TAYCA CORPORATION
4027・Prime Market・Chemicals
Functional Materials Business
Materials business centered on titanium dioxide and fine particle products for cosmetics ingredients and paint applications
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales Revenue (Full Year FY2026, ending March 2026) | ¥26,213 million | ¥28,495 million | ↓ |
| Segment Profit (Full Year FY2026, ending March 2026) | △¥606 million | ¥1,461 million | ↓ |
| Depreciation (Full Year FY2026, ending March 2026) | ¥2,655 million | ¥1,973 million | ↑ |
| Impairment Loss (Full Year FY2026, ending March 2026) | ¥3,261 million (¥3,170 million after company-wide elimination) | — | ↓ |
Business Details
Manufactures and sells titanium dioxide (general-purpose and fine particle), fine particle zinc oxide, surface-treated products, and other materials. Major customers are broadly divided into cosmetics ingredient applications (Fine Particle Titanium Dioxide and Fine Particle Zinc Oxide) and general-purpose paint applications (General-purpose Titanium Dioxide). Under the new medium-term management plan "MOVING-10 STAGE3," the cosmetics ingredients field continues to be positioned as a growth business, while the business environment for General-purpose Titanium Dioxide is rapidly deteriorating due to aggressive competition from overseas rivals, particularly from China, making fundamental structural reform an urgent priority.
Recent Overview
Impairment loss recorded amid rapid deterioration in the General-purpose Titanium Dioxide business environment, leading to a segment loss
In FY2026 (ending March 2026), the business environment for General-purpose Titanium Dioxide rapidly deteriorated due to a combination of aggressive sales offensives by overseas competitors, particularly from China, and declining domestic demand. An impairment loss of ¥3,261 million (attributable to the Functional Materials Business) was recorded, resulting in a segment loss of ¥606 million. Fine particle products for cosmetics ingredients also remained weak due to continued overseas inventory adjustments, and sales revenue decreased 8.0% year on year to ¥26,213 million. The depreciation burden (¥2,655 million, up ¥682 million year on year) associated with the expansion of manufacturing facilities for functional fine particle products also weighed on profitability.
Key Products
Growth Drivers
- Medium- to long-term demand expansion expected for Fine Particle Titanium Dioxide and Fine Particle Zinc Oxide for cosmetics ingredients (focus on maintaining and expanding sales while closely monitoring market conditions in each country)
- Expansion of production capacity through active capital investment in manufacturing facilities for functional fine particle products
- Policy of prioritizing expansion of growth businesses under the new medium-term management plan "MOVING-10 STAGE3" (FY2026–FY2029)
- Profitability improvement through fundamental structural reform of the General-purpose Titanium Dioxide business, including cost reduction
Risks
- Continuing downward pressure on sales volume and prices of General-purpose Titanium Dioxide due to aggressive low-price offensives from overseas competitors, particularly China
- Risk of prolonged overseas inventory adjustment for fine particle products for cosmetics ingredients
- Elevated fixed cost burden due to increased depreciation associated with expansion of manufacturing facilities for functional fine particle products
- Cost increase pressure due to persistently high raw material and fuel prices
- Risk of additional impairment in the General-purpose Titanium Dioxide business, depending on progress of structural reform
- Impact on the global economy from China's economic slowdown and US tariff policy
Last updated: June 23, 2026