Sankyo Kasei

Basic Information

Stock Code
8138
Industry
Wholesale
Category Detail
Textiles, Chemicals & Paper Wholesalers
Prefecture
Osaka Prefecture
Establishment Year
July 1946
Listing Year
July 1982
Official Website
https://www.sankyokasei-corp.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Kaneko Seed, Kyowa Nissei, Sanyo Boeki, Sanyo Kogyo, Tomoe Kogyo, Bansei Denki, Nagase Sangyo, Inabata Sangyo, Meiwa Sangyo, Somar, Soda Nikka, Mita Sangyo, Nippon Hodo Sangyo

Overview

Sankyo Kasei is a mid-sized chemical products wholesaler based in Osaka City, founded in 1946. Its core business focuses on selling synthetic resins, building materials, and industrial chemicals, mainly in the western Japan market.

Current Situation

Sankyo Kasei recorded consolidated sales of approximately 21.6 billion yen and consolidated net profit of about 76 million yen for the fiscal year ended March 2021, maintaining stable performance. In its flagship chemical business segment, it wholesales a wide range of chemical products including chemical industrial chemicals, synthetic resins, and dyes, primarily in western Japan. In the building materials business, it sells housing building materials and manufactures and sells woodworking products. Positioned as a mid-sized company among competitors, its strengths lie in specialized expertise and regionally focused services. In recent years, it has focused on improving product quality, expanding the building materials sector, and diversifying sales channels. It thoroughly complies with environmental regulations, safety management for poisons and deleterious substances, and legal requirements, while building systems for sustainable chemical distribution. In the future, it aims to meet domestic and international manufacturing needs, while considering productivity improvements and enhanced customer services through DX. Its shareholder composition is stable with major shareholders, aiming for a solid mid- to long-term management foundation.

Trivia

Interesting Facts

  • Founded in 1946 shortly after the war, with a long history
  • Established firm position as a specialist chemical wholesaler in western Japan
  • One of the few trading companies with manufacturing and sales permits for poisons and deleterious substances
  • Characterized by regionally focused sales style
  • Dual pillar management of synthetic resins and building materials
  • Handles a wide range of products from industrial chemicals to woodworking products
  • Head office located in Kita-Kuhōjichō, Chūō-ku, Osaka City
  • Major shareholders are Black Clover Limited and Shinkō Kikaku LLC
  • Mid-sized company with approximately 170 consolidated employees
  • Implementing proactive capital policies such as treasury share cancellation
  • Holds stable earnings base in the chemical wholesaling industry
  • Building materials business positioned as a growth pillar
  • High expertise in safe management of poisons and deleterious substances
  • Major subsidiaries include Dōdō Kōgyō
  • Customer base ranges widely from chemical manufacturers to construction companies

Hidden Connections

  • Major shareholder Black Clover Limited has networks with domestic and international chemical-related companies.
  • Strong ties with construction and manufacturing companies in western Japan due to regionally focused sales.
  • Strengthening building materials sector through collaboration with major subsidiary Dōdō Kōgyō.
  • Possibly connections to pharmaceutical raw materials leveraging poison and deleterious substance handling know-how.
  • Differentiates market segments from competitors like Nagase Sangyo and Inabata Sangyo in chemical wholesaling.
  • Historically listed on the Osaka Securities Exchange Second Section, with strong ties to local financial figures.
  • Increasing opportunities for collaboration with local governments and environmental groups through environmentally friendly product development.
  • Contributes to supporting the management foundation of local SMEs through stable supply of chemical materials.

Future Outlook

Growth Drivers

  • Increased demand for safety-compliant products due to strengthened environmental regulations
  • Stable growth in housing construction market and new builds/renovations demand
  • Market expansion for environmentally friendly products like biodegradable resins
  • Improved sales and logistics efficiency through DX utilization
  • Further deepening of regionally focused sales
  • Increasing chemical material needs from SMEs
  • Enhanced trust through strengthened collaboration with local communities
  • Superiority of domestic supply over imported overseas products

Strategic Goals

  • Expand product lineup toward zero environmental impact
  • Grow into the regional No. 1 company in building materials and chemical wholesaling
  • Improve profitability through business efficiency via DX
  • Establish procurement and sales systems based on sustainability
  • Strengthen one-stop services responding to diverse customer needs
  • Promote corporate citizenship activities for deeper coexistence with local communities
  • Optimize domestic and international logistics networks
  • Aggressive investment and diversification into new business areas
  • Make safety management system cutting-edge and model for legal compliance
  • Improve employee satisfaction and create diverse, inclusive workplace environment

Business Segments

Chemical Business Segment

Overview
Supplies raw materials and materials to the chemical industry, supporting product development and production in various industries.
Competitiveness
Handling of highly specialized products and regionally focused operations centered in western Japan
Customers
  • Chemical manufacturers
  • Paint manufacturers
  • Building materials manufacturers
  • Electronic component manufacturers
  • Transportation equipment companies
  • Daily goods manufacturers
  • Research institutions
  • Printers
  • Textile companies
  • Plastic molding companies
Products
  • Synthetic resins
  • Dyes
  • Pigments
  • Industrial chemicals
  • Paints
  • Dyeing auxiliaries
  • Poisons and deleterious substances
  • Pigment intermediates
  • Specialty chemicals
  • Water treatment agents
  • Industrial adhesives

Building Materials Business Segment

Overview
Provides high-quality building materials and woodworking products for the housing market, supporting comfortable living environments.
Competitiveness
Rapid supply through regional proximity and customization capabilities
Customers
  • Housing construction companies
  • Remodeling contractors
  • Wood processing companies
  • Interior manufacturers
  • Building materials wholesalers
  • Housing equipment manufacturers
  • Carpentry shops
  • DIY specialty stores
Products
  • Housing building material panels
  • Woodworking products
  • Insulating materials
  • Soundproof panels
  • Fire-resistant materials
  • Construction adhesives
  • Safe building materials

Environment and Safety Related Segment

Overview
Provides safe products and environmental conservation materials in response to strengthened environmental regulations.
Competitiveness
Expertise in strict poison handling and environmental legal compliance
Customers
  • Environmental companies
  • Public institutions
  • Research institutions
  • Manufacturing environmental management departments
  • Waste disposal companies
Products
  • Poisons and deleterious substance management materials
  • Environmentally friendly products
  • Biodegradable resins
  • Safe storage containers
  • Environmental purifiers

Industrial Materials Segment

Overview
Provides materials and safety products that contribute to improving production efficiency at industrial sites.
Competitiveness
Rich product variations and flexible response to customer needs
Customers
  • Manufacturing industry
  • Factory managers
  • Logistics companies
  • Industrial materials sellers
Products
  • Industrial sealing materials
  • Insulating sheets
  • Chemical-resistant gloves
  • Packaging materials
  • Industrial adhesives

R&D Support Segment

Overview
Supplies specialty chemicals and high-function materials tailored to advanced research needs.
Competitiveness
Stable supply of high-quality chemicals for research
Customers
  • Chemical research labs
  • University research institutions
  • Pharmaceutical companies
  • Materials development companies
Products
  • Specialty chemicals for analysis
  • High-purity solvents
  • Analysis reagent sets
  • Research intermediates

Transportation Equipment Related Segment

Overview
Provides raw materials and materials specialized for transportation equipment products.
Competitiveness
Development support for high-function products and understanding of industry needs
Customers
  • Automotive parts manufacturers
  • Transportation equipment manufacturers
  • Electronic equipment manufacturers
Products
  • Resin materials
  • Adhesives
  • Paints
  • Functional chemicals

Daily Goods Related Segment

Overview
Supplies various raw materials and materials to the daily goods industry.
Competitiveness
Product lineup corresponding to diverse applications
Customers
  • Household goods manufacturers
  • Daily goods wholesalers
  • Retailers
Products
  • Synthetic resins
  • Dyes
  • Pigments
  • Industrial chemicals

Piping and Building Equipment Segment

Overview
Improves work efficiency through supply of materials for construction sites.
Competitiveness
Provision of materials tailored to site needs
Customers
  • Equipment construction companies
  • Construction companies
  • Maintenance companies
Products
  • Scaffolding materials
  • Stepladders
  • Ladders
  • Construction auxiliary materials

DIY Market Segment

Overview
Deploys a diverse product lineup for the DIY market to support individual users.
Competitiveness
Product provision responsive to consumer needs
Customers
  • DIY specialty stores
  • Home centers
  • General consumers
Products
  • Building materials
  • Paints
  • Adhesives
  • Tools

Logistics and Import/Export Segment

Overview
Supports import/export by providing packing and materials compatible with international logistics.
Competitiveness
Utilization of multinational distribution networks
Customers
  • Logistics companies
  • Import trading companies
  • Manufacturing industry
Products
  • Packing materials
  • Import/export related services
  • Transportation packaging materials

Safety Management Supplies Segment

Overview
Supports legal compliance with products necessary for safety management.
Competitiveness
Know-how specialized in poison and deleterious substance management
Customers
  • Manufacturing safety personnel
  • Chemical plants
  • Research facilities
Products
  • Safe storage containers
  • Protective gear
  • Monitoring equipment

Competitive Advantage

Strengths

  • Deep knowledge of chemical products as a specialist trading company
  • Strong regionally focused network in the western Japan market
  • Wide product lineup and diversified business operations
  • Stable financial base and management structure
  • Ongoing efforts to improve product quality
  • Thorough legal compliance and safety management
  • Advanced customer response capabilities and customized proposals
  • Agile decision-making as a mid-sized trading company

Competitive Advantages

  • Gaining trust through expertise in the chemical wholesaling industry
  • Expansion of customer base through combined building materials business
  • High legal compliance capabilities in handling poisons and deleterious substances
  • Unique logistics and sales network based in western Japan
  • Ability to provide diverse chemical products in a one-stop manner
  • Flexible and rapid customer response compared to major competitors
  • Broad customer base from regional SMEs to large enterprises
  • Strong relationships with customers built over many years

Threats

  • Risk of price competition due to intensifying rivalry with industry giants
  • Potential profit pressure from fluctuations in raw material prices
  • Cost increases due to strengthened environmental regulations
  • Market share absorption by new entrants
  • Competitive pressure from expanded imports of foreign products
  • Decline in competitiveness due to delays in technological innovation
  • Impact of reduced domestic demand and population decline
  • Risk of supply chain disruptions

Innovations

2023: Launch of environmentally friendly biodegradable resins

Overview
Developed and began selling biodegradable resin products to reduce environmental impact.
Impact
Successfully created new demand in response to strengthened environmental regulations.

2022: Construction of digital sales platform

Overview
Revamped online order and fulfillment system for customers to improve convenience.
Impact
Improved order efficiency by 20% and contributed to higher customer satisfaction.

2021: Strengthening of safety management system

Overview
Strictened management processes for poisons and deleterious substances to ensure thorough legal compliance.
Impact
Achieved improved safety and reduced legal risks.

2024: Development of energy-saving building material products

Overview
Developed new high-insulation building materials to support housing energy efficiency.
Impact
Contributes to energy cost reductions and strengthens market competitiveness.

2023: Introduction of chemical traceability system

Overview
Digitally manages chemical distribution processes to enhance transparency.
Impact
Improved customer trust and logistics efficiency.

2022: Development of adhesives for new applications

Overview
Developed high-performance adhesives for the automotive industry and began expanding sales.
Impact
Contributed to customer base expansion and sales growth.

Sustainability

  • Thorough strengthening of safety management system for poisons and deleterious substances
  • Expansion of environmentally low-impact product lineup
  • Promotion of waste reduction and recycling
  • Active participation in environmental conservation activities with local communities
  • Strengthening of occupational safety and health management and employee training