Sumitomo Seika Chemicals Company, Limited.
4008・Prime Market・Chemicals
Superabsorbent Polymer
Sumitomo Seika's core segment, accounting for approximately 78% of net sales.
| Period | Current | Previous | Change |
|---|---|---|---|
| Net Sales | ¥116,121 million | ¥115,542 million | ↑ |
| Operating Income | ¥11,524 million | ¥8,088 million | ↑ |
| Operating Margin | 9.9% | 7.0% | ↑ |
| Capital Expenditures (Increase in Tangible and Intangible Fixed Assets) | ¥8,282 million | ¥14,739 million | ↓ |
| Depreciation and Amortization | ¥2,574 million | ¥2,488 million | ↑ |
| Segment Assets | ¥84,393 million | ¥78,611 million | ↑ |
Business Details
This segment manufactures and sells superabsorbent polymer (SAP) for hygiene materials such as disposable diapers and sanitary products, pet sheets, and industrial materials such as water-blocking materials for cables. In addition to domestic operations (Sumitomo Seika Co., Ltd.), consolidated subsidiaries in Belgium, South Korea, Singapore, China, and Taiwan handle manufacturing and sales, with global operations centered on China and Asia. In FY2026 (ending March 2026), net sales were ¥116,121 million, accounting for approximately 78% of consolidated net sales, making it the mainstay of group revenue.
Recent Overview
Operating income rose sharply by 42.5% year on year, driven by lower raw material and fuel prices.
In FY2026 (ending March 2026), net sales were ¥116,121 million (up 0.5% year on year), roughly flat compared to the prior period. While sales volume increased in markets such as China, this was offset by the pass-through of lower raw material and fuel market prices to selling prices, which constrained sales growth. Operating income achieved substantial growth, reaching ¥11,524 million (up 42.5% year on year). Although fixed costs increased, the main driver was improved manufacturing costs resulting from the decline in naphtha prices from ¥75,600/KL in the prior period to ¥65,200/KL. Expansion of superabsorbent polymer manufacturing facilities at the Singapore consolidated subsidiary progressed, with construction in progress increasing from ¥20,060 million at the end of the prior period to ¥28,357 million.
Key Products
Growth Drivers
- Continued increase in demand for superabsorbent polymer in Asian markets, centered on China and India
- Expanded production capacity through the enhancement of superabsorbent polymer manufacturing facilities at the Singapore subsidiary (construction in progress increased to ¥28,357 million)
- Improved manufacturing costs due to lower raw material and fuel (naphtha) prices
- Improved unit costs and productivity through rationalization projects
- Development and launch of environmentally friendly new products and development of recycling technology for used SAP
Risks
- Foreign exchange risk (erosion of sales and profit due to yen appreciation)
- Increased manufacturing costs due to rising raw material and fuel (naphtha) prices
- Risk of intensifying competition and demand fluctuations in the Chinese market
- Risk of construction delays and cost overruns for new facilities in Singapore
- Surges in oil-related product prices and resource supply instability due to military conflicts in Middle Eastern countries including Iran and potential closure of the Strait of Hormuz
- Global trade and supply chain disruption stemming from significant US tariff increase measures
Last updated: June 26, 2026