Valqua

Basic Information

Stock Code
7995
Industry
Chemicals
Category Detail
Chemicals & Chemical Products
Prefecture
Tokyo
Establishment Year
April 1932
Listing Year
October 1961
Official Website
https://www.valqua.co.jp/
TSE Information
TSE Information
Yahoo! Finance
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Other Companies
Kuraray, Sumitomo Seika, Denka, Hodogaya Chemical, Nippon Shokubai, Kaneka, Daicel, Riken Technos, Gun-ei Chemical Industry, Arakawa Chemical Industries, Yotai, Nichias, Toyo Kanetsu

Overview

Valqua is a leading company in the chemical industry founded in 1932, specializing in industrial packings and high-functionality materials, leading the sealing materials market across industries with diverse resin, rubber, and metal products.

Current Situation

Valqua recorded consolidated net sales of approximately ¥62.2 billion and net profit of approximately ¥6.7 billion for the fiscal year ended March 2023, maintaining a stable financial foundation. It holds high market share both domestically and internationally in its core industrial packing and gasket products, providing a wide variety of resins, rubber, and metal products. Focusing on technological development, it continues to develop new materials and high-functionality products based on the technological prowess of its fluororesin product 'Valflon.' Environmentally, it works to reduce environmental impact at ISO 14001-certified factories, promoting renewable energy adoption and energy-saving initiatives. Its medium- to long-term strategy aims for market expansion domestically and overseas, strengthening solar power facilities and overseas subsidiaries. In recent years, it has pursued production efficiency improvements through IoT utilization and digitalization, aiming for sustainable growth. It is also enhancing product diversification through collaboration with major subsidiaries and customer needs response. Moving forward, it plans to boost business competitiveness centered on technological innovation and global expansion.

Trivia

Interesting Facts

  • Valqua's name is a coined term from 'Value' and 'Quality.'
  • Has a history of successfully commercializing Japan's first fluororesin products.
  • Began manufacturing high-functionality rubber products at the Nara factory.
  • Owns numerous consolidated subsidiaries including Valqua Techno.
  • Establishing joint ventures in various countries to advance global expansion.
  • Transferred to Tokyo and Osaka Stock Exchanges First Sections in 1975.
  • Established subsidiaries in Singapore, Thailand, China, Taiwan, etc.
  • Kyushu Valqua engages in solar power generation and sells electricity.
  • Changed trade name to Valqua Corporation in 2018.
  • Roots trace back to Japan Brake Lining Manufacturing Co., Ltd., founded in 1927.
  • Owns multiple factories certified with ISO 9001 and ISO 14001.
  • Expanded China business through capital tie-up with Daikin Industries.
  • Holds top-class domestic share in industrial packings.
  • Actively launching multi-material packing products.
  • Head office located in Oosaki, Shinagawa-ku, Tokyo.

Hidden Connections

  • Strengthened competitiveness in the Chinese market through business and capital alliance with Daikin Industries.
  • Expanding presence in Asian markets through establishment of local subsidiaries in Taiwan and Thailand.
  • Demonstrates rigorous environmental and quality management with ISO 9001 and ISO 14001 certifications.
  • Secures financial stability with many financial institutions listed as major shareholders.
  • Proprietary fluororesin products receive high acclaim in the industry.
  • Solar power generation at Kyushu Valqua contributes to promoting regional renewable energy.
  • Shares technology and manufacturing capabilities among consolidated subsidiaries to produce high-quality products.
  • Forms extensive sales network with sales offices in major cities like Tokyo, Osaka, and Nagoya.

Future Outlook

Growth Drivers

  • Increased demand for sealing materials due to higher functionality of industrial machinery
  • Infrastructure expansion in Asia and emerging countries
  • Development of environmentally durable products to meet stricter regulations
  • Demand for new materials from electrification of automotive industry
  • Productivity improvements through digital transformation
  • Expansion of parts supply for renewable energy-related equipment
  • Optimization of manufacturing processes using IoT technology
  • Diversification of global supply chains
  • Increased proposals for customized products tailored to customer needs
  • Industry-wide trends toward energy and resource savings

Strategic Goals

  • Expand overseas sales ratio to over 50%
  • Improve environmentally friendly product ratio to over 70%
  • Increase R&D expenses to sales ratio by 15% year-over-year
  • Achieve carbon neutrality at factories
  • Maximize efficiency through smartization of production equipment
  • Create over ¥30 billion in sales from new businesses
  • Strengthen quality assurance by increasing ISO-certified factories
  • Significantly expand community contribution programs
  • Improve customer services through digital technology utilization
  • Promote diverse talent development and diversity

Business Segments

Plant and Machinery Parts Business

Overview
Supplies high-functionality parts and sealing materials for chemical and petrochemical plants and industrial machinery.
Competitiveness
Broad response to customer needs through advanced material technology and diverse product lineup.
Customers
  • Chemical plant operators
  • Manufacturing companies
  • Petrochemical companies
  • Electric power companies
  • Machinery manufacturers
  • Power plant operators
  • Shipyards
  • Automotive manufacturers
  • Industrial equipment maintenance companies
  • Equipment engineering companies
Products
  • Industrial packings
  • Gaskets
  • Sealing materials
  • Metal seals
  • Fluororesin processed parts
  • High-functionality rubber products
  • Joint sheets
  • Heat-resistant sealing materials
  • Compression molded products
  • Special sealing materials

Automotive Parts Business

Overview
Provides sealing materials and packings for the automotive industry, earning high trust.
Competitiveness
High-quality products backed by years of track record and customization capabilities.
Customers
  • Automotive manufacturers
  • Automotive parts manufacturers
  • Motorcycle manufacturers
  • Transportation equipment manufacturers
  • Automotive maintenance companies
  • Automotive dealers
Products
  • Sealing materials
  • Gaskets
  • Industrial rubber products
  • Heat-resistant packings
  • Precision rubber parts
  • Engine parts seals

Electronics and Electrical Parts Business

Overview
Develops and provides high-functionality resins and sealing materials for electronic parts.
Competitiveness
High-precision material processing technology and heat/chemical resistance performance.
Customers
  • Electronics manufacturers
  • Semiconductor manufacturers
  • Precision machinery manufacturers
  • Electrical parts manufacturers
  • Research institutions
Products
  • Fluororesin parts
  • Conductive materials
  • High-functionality resin parts
  • Insulating materials
  • Heat-resistant sealing materials

Construction and Equipment Maintenance Business

Overview
Provides sealing materials necessary for maintenance of construction plants and equipment.
Competitiveness
Custom response capabilities tailored to on-site needs.
Customers
  • Construction companies
  • Equipment management companies
  • Plant maintenance contractors
  • Public facility managers
Products
  • Packings
  • Gaskets
  • Anti-vibration materials
  • Chemical-resistant sealing materials

Overseas Subsidiaries and Global Business

Overview
Sells products tailored to regional needs through overseas subsidiaries.
Competitiveness
Balance of local production systems and Japanese quality.
Customers
  • Manufacturing companies in Asia
  • Overseas plant operators
  • Local sales agents
Products
  • Industrial packings
  • Sealing materials
  • Resin products
  • Rubber products

R&D and Technical Services Business

Overview
Conducts research and development of high-functionality materials and provides technical support.
Competitiveness
Years of know-how and advanced analytical technology.
Customers
  • In-house business divisions
  • Client companies
  • Industry-academia collaboration partners
Products
  • Material research
  • Manufacturing technology development
  • Quality control services
  • Technical support

Competitive Advantage

Strengths

  • Long-standing high-quality packing technology
  • Diverse material product lineup
  • Global manufacturing and sales network
  • High compliance with environmental and safety standards
  • Solid financial base and stable earnings
  • Customization capabilities to meet customer needs
  • Reliability from ISO certifications
  • Active R&D investment
  • Abundant patents and technological assets
  • Long-term partnership building
  • Global market responsiveness
  • Advanced optimization of manufacturing processes
  • Diversified business portfolio
  • Regionally focused sales deployment
  • Stable brand recognition

Competitive Advantages

  • Industry-leading industrial packing manufacturing technology
  • Diversity of chemical-resistant and high heat-resistant fluororesin products
  • Comprehensive overseas production and sales bases centered on Southeast Asia
  • Response to unique customer needs through custom design
  • Product stability from long-cultivated quality management system
  • New material development capabilities from strengthened R&D organization
  • Promotion of environmentally friendly product development and manufacturing
  • Market expansion through collaboration with capital partners
  • Diverse product lines compatible with multiple industries
  • Global regulatory compliance framework
  • Product competitiveness using high-functionality composite materials
  • Strong domestic and international customer base
  • Comprehensive quality assurance and after-sales service
  • Manufacturing efficiency improvements through digital technology introduction
  • Aggressive overseas market development strategy

Threats

  • Risk of fluctuations in international raw material prices
  • Price competition from global competitors
  • Impact of strengthened product quality regulations
  • Market structure changes from material technology innovations
  • Profit pressure from exchange rate fluctuations
  • Risk of increased counterfeit products in emerging markets
  • Increased manufacturing costs from stricter environmental regulations
  • Delays in responding to diversifying customer needs
  • Supply chain disruption risks
  • Decline in R&D capabilities due to engineer shortages
  • Impact on overseas bases from geopolitical risks
  • Reduced capital investment from economic downturns

Innovations

2024: Development of New High Chemical-resistant Fluororesin Material

Overview
Successfully developed a fluororesin material with 30% improved chemical resistance compared to conventional products.
Impact
Enhanced product durability and strengthened market competitiveness.

2023: Advancement of Digital Factory Transformation

Overview
Launched a production efficiency improvement project utilizing IoT in factories.
Impact
Improved production line utilization rate by 10%, contributing to cost reductions.

2022: Commercialization of Heat-resistant Composite Material Products

Overview
Launched new products using composite materials of high heat-resistant resins and metals.
Impact
Developed new customers for high-temperature environment compatible products.

2021: Enhancement of Overseas Production Bases

Overview
Increased production capacity at Vietnam factory by 20% to strengthen supply system.
Impact
Secured foundation for Asian market expansion.

2020: Introduction of Environmentally Friendly Green Materials

Overview
Developed products incorporating biomass materials to reduce environmental impact.
Impact
Expanded lineup of sustainable products.

Sustainability

  • Promotion of CO2 emission reduction plans at factories
  • Utilization of renewable energy through solar power system installation
  • Strengthened development and sales expansion of environmentally friendly products
  • Continuous operation of ISO 14001 environmental management system
  • Waste reduction and recycling promotion activities
  • Participation in environmental cooperation programs with local communities
  • Implementation of improvement measures based on environmental impact assessments of products
  • Formulation and operation of sustainable procurement standards
  • Enhanced environmental education for employees
  • Environmental awareness improvement activities across the supply chain
  • Contribution to energy savings through development of high-efficiency production technologies
  • Ensuring transparency through regular environmental report publication