[Company analysis] Showa Denko K.K.(昭和電工)

「Showa Denko K.K.(昭和電工)」is a chemical company that produces unique products in various fields such as petrochemical, chemical, inorganic, aluminum, and electronics. Although it is recognized as a general chemical company, they tend to focus on high-margin businesses such as electronic-related materials. The number of consolidated employees is about 10,603.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Showa Denko K.K.
Company name (Japanese)	昭和電工
Date of establishment	June 1939
Headquarters location	〒105-8518 東京都港区芝大門1-13-9
Capital	140,564
Consolidated sales	992,100
Consolidated operating profit	180,000
Consolidated total assets	1,075,746
Consolidated capital	465,340
Capital adequacy ratio	43.3%
Consolidated number of employees	10,603

 

 

 

2. Summary and Features

 
「Nihon Electrical Industries(日本電気工業)」, one of the predecessors of「Showa Denko 」, is known as the first company in Japan to commercialize aluminum. 「Showa Fertilizers(昭和肥料)」, another predecessor, was the first company in 1931 to operate Japan's first ammonium sulfate plant. In 1939, the two companies were merged, and the current Showa Denko was established. The company name is a combination of both companies' names.

At present,「Showa Denko 」is a comprehensive chemical company with more than 180 subsidiaries and affiliates around the world. This Showa Denko is one of the companies directly involved in the 2019 Japan-Korea trade friction. This is because Showa Denko has the world's top share of high-purity gases for electronic materials used for etching, cleaning gas, and film forming materials required for semiconductor and liquid crystal display manufacturing.

However, semiconductor manufacturing gas business is just one part of「Showa Denko 」who is a company that excels in other B2B chemical products. For example, they has the world's top market share in the field of high-quality, large-diameter graphite electrodes and high-purity aluminum foil for aluminum electrolytic capacitors. In addition, they are the world's first company who commercialized Lithium ion battery.

Showa Denko's main products in the petrochemical sector are basic petrochemical products such as ethylene and propylene, organic chemical products such as acetyl derivatives, and synthetic resins. Besides「Showa Denko 」also handle a wide range of products in the electronics and inorganic businesses, and even aluminum.

 

 

 

3. Major Business

 

■ Petrochemical
Petrochemical basic products (ethylene and propylene), organic chemical products (acetyl and allyl alcohol derivatives)

■ Chemicals
Industrial gases, industrial chemicals, high-performance chemicals, elastomer products, high-purity gases and chemicals for the semiconductor industry, resin composite products

■ Inorganic
Ceramic products such as abrasives, abrasives, and refractory materials, graphite electrodes for electric steelmaking furnaces, high-performance carbon products, etc.

■ Aluminum
Aluminum materials (rolled products, extruded products, forged products), heat exchangers, aluminum cans for beverages

■ Electronics
Compound semiconductor materials such as hard disks, SiC epi-wafers for power semiconductors, ultra-bright and high-power LEDs, rare earth magnet alloys for high-performance motors, lithium-ion battery materials

■ Others
Other various chemicals, resins, metals, electronic materials, etc.

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		671,200	780,400	992,100
Consolidated operating profit		42,100	77,800	180,000
Consolidated total assets		932,698	1,024,727	1,075,746
Consolidated net assets		311,231	364,997	465,340
Breakdown of sales	Petrochemical	185,800	251,100	268,900
	Chemicals	134,500	148,800	156,500
	Electronics	120,500	123,100	105,800
	Inorganic	50,900	73,400	266,100
	Aluminum	98,600	105,400	108,300
	Others	128,700	133,600	143,400
	Adjustments	-47,800	-55,100	-56,900