AZEARTH Corporation

Business Details

Centered on DuPont™ Tyvek® Chemical Protective Clothing, the segment manufactures and sells protective clothing and environmental equipment/materials for countermeasures against asbestos, dioxin, infectious diseases, radioactive dust, and hazardous chemical substances. Customers span a wide range including pharmaceutical companies, semiconductor manufacturers, electric power companies, chemical plants, construction contractors, and government agencies, and continuous sales are expected given the limited-use nature of the disposable products. The segment operates distribution centers in Okayama and Saitama and a mother plant in Akita (AZEARTH Design Center Akita), and is also focusing on new protective clothing categories such as flame-resistant, high-visibility, and arc flash protective clothing.

Recent Overview

FY2026 (ending April 2026) saw both revenue and profit increase, with revenue up 3.7% and segment profit up 13.3%, and profitability improved.

In the Protective Clothing & Environmental Equipment/Materials business for FY2026 (ending April 2026), revenue was ¥4,800 million (up 3.7% year on year) and segment profit was ¥559 million (up 13.3% year on year), achieving both revenue and profit growth. Sales of personal protective equipment grew for demand from cleanrooms at pharmaceutical company and semiconductor manufacturing plants, and in the field of countermeasures against hazardous chemical substances such as dioxin and chemicals. On the other hand, while contract signings progressed in the new protective clothing category of flame-resistant, arc flash, and high-visibility products, and in the safety and environmental equipment field such as dust collectors, results fell short of the initial plan.

Key Products

Growth Drivers

• Continuous demand for personal protective equipment for cleanrooms at pharmaceutical company and semiconductor manufacturing plants
• Emergence of demand for protective clothing and protective equipment accompanying the strengthening of autonomous chemical substance management systems due to the enforcement of the revised Industrial Safety and Health Regulations, etc.
• Focus on new protective clothing categories such as flame-resistant, high-visibility, and arc flash protective clothing, and the launch of the new brand "Tekka"
• Expansion of the solutions business combining personal protective equipment with equipment in the safety and environmental equipment field
• Continuous demand for personal protective equipment for countermeasures against livestock infectious diseases such as highly pathogenic avian influenza
• Strengthened approaches to potential customers utilizing the comprehensive information site "Bougofuku no Chie.com"
• New business development leveraging the operations of the Vietnam local subsidiary (AZEARTH VIETNAM CO., LTD.) as a foothold

Risks

• Continued uncertainty in achieving the plan as the new protective clothing category of flame-resistant, arc flash, and high-visibility products and the safety and environmental equipment field fell short of the initial plan
• Risk that the emergence of demand from chemical substance regulation compliance is delayed relative to the original plan
• Profit pressure from increased selling, general and administrative expenses (amortization expenses) accompanying the launch of the new core system (May 2025)
• Risk of reduced capital expenditure and purchasing by manufacturing customers due to changes in trade policy such as US tariff increases
• Fluctuation in demand for protective clothing for general industrial use due to seasonal factors such as extreme heat
• Impact on the next medium-term plan as the new protective clothing and safety/environmental equipment fields fell short of the plan in the final year of the Medium-Term Management Plan (May 2023 to April 2026)