Tokushu Tokai Paper Co., Ltd.
3708・Prime Market・Pulp & Paper
Industrial Materials Business
Core segment engaged in Corrugated Board Base Paper & Kraft Paper and electric power sales business
| Period | Current | Previous | Change |
|---|---|---|---|
| Net Sales (Full Year) | ¥44,467 million | ¥44,793 million | ↓ |
| Operating Income (Full Year) | ¥1,169 million | ¥1,089 million | ↑ |
| Segment Assets | ¥62,279 million | ¥61,268 million | ↑ |
| Depreciation and Amortization (Full Year) | ¥3,459 million | ¥3,246 million | ↑ |
| Increase in Property, Plant and Equipment and Intangible Assets (Capital Expenditure) | ¥4,443 million | ¥5,957 million | ↓ |
Business Details
Tokushu Tokai Paper Co., Ltd. handles paper sales and electricity sales, while Shin Tokai Paper Co., Ltd. is responsible for manufacturing and sales of paper and pulp, Tokushu Tokai Materials Co., Ltd. supplies paper raw materials, and Shin Tokai Logistics Co., Ltd. handles transportation and storage. The majority of sales are directed to Japan Tokai Industrial Paper Supply Co., Ltd., an equity-method affiliate, participating in the industrial packaging materials market. The electricity sales business through the Akamatsu Hydroelectric Power Plant is also one of the revenue sources.
Recent Overview
Net sales slightly decreased, but operating income increased due to rebound in electricity sales revenue
In the Industrial Materials Business for FY2026 (ending March 2026), sales to Japan Tokai Industrial Paper Supply Co., Ltd. were sluggish, causing sales volume to fall below the same period of the previous year, resulting in net sales of ¥44,467 million (down 0.7% year on year). On the other hand, the rebound increase in electricity sales revenue from the recovery in operation of the Akamatsu Hydroelectric Power Plant, which had been shut down due to equipment trouble in the same period of the previous year, contributed, resulting in an increase in operating income to ¥1,169 million (up 7.4% year on year). Net sales to Japan Tokai Industrial Paper Supply Co., Ltd., the main customer, during the period were ¥35,808 million.
Key Products
Growth Drivers
- Continued contribution to electricity sales revenue from stable operation of the Akamatsu Hydroelectric Power Plant
- Firm demand for corrugated board and other packaging materials backed by mail-order demand
- Expectations for improvement in energy cost structure through construction of a new waste boiler for the Industrial Materials Business (Shimada Plant, scheduled for completion in October 2027)
- Improvement in profitability through the penetration of price revisions
Risks
- Risk of sales concentration on Japan Tokai Industrial Paper Supply Co., Ltd. (net sales during the period: ¥35,808 million)
- Risk of sluggish demand for packaging materials such as corrugated board due to reduced purchasing amid domestic price increases
- Risk of loss of electricity sales revenue due to equipment trouble at the Akamatsu Hydroelectric Power Plant and other facilities
- Risk of rising manufacturing costs due to soaring prices of raw materials and fuel such as pulp and fuel, and the weak yen
- Risk of intensified competition due to excess production capacity across the paper manufacturing industry as a whole
Last updated: June 24, 2026