[Company analysis] Mitsubishi Materials Corporation (三菱マテリアル)

「Mitsubishi Materials Corporation (三菱マテリアル)」is a non-ferrous metal company belonging to the 「Mitsubishi Group」. Currently, they handle refining of copper, cement production, metal processing (automobile parts production, etc.), aluminum cans, etc. In addition, through affiliated companies, this company also manufactures silicon wafers, electronic devices, nuclear fuel, and sell lumps and recycles. The number of consolidated employees is approximately 28,426.

 

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	Mitsubishi Materials Corporation
Company name (Japanese)	三菱マテリアル
Date of establishment	1871
Headquarters location	〒100-8117 東京都千代田区丸の内3-2-3
Capital	119,457
Consolidated sales	1,662,990
Consolidated operating profit	36,861
Consolidated total assets	1,938,270
Consolidated capital	723,337
Capital adequacy ratio	37.3%
Consolidated number of employees	28,426

 

 

 

2. Summary and Features

 
The origin of「Mitsubishi Materials」is「Mitsubishi Mining Industry(三菱鉱業)」which was established in April 1918 by「Mitsubishi Group」. In 1990, by the business integration between this「Mitsubishi Mining Industry」and「Mitsubishi Metal(三菱金属)」, current「Mitsubishi Materials」was established. In addition to its core business of coal mine management and mining, this company also carries out local railway business to transport mined resources.

As for the「Mitsubishi Mining Research Institute(三菱鉱業研究所)」, it is Japan's first private research institute, has conducted extensive research on coal and metals. One of the achievements is the carbide tool "Tridia", which was released in 1931. In 1942, they set up「Tokyo Metals Plant(東京金属工業所)」and started the full-scale carbide tool business.  

From World War II, this company also engaged in cement production to diversify their business. For this reason,「Mitsubishi Materials」have expanded the business by launching the Kurosaki Plant in 1955 and the Yokose Plant in 1969. Even now, they are building a vertically integrated system from the cement factory including the raw material mining business, transportation and sales business, remicon business and even they run the construction company.

In 1998,「Mitsubishi Materials」and「Ube Industries, Ltd.(宇部興産)」established integrated cement sales corporation,「Ube Mitsubishi Cement(宇部三菱シメント)」. And in 2002, they integrated the silicon wafer business with「Sumitomo Metal Industries(住友金属工業)」and established the current「SUMCO Corporation」. In 2004, their copper pipe business was integrated with「Kobe Steel, Ltd(神戸製鋼所)」. Like this, in recent years, this company trying to conduct business alliances and integrations with other companies frequently.

 

 

 

3. Major Business

 

■ Cement business
「Mitsubishi Materials」has a wide range of business fields, from manufacturing and sales of various cements, Remicon and secondary cement products to comprehensive construction. As for the cement production alone, it is third in Japan after「Taiheiyo Cement Corporation(太平洋セメント)」and「Sumitomo Osaka Cement Co., Ltd.(住友大阪セメント)」.

■ Metal business
It consists of four business fields: mining, refining, copper processing, and precious metals. In particular, the production volume of copper gold ingot is the third largest in Japan, next to「Pan Pacific Copper Co., Ltd.(パンパシフィック・カッパー)」and「Sumitomo Metal Mining Co., Ltd.(住友金属鉱山)」.

■ Processing business
This company have the top market share in Japan as a carbide tool manufacturing company.

■ High-performance products
The production volume of polycrystalline silicon wafers is the second largest in Japan after「Tokuyama Corporation(トクヤマ)」. 

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		1,304,068	1,599,533	1,662,990
Consolidated operating profit		59,761	72,819	36,861
Consolidated total assets		1,896,939	2,015,084	1,938,270
Consolidated net assets		710,195	768,495	723,337
Breakdown of sales	Cement business	174,361	188,612	195,028
	Metal business	621,313	542,833	549,232
	Processing business	126,834	149,635	159,632
	Electronic components business	56,472	523,071	557,323
	Aluminium business	154,017
	Others	171,069	195,381	201,772