demand for eco-products due to government environmental regulation strengthening
  • Expansion of building materials demand in overseas markets, especially Asia
  • Supply chain optimization and digitalization
  • Corporate governance enhancement supporting sustainable management
  • Differentiation by responding to diversifying customer needs
  • Business area expansion through M&A and partnerships

Strategic Goals

  • Expand eco-friendly product sales ratio to over 60%
  • Improve domestic and international architectural finishing materials share by 20%
  • Increase R&D expenses to 5% of sales
  • Fully automate production lines using digital technologies
  • Set company-wide goals based on sustainability metrics

Business Segments

Architectural Finishing Materials Manufacturing

Overview
Provides finishing materials with excellent durability and design for the architectural sector.
Competitiveness
High-quality product lineup leveraging long years of industry expertise
Customers
  • Construction companies
  • Housing manufacturers
  • Renovation contractors
  • Real estate developers
  • Design offices
  • Public facility managers
Products
  • Exterior finishing materials
  • Interior finishing materials
  • Waterproofing materials
  • Repair materials
  • Adhesives

Paint and Special Functional Materials Manufacturers

Overview
Develops and supplies diverse functional paints and additives for industrial uses.
Competitiveness
Technological development capabilities and product customization to meet customer needs
Customers
  • Automotive parts manufacturers
  • Industrial machinery manufacturers
  • Painting factories
  • Chemical manufacturers
  • Research institutions
Products
  • High heat-resistant paints
  • Anti-rust paints
  • Chemical-resistant paints
  • Functional additives
  • Special pigments

Eco-Friendly Product Development Support

Overview
Supports development of sustainable paints compliant with environmental regulations.
Competitiveness
Pioneering R&D capabilities in eco-friendly technologies
Customers
  • Green building operators
  • Eco-product development companies
  • Environmental consulting firms
Products
  • Low-VOC paints
  • Water-based paints
  • Recycled raw material paints

Products for Building Maintenance Operators

Overview
Provides repair and waterproofing materials for aging buildings.
Competitiveness
Proposal capabilities based on extensive construction know-how
Customers
  • Maintenance companies
  • Facility management companies
  • Painting contractors
Products
  • Repair materials
  • Waterproofing materials
  • Durable paints

R&D Support Services

Overview
Provides resources for material testing and new product development.
Competitiveness
Advanced analysis capabilities and comprehensive research support system
Customers
  • Universities
  • Research institutions
  • Paint-related ventures
Products
  • Test paint samples
  • Analysis services
  • Joint new material development

Product Supply for Overseas Building Materials Markets

Overview
Supplies building materials tailored to overseas market needs.
Competitiveness
Product adaptability to regional characteristics and logistics network
Customers
  • Asian building materials trading companies
  • Overseas construction companies
  • Export agents
Products
  • Architectural finishing materials
  • Waterproofing materials
  • Special functional paints

Industrial Equipment Maintenance

Overview
Provides paints for protecting and extending the life of industrial equipment.
Competitiveness
Long-term protection technology with high-durability products
Customers
  • Chemical plants
  • Manufacturing factories
  • Infrastructure managers
Products
  • Heat-resistant paints
  • Anti-rust paints
  • Chemical-resistant paints

Residential Renovation Market

Overview
Provides high-quality renewal products for residential renovations.
Competitiveness
Ease of application and high finish quality
Customers
  • Renovation contractors
  • Homeowners
  • Real estate management companies
Products
  • Exterior repaint paints
  • Interior finishing materials
  • Waterproofing materials

Public Building Repair Business

Overview
Specializes in supplying materials for repair and maintenance of public facilities.
Competitiveness
Proven track record with numerous MLIT-certified products
Customers
  • Local governments
  • Public project contractors
  • Construction consultants
Products
  • Standard repair materials
  • High-durability repair materials
  • Eco-friendly materials

Competitive Advantage

Strengths

  • High technological expertise in architectural finishing materials
  • Extensive sales network and customer-focused sales approach
  • Thorough quality management through ISO certification
  • Development capabilities in special functional materials
  • Solid financial base and stable management
  • Diverse product portfolio
  • Regionally rooted sales organization
  • Long industry experience and trust
  • Group network including subsidiaries
  • Ongoing product improvements and innovation

Competitive Advantages

  • Established sales channels in key domestic and international markets
  • Specialized manufacturing technology for architectural finishing materials
  • Expansion of eco-friendly product lineup
  • Responsiveness to market needs in high-function paints
  • Product customization to meet customer needs
  • New technology creation through R&D investment
  • Reliability from delivery track record across diverse industries
  • Stable capital strength and fundraising capabilities
  • Rapid response through regionally integrated service system
  • Business management considering sustainability

Threats

  • Intensifying price competition from major paint manufacturers
  • Risk of raw material price fluctuations
  • Demand decline due to construction industry sentiment changes
  • Increased product improvement costs from stricter environmental regulations
  • Competitor entry and intensified competition in overseas markets
  • Risk of productivity decline from labor shortages
  • Risk of patent litigation or intellectual property infringement
  • Potential supply chain disruptions from natural disasters

Innovations

2023: Launch of New Low-VOC Eco-Friendly Paint Series

Overview
Developed and launched low volatile organic compound (VOC) paints compliant with environmental regulations.
Impact
Achieved reduced environmental impact and enhanced market competitiveness

2024: Development of Anti-Stain Coating Using Nano Technology

Overview
Completed new coating material with superior durability and anti-stain performance using nanotechnology.
Impact
Succeeded in product differentiation and creating high-value-added products

2022: Promotion of Production Line Digitalization Using IoT

Overview
Introduced IoT technology into production processes to enhance efficiency and quality control.
Impact
15% productivity improvement and yield enhancement

2023: Commercialization of Paints Using Recycled Raw Materials

Overview
Commercialized eco-friendly paints using recycled raw materials from waste.
Impact
Realized sustainable resource utilization

2024: Development of High Heat-Resistant Nano-Particle Composite Paint

Overview
Developed innovative paint enduring high-temperature environments by incorporating nanoparticles.
Impact
Contributes to new market expansion and differentiation

Sustainability

  • Development and expanded sales of low-VOC products to reduce VOC emissions
  • Reduced environmental impact of paint raw materials through recycled resource use
  • Improved factory energy efficiency and CO2 emission reductions
  • Maintenance of ISO 14001 environmental management system certification
  • Internal initiatives to reduce waste and promote recycling
  • Regular implementation of environmental education training
  • Active participation in local environmental conservation activities
  • Promotion of environmental considerations in the supply chain
  • Enhanced product compliance with sustainable building standards
  • Support for tree-planting activities by employee volunteers
  • Efforts toward building a resource-recycling society
  • Promotion of green procurement