NIPPON FELT CO.,LTD..
3512・Standard Market・Textiles & Apparels
Felt Business
A manufacturing and sales business centered on Felt for Paper & Pulp, maintaining a high domestic market share
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment Net Sales | ¥8,773 million | ¥9,085 million | ↓ |
| Segment Operating Profit | ¥736 million | ¥506 million | ↑ |
| Segment Assets | ¥11,988 million | ¥11,521 million | ↑ |
| Depreciation and Amortization | ¥586 million | ¥447 million | ↑ |
| Increase in Property, Plant and Equipment and Intangible Assets | ¥531 million | ¥1,008 million | ↓ |
| Felt for Paper & Pulp Net Sales (of which overseas) | ¥7,379 million (overseas ¥1,812 million) | ¥7,590 million (overseas ¥1,690 million) | ↓ |
Business Details
Produces and sells papermaking felt (for paper & pulp) and general industrial felt products along with related products. This is the Group's core segment, accounting for approximately 93% of consolidated net sales. While maintaining a high domestic share for the paper & pulp industry, the segment is promoting expanded exports to Asian markets (China, Taiwan, Indonesia, and Korea). In addition to the parent company, the segment comprises Toyama Felt, Nip Hosei, Taiwan Huaerde, Rihuide Paper Machine Equipment (Shanghai), and NF Nonwoven.
Recent Overview
Despite lower sales, operating profit improved substantially, up 45% year on year, due to production efficiency gains
Net sales in the Felt Business for FY2026 (ending March 2026) were ¥8,773 million (down 3.4% year on year), marking a second consecutive year of declining sales. Domestically, Felt for Paper & Pulp sales declined by ¥211 million due to contraction of the paper & pulp market, and Other Industrial Products sales also declined by ¥100 million due to lower filter sales. On the other hand, segment operating profit increased substantially to ¥736 million (from ¥506 million in the prior period) due to the review and streamlining of the production system. Overseas, sales showed signs of recovery in China, Indonesia, and other markets, with overseas net sales increasing 7.2% year on year to ¥1,812 million.
Key Products
Growth Drivers
- Promoting expanded sales of Felt for Paper & Pulp to Asian markets (China, Indonesia, Taiwan, and Korea)
- Increasing domestic market share through expansion of the product lineup for tissue paper machines and paperboard machines
- Efforts to develop new sales expansion in the Indian market
- Expanding sales of high-value-added industrial products such as filters for dust masks
- Cost reduction and profit margin improvement through review and streamlining of the production system
- Strengthening the Wire product lineup through the addition of Valmet Technologies products
- Promoting overseas sales expansion of Shoe Press Belt
Risks
- Continuation of the declining demand trend in the domestic paper & pulp industry (declining trend in paper and paperboard production volume)
- Risk of fluctuations in sales volume in Asian markets such as China and Indonesia
- Sharp rises in raw material prices such as synthetic fibers and fuel (due to prolonged Middle East tensions and yen depreciation)
- Credit risk related to business partners (track record of recording allowance for doubtful accounts)
- Uncertainty regarding future outlook due to the impact of US trade policy
- Foreign exchange risk (rising raw material and fuel costs due to yen depreciation, impact on overseas sales)
Last updated: June 24, 2026