[Company analysis] Toyo Seikan Kaisha, Ltd. (東洋製罐グループホールディングス)

「Toyo Seikan Kaisha, Ltd. (東洋製罐グループホールディングス)」is a major non-ferrous metal company headquartered in Tokyo. From metal cans to PET bottles, they have the industry's largest production volume in the drinking water container business in Japan. As of 2013, this company is changed its governing structure into the current holding company system. The number of consolidated employees is approximately 18,419.

 

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	Toyo Seikan Kaisha, Ltd.
Company name (Japanese)	東洋製罐グループホールディングス
Date of establishment	Monday, June 25, 1917
Headquarters location	〒141-8627 東京都品川区東五反田2丁目18番1号
Capital	11,095
Consolidated sales	793,119
Consolidated operating profit	25,443
Consolidated total assets	1,068,781
Consolidated capital	649,812
Capital adequacy ratio	60.8%
Consolidated number of employees	18,419

 

 

 

2. Summary and Features

 
「Toyo Seikan」was established in 1917 in Osaka City. At the time of its founding, they established not only a steel sheet machinery and equipment company for container materials but also a school facility for canning and filling to build a comprehensive packaging container business. Since the beginning of the World War II, steel plates were treated as wartime supplies, so「Toyo Seikan」decided to manufacture plastic containers.

After the war, they were trying to expand their business territory to paper and glass containers. Today, 「Toyo Seikan」is handling various fields of the packaging container business, from cans, PET bottles, glass bottles, phthalates. And they acheived the No. 1 market share in Japan. In recent years, they have applied the technologies accumulated in container manufacturing to support functional materials such as aluminum substrates for magnetic disks.

Normally, the packaging container is generally coated with a film to prevent oxidation of the contents and corrosion of the container itself.「Toyo Seikan」uses its technology to handle functional materials such as optical films for liquids. They also developed a pigment to be applied to pottery and now they are supplying it to a pottery manufacturer.

It is said that recycling is a very important issue due to the characteristics of packaging containers. For this reason, 「Toyo Seikan」is conducting chemical recycling business for PET bottles through its subsidiary, and the amount of PET bottles they recycled is approximately 20,000 tons per year. This is equivalent to 10% of the total demand for PET bottles in Japan for one year.

「Toyo Seikan」started business in the field of life sciences, too. They have a newly developed high-performance DNA chip, an inspection system that utilizes microbial control technology, and a sterilization storage tank technology for various food and beverages. Especially, the hygiene management system for food ingredients made by「Toyo Seikan」 is highly evaluated in the food manufacturing industry.

In addition, the conventional drinking water bottle production process mainly uses water for cleaning the cans. But in this company, they developed the "TULC Can" that can significantly reduce the cost and environmental load without using any water during the bottle manufacturing process. Of course, the market share of  "TULC Can" is relatively small,「Toyo Seikan」plans to increase investment in order to reduce the manufacturing cost.

 

 

 

3. Major Business

 

■ Packaging container business

■ Steel plate related business

■ Functional Materials Business

■ Mechanical equipment business

■ Logistics business

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		779,469	785,278	793,119
Consolidated operating profit		36,273	31,870	25,443
Consolidated total assets		1,148,174	1,121,168	1,068,781
Consolidated net assets		725,838	720,207	649,812
Breakdown of sales	Packaging container business	657,340	656,730	655,671
	Steel plate related business	54,124	59,263	61,764
	Functional materials Business	35,887	37,031	41,072
	Real estate business	7,429	7,766	7,798
	Others	24,686	24,486	26,812