Shinsho Corporation

Basic Information

Stock Code: 8075
Industry: Wholesale Industry
Category Detail: Building Materials, Electrical Equipment & Metal Wholesalers
Prefecture: Osaka Prefecture
Establishment Year: November 1946
Listing Year: October 1961
Official Website: https://www.shinsho.co.jp/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Rasa Shoji, Alconix, Godo Steel, Kaneso, Hatsuhoshi Corporation, Okaya & Co., Hakudo, Sato Shoji, Kanox, Hanwa, Sanshin Electronics, UEX

Overview

Shinsho Corporation is a long-established wholesale company founded in 1946, specializing primarily in the sale of steel and non-ferrous metals. As the core trading company of the Kobe Steel Group, it handles the distribution of a diverse range of metal products and related machinery.

Current Situation

For the fiscal year ended March 2023, Shinsho Corporation recorded consolidated net sales of 584.8 billion yen and operating profit of 13.5 billion yen, establishing a stable position in the steel and non-ferrous metal wholesale business. Strengthening collaboration with Kobe Steel, it operates as the group's core trading company, distributing a variety of metal products and industrial machinery. Having obtained ISO 14001 certification, it is proactive in environmental initiatives and is expanding internationally through overseas bases in Southeast Asia, North America, and Europe. In recent years, it has invested approximately 23 billion yen to expand processing capabilities, focusing on strengthening its sales network and improving logistics efficiency. It is also advancing measures for sustainable resource use and reducing environmental impact. Moving forward, it aims to respond to growing demand in the Asian market, strengthen integrated steel and machinery equipment businesses, and diversify its revenue base. While reinforcing its management foundation and pursuing technological innovation, it is focusing on corporate activities that fulfill social responsibilities.

Trivia

Interesting Facts

Historic trading company founded in 1946 in Osaka City as Tahei Shoji.
Serves as the core of the Kobe Steel Group as an equity-method affiliate.
Focuses on environmental management as an ISO 14001 certified company.
Operates numerous overseas bases centered on Southeast Asia.
In addition to metal wholesaling, handles a wide range of machinery and IT equipment.
Corresponds to a broad market through multiple subsidiaries.
Strengthened business foundation with over 23 billion yen investment in overseas processing.
Achieves stable supply through long-cultivated trust in the industry.
Organizational structure where steel unit executive directly oversees management.
Provides advanced processing services in diverse domestic and international markets.
Engages in recycling business aiming for sustainable resource use.
Provides diverse products and services in collaboration with a wide range of partner companies.
Actively fulfills corporate social responsibilities.
Also handles conveying equipment and logistics systems for factories.
Safety supplies and disaster prevention products are included in business areas.

Hidden Connections

As part of the Kobe Steel Group, has strong collaboration in material supply.
Supports regional economies and industries through domestic and international processing business expansion.
Integrates and provides industrial machinery and metals through diverse subsidiaries.
Also serves as a funding destination for major shareholder Mizuho Trust Bank.
Processing bases in Southeast Asia hold important positions in regional industrial development.
Extends widely from material distribution from steel mills to processing and sales.
Develops and sells efficiency technologies for logistics and supply chains.
ISO 14001 acquisition serves as a model example of environmentally conscious management in the industry.

Future Outlook

Growth Drivers

Expansion of steel demand in Southeast Asian markets
Increasing demand for infrastructure redevelopment domestically and abroad
Growing demand for environmentally friendly products and recycling
Evolution and普及 of industrial machinery and IT-related equipment
Expansion of demand for diverse processing services
Business area strengthening through collaboration with Kobe Steel
Expansion of global supply chains
Increasing demand for energy-saving and resource-saving products
Trends in ESG investments supporting sustainability management
Efficient logistics base operations utilizing technological innovation
Growth in demand for aging social infrastructure countermeasures
Promotion of digital transformation

Strategic Goals

Double processing capacity in Southeast Asia
Business operations with 30% reduction in environmental impact
Strengthening of diversified revenue structure
Maintenance and expansion of ISO 14001 and other certifications
Business efficiency improvement through digital technology introduction
Establishment of stable shareholder return policy
Building sales system maximizing group synergies
Acceleration of new market development and product development
Sustainable growth integrated with local communities
Next-generation talent development and diversity promotion

Business Segments

Steel Products Distribution

Overview

Stably supplies high-quality steel products and fabricated items to the construction and manufacturing industries.

Competitiveness

Integrated supply system through network with Kobe Steel

Customers

Construction companies
Manufacturers
Automotive parts makers
Building materials dealers
Plant equipment companies
Shipbuilders
Energy-related companies
Machinery manufacturers
Infrastructure operators
Heavy industry manufacturers

Products

Steel plates
Steel pipes
Steel fabricated products
Construction materials
Vehicle steel
Piping materials
Structural metal parts
Prefab components
Custom-processed steel
Construction auxiliary materials

Non-Ferrous Metals Distribution

Overview

Provides a wide variety of non-ferrous metal products to diverse industries and also engages in processing business.

Competitiveness

Integration of diverse non-ferrous metal products and processing technologies

Customers

Electronics manufacturers
Automakers
Telecommunications equipment makers
Building materials manufacturers
Precision machinery makers
Logistics equipment makers
Industrial materials trading companies
Industrial machinery makers
Energy equipment makers
Aircraft parts makers

Products

Aluminum sheets and materials
Copper wires and materials
Stainless steel
Non-ferrous metal scrap
Alloy materials
Electronic materials parts
Welding materials
Surface treatment chemicals
Precision parts materials
Special metal materials

Industrial Machinery and IT Equipment Sales

Overview

Provides advanced machinery equipment, IT devices, and maintenance services to manufacturing sites, supporting production efficiency.

Competitiveness

Extensive machinery lineup and robust support system

Customers

Manufacturing factories
Automotive assembly makers
Electronics factories
Logistics centers
Plant operators
Port cargo handlers
Steel manufacturing factories
Inspection equipment users
Robot adopters
Automation equipment sellers

Products

Processing machinery
Inspection devices
Industrial robots
Control systems
IT solutions
Maintenance services
Conveying equipment
Automated warehouse systems
Safety protection supplies
Machinery parts

Metal Processing Services

Overview

Provides optimized product lineup for diverse industries using specialized metal processing technologies.

Competitiveness

High-level processing technology and consistent quality control

Customers

Automotive parts makers
Aircraft parts makers
Precision equipment makers
Construction materials makers
Various machinery makers
Infrastructure-related companies
Industrial machinery makers
Electronics makers
Trading company processing divisions
Housing equipment makers

Products

Press-processed parts
Machined parts
Welded assemblies
Surface treatments
Special processed products
Precision parts
Metal promotional items
Building components
Machinery parts
Processing consignment services

Environmental and Recycling Business

Overview

Supports resource-recycling society through distribution of recycling materials and provision of environmentally friendly products.

Competitiveness

Comprehensive recycling system and group collaboration

Customers

Manufacturing factories
Demolition contractors
Scrap dealers
Recycling facilities
Municipalities
Waste management companies
Environmental companies
Non-ferrous metal recyclers
Steel makers
Equipment maintenance companies

Products

Steel scrap recovery
Non-ferrous scrap materials
Recycled material supply
Environmental materials
Sorting services
Waste management support
Energy-saving equipment
Waste processing systems
Green procurement
Environmental consulting

Competitive Advantage

Strengths

Stable foundation as the core trading company of the Kobe Steel Group
Handling of a wide range of steel and non-ferrous metal products
Sales network covering domestic and international locations
Advanced processing technology and consistent quality control
ISO 14001 certification for environmental management
Integrated sales of industrial machinery and IT-related equipment
Service expansion through extensive subsidiary network
Long-term customer relationships and industry trust
Aggressive overseas expansion centered on Southeast Asia
Risk diversification through diversified revenue sources
Strong financial funding base
Specialized metal recycling business
Efficient logistics system
Experienced management and employees
Responsive capabilities to a wide customer base

Competitive Advantages

Stable raw material supply through close collaboration with Kobe Steel
Value-added services based on advanced metal processing technology
Global sales network built through multinational expansion
Broad product lineup in industrial machinery and IT equipment fields
Brand as an environmentally conscious company with ISO 14001 certification
Expansion strategy for sales and processing bases in Southeast Asia
Customized product provision responding to customer needs
Service consistency utilizing diverse subsidiaries
Stable customer base from long-term trading relationships
Creation of environmental value through recycling business
Cost competitiveness secured by efficient resource procurement
Rapid response achieved through flexible sales organization
Strong credit from the corporate group
Continuous provision of products adapting to technological innovation
Risk reduction of market fluctuations through diversified management

Threats

Instability in sales prices due to global steel supply-demand fluctuations
Risk of significant raw material price fluctuations
Increased business burden from strengthened environmental regulations
Impact of global trade friction and tariff policies
Intensified technological innovation and price competition from emerging companies
Revenue uncertainty due to exchange rate fluctuations
Supply chain disruption risks
Impact on overseas business from geopolitical risks
Impact on sales from sudden changes in customer demand
Threats to cybersecurity
Risk of productivity decline due to labor shortages
Impact on logistics and production from natural disasters

Innovations

2023: Expansion of Processing Business in Southeast Asia

Overview: Invested approximately 23 billion yen to strengthen processing bases in Southeast Asia. Promoting productivity improvement in steel processing.
Impact: Successfully improved local production capacity and expanded sales

2022: Introduction of Environmentally Friendly Steel Distribution System

Overview: Introduced a new system to improve distribution process efficiency and achieve energy savings for the purpose of reducing environmental impact.
Impact: Achieved both CO2 emission reductions and cost reductions

2021: Strengthening of IT Solutions Business

Overview: Began in-house development of IoT control systems for industrial machinery to support manufacturing efficiency.
Impact: Contributed to acquiring new clients and improving service quality

2020: Launch of Sustainability Management Promotion Program

Overview: Systematized ESG goals to enhance the sustainability of corporate activities.
Impact: Improved corporate image and investor evaluation

Sustainability

Strengthening operation of ISO 14001 environmental management system
Active collection and utilization promotion of recycling materials
Logistics reform for energy savings and CO2 emission reductions
Development and sales promotion of environmentally friendly products
Collaboration with local communities through CSR activities
Reduction of environmental impact in the supply chain
Promotion of diverse human resource utilization and work style reform
Strengthening compliance and thorough internal controls
Contribution to sustainable resource use and circular society
Advanced safety and health management system
Transparent environmental information disclosure
Strengthening resource-saving and waste reduction activities