[Company analysis] Tokuyama Corporation (トクヤマ)

「Tokuyama Corporation (トクヤマ)」 is one of Japan's leading general chemical companies and the world's fourth largest silicon manufacturing company. This company was founded in 1918, and is headquartered in Tokyo, but its original location was Yamaguchi Prefecture. Major development and production bases are also located in Yamaguchi Prefecture. The number of consolidated employees is about 5,471.

 

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	Tokuyama Corporation
Company name (Japanese)	トクヤマ
Date of establishment	February 16, 1918
Headquarters location	〒101-8618 東京都千代田区外神田 1-7-5
Capital	10,000
Consolidated sales	324,661
Consolidated operating profit	35,262
Consolidated total assets	379,630
Consolidated capital	163,525
Capital adequacy ratio	43.1%
Consolidated number of employees	5,471

 

 

 

2. Summary and Features

 
At the time of its establishment, the sodium section, such as electrolytic soda, was the main product of 「Tokuyama Corporation 」. Founded in 1918 by Iwai Katsujiro(岩井勝次郎), the company was called「Nihon Soda Kogyo Co., Ltd.(日本曹達工業株式会社)」. Later, in 1936, this company name was changed to「Nihon Soda Co., Ltd.」then it changed again to the current name in 1994. According to the growth of Japanese chemistry industry, 「Tokuyama Corporation 」expanded their business territory to various chemical products including cement

Recently,「Tokuyama Corporation 」have promoted business diversification and expanded their business fields in various industries such as semiconductor-related products including polysilicon for semiconductors, IT and electronics, eyeglass-related materials, and dental materials. Especially, as for high-purity polysilicon, it has the second largest market share in the world.

A distinctive part of Tokuyama is the cement business. Tokuyama has the largest cement factory in Japan, and uses 94% of the waste materials that is discharged from its own factory as a raw material for cement. Not only they use their own waste materials, but also they accept external waste materials. 

「Tokuyama Corporation 」also included consumer products to their lineup. In 1982, they launched a dehumidifier in the household goods field, and they have had a high market share in recent years. However, as a result of business coordination within Tokuyama, this division was eventually transferred to「Okamoto Industries(オカモト株式会社)」in 2004. The plastic molding business was also conducted through「Nanbu Kasei(南部化成)」, but this was also purchased by the mold-related company「Arrk(アーク)」and Tokuyama withdrew.

Recently「Tokuyama Corporation 」is facing a business crisis. In 2009, Tokuyama decided to build a plant in Malaysia, where electricity rates are low, to focus on silicon production of solar cells, which had been rapidly increasing in demand at the time. In 2011, when the construction of the factory started, they announced the construction of the second factory. However, in the second half of 2011, the price of solar cells dropped sharply, making it difficult to break through the breakeven point before the plant started operation.

With this responsibility, the president was resigned, and the size of the Tokyo headquarters was greatly reduced. Nevertheless, Tokuyama got the largest deficit in their history. Of couse, the financial situation had deteriorated considerably. Eventually, on September 28, 2016, the Malaysian factory that caused this deficit was sold to「OCI Company Ltd.」 in Korea for about 10 billion yen.

 

 

 

3. Major Business

 

■ Chemicals business
Soda, chloralkali, PVC, NOC

■ Special Products business
Electronic materials (polycrystalline silicon), fumed silica, high-purity chemicals for the electronics industry, aluminum nitride

■ Cement business
Cement and resource environment

■ Life amenity business
Fine chemicals, NF, synthetic resin films, ion exchange membranes, dental materials

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		299,106	308,061	324,661
Consolidated operating profit		38,533	41,268	35,262
Consolidated total assets		424,433	361,949	379,630
Consolidated net assets		135,976	136,591	163,525
Breakdown of sales	Chemicals business	83,346	93,546	98,380
	Special Products business	67,726	58,678	59,668
	Cement business	82,995	87,345	92,366
	Life amenity business	50,751	51,579	54,380
	Others	52,124	54,526	62,377
	Adjustments	-37,836	-37,615	-42,511