Hanwa Co., Ltd.

Basic Information

Stock Code
8078
Industry
Wholesale
Category Detail
Building Materials, Electrical Equipment & Metal Wholesalers
Prefecture
Osaka Prefecture
Establishment Year
April 1947
Listing Year
August 1963
Official Website
https://www.hanwa.co.jp/
TSE Information
TSE Information
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Other Companies
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Overview

Hanwa Co., Ltd. is an independent major trading company founded in 1947, engaging in diversified operations centered on steel, resources, and energy, with multiple bases in Japan and overseas and a robust distribution network.

Current Situation

Hanwa Co., Ltd. achieved consolidated net sales of ¥2.6682 trillion, operating income of ¥64.1 billion, and net income of ¥51.5 billion for the fiscal year ended March 2023, maintaining a stable business foundation. In its core steel sector, it supplies a wide range of steel materials and plates to general contractors and manufacturers, holding a solid position in the industry as a key designated wholesaler for Nippon Steel. In resources, it has secured exclusive sales rights for minerals through large-scale investments in South Africa and Finland, and is advancing metal recycling. In the battery sector, it handles EV raw materials including recycling, covering the entire supply chain to pursue growth opportunities. In energy and daily materials, it focuses on stable supply of biomass fuel, while also operating newbuild transport vessels and plantation businesses. The chemical products sector has obtained ISCC Plus certification and is accelerating development of recycled products. Moving forward, it plans to pursue growth and strengthen profitability through diversification, overseas processing enhancement, and M&A.

Trivia

Interesting Facts

  • Has upheld free business development since founding, functioning as a major independent trading company
  • Global company with 19 domestic bases and 49 bases in 23 overseas countries
  • Early entrant into EV battery raw materials procurement and recycling
  • Owns dedicated vessel for wood pellet transport, achieving stable supply
  • Unique business structure handling both advanced steelmaking machinery and amusement machinery
  • Conducts region-rooted PR such as corporate signage at Hanshin Koshien Stadium and Tokyo Dome
  • One of the trading companies that grew pioneeringly in the post-war era since 1947 founding
  • Advanced diversification among steel and resource recycling trading companies
  • Early introduction of steel product cutting services and online trading
  • Founder Jiro Kita's spirit deeply rooted in corporate culture

Hidden Connections

  • Holds strong ties as a member of Nippon Steel's designated wholesaler group 'Tokka-kai'.
  • Collaborates with multiple major chemical companies in investments for EV battery materials manufacturing projects.
  • Diverse overseas bases form supply chains in deep collaboration with key manufacturing sites and trading firms.
  • Advertising billboards at Hanshin Koshien Stadium and Tokyo Dome contribute to regional PR and corporate credibility.
  • Battery recycling business includes collaborations with environmental NPOs.
  • Serves as negotiator with governments in various countries to counter resource nationalism.
  • Has formed capital and business alliances with multiple trading companies over the years to enhance market competitiveness.
  • Osaka and Tokyo head offices serve as close collaboration hubs with major general contractors and manufacturers.

Future Outlook

Growth Drivers

  • Increasing battery materials demand accompanying rapid EV market growth
  • Expansion of recycling business due to stricter environmental regulations
  • Energy diversification demand in Asia and the West
  • Stable growth in building materials demand for domestic general contractors
  • Market expansion through strategic strengthening of overseas bases
  • Rising biomass fuel demand
  • Improved distribution efficiency via digitalization and IT utilization
  • 开拓 of new business fields through diversification
  • Enhanced corporate value by building sustainable procurement systems

Strategic Goals

  • Establish top-class domestic position in EV battery raw materials market
  • Expand supply of renewable energy and biomass fuels
  • Achieve over 50% sales ratio for chemical recycled products
  • Increase overseas bases by 10% from current levels
  • Full implementation of sales digital transformation
  • Promote employee diversity and inclusion
  • Strengthen company-wide initiatives toward decarbonization goals
  • Business expansion of group through strategic M&A
  • Thorough management of sustainable supply chains
  • Maintain long-term financial soundness and achieve revenue and profit growth

Business Segments

Steel Wholesaling

Overview
Segment providing steel products and processing services to construction and manufacturing industries.
Competitiveness
Rapid inventory sales and processing capabilities through large warehouses
Customers
  • General Contractors
  • Steel Manufacturers
  • Machinery Manufacturers
  • Construction Companies
  • Steel Mills
Products
  • Steel Plates
  • Deformed Bars
  • Stainless Steel Materials
  • Steel Pipe Piles
  • Processing Services

Non-Ferrous Metal Recycling and Sales

Overview
Sales of diverse non-ferrous metal raw materials and recycled resources, and resource recovery business.
Competitiveness
Global procurement capabilities and strong entry into battery materials market
Customers
  • Electronic Parts Manufacturers
  • Automakers
  • Battery Manufacturers
  • Recycling Companies
Products
  • Copper Bullion
  • Aluminum
  • Nickel Compounds
  • Cobalt Products
  • Recycled Scrap

Energy and Fuel Wholesaling

Overview
Supplies a wide range of energy products from fossil fuels to biomass.
Competitiveness
Stable supply networks domestically and internationally, and transport vessel management capabilities
Customers
  • Power Generation Companies
  • Industrial Fuel Users
  • Shipping Companies
  • Renewable Energy Companies
Products
  • Heavy Fuel Oil
  • LNG
  • Woody Biomass Fuel
  • LPG
  • Coal

Chemicals and Lubricant Raw Materials

Overview
Handles sales and procurement of functional chemicals and recycled materials.
Competitiveness
Environmental responsiveness through ISCC Plus certification
Customers
  • Chemical Manufacturers
  • Lubricant Manufacturers
  • Agricultural Materials Manufacturers
  • Recycling Companies
Products
  • Synthetic Oil
  • Urea
  • Melamine
  • Bio Plastic Materials
  • Cosmetic Raw Materials

Food Wholesaling

Overview
Business stably supplying diverse food raw materials and processed products.
Competitiveness
Extensive import network and product diversity
Customers
  • Supermarkets
  • Food Processors
  • Restaurant Chains
  • Frozen Food Manufacturers
Products
  • Seafood
  • Chicken
  • Frozen Foods
  • Processed Foods

Timber and Building Materials Wholesaling

Overview
Provides import sales and processing services for construction timber and plywood.
Competitiveness
Distribution network with 19 domestic bases
Customers
  • Homebuilders
  • Home Centers
  • Construction Firms
  • Lumber Mills
Products
  • Housing Lumber Products
  • Plywood
  • Structural Plywood
  • Formwork Materials

Machinery and Amusement Facility Equipment

Overview
Machinery sales covering from processing machines to leisure equipment.
Competitiveness
Technical capabilities and track record in designing and manufacturing large equipment
Customers
  • Industrial Equipment Manufacturers
  • Amusement Park Operators
  • Manufacturers
  • Steel Processing Plants
Products
  • Steel Processing Machinery
  • Conveying Equipment
  • Amusement Machinery
  • Ferris Wheel Equipment

Environmental and Recycling Business

Overview
Deploys various recycling and dismantling services for environmental conservation.
Competitiveness
Specialized technology for hazardous substance neutralization
Customers
  • Municipalities
  • Industrial Waste Processors
  • Corporations
  • Environmental Groups
Products
  • Recycled Resource Collection
  • Incinerator Dismantling
  • Harmlessization Processing

Competitive Advantage

Strengths

  • Powerful sales network spanning nationwide and overseas
  • Diversified business structure enabling risk dispersion
  • Entry into raw material supply for emerging EV sector
  • High-quality inventory management and rapid steel supply capabilities
  • Management stability and solid financial foundation
  • Abundant non-ferrous metal recycling technology
  • Stable biomass fuel supply and logistics system
  • Product lineup responding to diverse industry needs
  • Active overseas investments and base strengthening
  • Environmental responsiveness via ISCC Plus certification
  • Advanced machinery and equipment design and construction capabilities
  • Long-term trusted relationships with customers
  • Flexible business development unique to independent operations
  • Synergy effects from group complementarity
  • Effective M&A strategy and business expansion power

Competitive Advantages

  • Pioneering establishment of procurement and sales system for diverse metal products and processed goods
  • Secures exclusive sales rights through long-term investments in resource mines, achieving stable supply
  • One-stop coverage from procurement to recycling of raw materials for next-generation EV batteries
  • Rapid response to market environment changes through flexible business development
  • Efficient inventory management and customer service via large proprietary warehouses and IT integration
  • Improved supply stability through ownership of biomass fuel transport vessels
  • Enhanced sustainability by expanding recycled chemicals and environmentally certified products
  • Unique comprehensiveness handling both industrial and amusement machinery
  • Synergy effects across businesses via extensive affiliate network
  • High degree of freedom in procurement and sales strategies unbound by keiretsu
  • Customer trust from long track record and region-rooted sales activities
  • Management strategy backed by diversified risk management and sound capital
  • New market development leveraging procurement and sales experience with advanced materials
  • Aggressive capture of growth markets through global expansion
  • Continuous strengthening of revenue base through business investments and M&A

Threats

  • Global resource price instability and strengthening resource nationalism
  • Risk of sharp demand drop due to economic fluctuations in key markets
  • Intensifying price competition from rivals leading to margin compression
  • Risks from regulatory tightening and trade friction in emerging markets
  • Increased operating costs from stricter environmental regulations
  • Changes in supply structure due to technological shifts in battery raw materials market
  • Logistics delays from pandemics or international situations
  • Uncertainty in raw material costs from exchange rate fluctuations
  • Political and economic risks in overseas base operations
  • Labor shortages and difficulties in talent acquisition
  • Unstable supply of recycled raw materials
  • Customer share erosion from heightened competition

Innovations

2024: Participation in Large-Scale EV Battery Materials Supply Project

Overview
Investing in nickel-cobalt compound manufacturing to ensure stable supply of raw materials for EV market.
Impact
Strengthens market competitiveness in response to future battery demand growth.

2023: Strengthening Chemical Recycling with ISCC Plus Certification

Overview
Obtained certification for recycled chemicals to promote reduced environmental impact and market expansion.
Impact
Improves competitive edge in environmentally responsive markets.

2022: Launch of IT Platform for Steel Distribution

Overview
Established online steel trading site to improve transaction efficiency and customer convenience.
Impact
Contributes to sales efficiency and customer base expansion.

2021: Battery Team Establishment to Strengthen Battery Business

Overview
Set up dedicated team to expand EV battery-related business and develop new ventures.
Impact
Increases handling of battery raw materials and acquires new customers.

2020: Start of Biomass Fuel Imports and Proprietary Transport Vessel Operations

Overview
Newly built dedicated vessel MIDORI for enhanced wood pellet imports, achieving supply stabilization.
Impact
Expands fuel supply network and improves reliability.

Sustainability

  • Promoting recycled resource utilization through ISCC Plus certification
  • Advancing CO2 emission reductions via biomass fuel imports
  • Expansion of resource recycling business
  • Product development and procurement aimed at reducing environmental impact
  • Energy-saving initiatives in business operations