[Company analysis] Dowa Holdings Co., Ltd. (DOWAホールディングス)

「Dowa Holdings Co., Ltd. (DOWAホールディングス)」is a company whose main business is the refining, processing and recycling of non-ferrous metals, and is basically involved in all aspects of resource recycling. In the past, it was the core company of「Fujita Zaibatsu(藤田財閥)」, but now there is no capital relationship with them. The number of consolidated employees is approximately 6,600.

 

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	Dowa Holdings Co., Ltd.
Company name (Japanese)	DOWAホールディングス
Date of establishment	September 18, 1884
Headquarters location	〒101-0021 東京都千代田区外神田四丁目14番1号
Capital	36,437
Consolidated sales	452,928
Consolidated operating profit	18,671
Consolidated total assets	494,683
Consolidated capital	246,158
Capital adequacy ratio	49.8%
Consolidated number of employees	6,600

 

 

 

2. Summary and Features

 
「DOWA」was established in 1884 with the development of Kosaka Mine located in the northeastern part of Akita Prefecture, and has a history of about 130 years. At the time, the Kosaka mine was famous for "black ore", which was complicated by multiple impurities, including gold.

In 1900, this company developed a technology to remove impurities and extract only a small amount of effective substance and they succeeded in extracting copper from a mixture of copper, zinc and lead. Since then,「DOWA」have started a copper-related business, and they shortly became the largest copper manufacturer in Japan.

However, in 1985, the economical unstability caused by the「Plaza Agreement(プラザ合意)」damaged to the Japanese mining industry. Mining business in Japan was abandoned one after another due to the sharp rise and fall of metal prices, and「DOWA」also faced a management crisis.

At this time, based on the technology and know-how accumulated in the mining and refining business, they tried to conduct full-scale business diversification from 1990. After business restructuring in 2000, they are now developing five core businesses of "smelting", "environment, recycling", "electronic materials", "metal processing" and "heat treatment" through their subsidiaries.

One of the features of「DOWA」is that they collect the raw materials contained in PCs, mobile phones, automobiles, etc. and reuses them as raw materials, rather than just recycling waste. In other words, they are actively engaged in city mine business and carrying out recycling.

 

 

 

3. Major Business

 

■ Environment and recycling business
They handle disposal of waste, restoration of contaminated soil, and reuse of metal resources.

■ Non ferrous metal refining
「DOWA」has the refining technology of copper and zinc that it has accumulated over many years.

■ Electronic materials

■ Metal processing

■ Heat treatment processing equipment

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		410,503	454,754	452,928
Consolidated operating profit		33,990	30,948	18,671
Consolidated total assets		404,604	457,841	494,683
Consolidated net assets		227,821	247,762	246,158
Breakdown of sales	Environment and recycling business	60,239	60,256	65,014
	Refining business	187,517	197,370	201,838
	Electronic components business	60,122	75,441	62,689
	Metal processing business	75,456	90,486	91,981
	Heat treatment business	25,118	28,208	29,702
	Others	2,048	2,990	1,700