Nankai Chemical industry Co., Ltd.

Business Details

Operates four businesses: Chlor-Alkali Products (Basic Chemicals) such as caustic soda and sodium hypochlorite; food additives and health foods (Functional Chemicals) such as sodium acetate and glucosamine; the soil fumigant chloropicrin (Agri); and Environmental Recycling (Waste Sulfuric Acid Recycling). Supplies manufacturing industries such as chemicals, steel, paper, and food, mainly in the Kansai region. In FY2026 (ending March 2026), this core business accounted for approximately 80.6% of consolidated net sales. The company focused on profitability-conscious sales, resulting in a substantial 17.3% year-on-year increase in segment profit.

Recent Overview

A profitability-focused sales strategy proved successful, achieving a 3.9% increase in net sales and a 17.3% increase in segment profit.

In the Chemical Products Business for FY2026 (ending March 2026), net sales were ¥16,979 million (up 3.9% year on year) and segment profit was ¥2,472 million (up 17.3% year on year), representing a substantial increase in profit. In Basic Chemicals, the company focused on strengthening its locally-rooted sales network and on sales activities conscious of improving profitability. In Functional Chemicals & Agri, the company continued to promote detailed sales tailored to customer needs and to enhance its supply chain. In Environmental Recycling, the company actively pursued new customer acquisition for waste sulfuric acid recycling. Separately, the consolidated subsidiary NC Kankyo Co., Ltd. was absorbed into the company effective April 1, 2025, and has since been dissolved.

Key Products

Growth Drivers

• Expansion of the Environmental Recycling business through new customer acquisition for waste sulfuric acid recycling
• Expansion of the desalination business at the Tosa Plant, launched in October 2023
• Improved profitability and expanded sales share in Basic Chemicals through strengthening of the regionally-rooted sales network
• Detailed sales promotion tailored to customer needs and supply chain enhancement in Functional Chemicals & Agri
• Creation of new recycling businesses leveraging the company's strengths
• Expansion of overseas sales channels through diversification of export destination countries
• Expansion of applicable crops through promotion of the tablet-type chloropicrin

Risks

• Intensifying price competition due to inflows of low-priced chemical products from overseas
• Cost increase pressure from persistently high raw material prices
• Impact on export profitability and raw material procurement costs from significant foreign exchange rate fluctuations
• Decline in sales volume due to reduced demand for certain products
• Risk of impairment of fixed assets (an impairment loss of ¥9 million was recorded in the current period)
• Impact on raw material procurement and logistics from geopolitical risks such as the prolonged situation in the Middle East
• Stabilization of the business structure following the change in scope of consolidation associated with the absorption-type merger of NC Kankyo Co., Ltd. and the completion of liquidation of Fuji Amide Chemical Co., Ltd.