Tokuyama Corporation
4043・Prime Market・Chemicals
Chemical Products
Tokuyama's earnings-base segment manufacturing and selling basic chemical products such as Caustic Soda and Vinyl Chloride
| Period | Current | Previous | Change |
|---|---|---|---|
| Net Sales (including intersegment transactions) | ¥106,226 million | ¥115,002 million | ↓ |
| Operating Income | ¥9,701 million | ¥10,832 million | ↓ |
| Operating Margin | 9.1% | 9.4% | ↓ |
| Segment Assets | ¥59,065 million | ¥64,335 million | ↓ |
| Depreciation and Amortization | ¥2,758 million | ¥2,624 million | ↑ |
Business Details
Manufactures and sells Caustic Soda, Soda Ash, Calcium Chloride, sodium bicarbonate, sodium silicate, hydrogen, Vinyl Chloride Monomer, PVC Resin, Propylene Oxide, Chlorinated Solvents, and other products. Supplies mainly to domestic and overseas industries such as chemicals, building materials, food, and water treatment, with large-scale electrolysis facilities centered on the Tokuyama Plant as a key strength. Affiliated companies include Sun Arrow Chemical Co., Ltd. (manufacturing and sales) and Tokuyama Soda Sales Co., Ltd. (sales). Under the Medium-Term Management Plan 2025, the segment is positioned to pursue efficiency improvements and secure stable earnings.
Recent Overview
Declining exports of Caustic Soda, a slump in Vinyl Chloride market conditions, and rising logistics costs combined to reduce both revenue and profit
In the Chemical Products segment for FY2026 (ending March 2026), net sales were ¥106,226 million (down 7.6% year on year) and operating income was ¥9,701 million (down 10.4% year on year), representing lower revenue and profit. Caustic Soda saw lower profit due to reduced export volume, Vinyl Chloride Monomer / PVC Resin due to a decline in overseas market conditions, and Soda Ash / Calcium Chloride due to lower sales volume and increased logistics costs. In the final year of the Medium-Term Management Plan 2025, the segment is summarized as having struggled due to deteriorating market conditions.
Key Products
Growth Drivers
- Continued reduction of manufacturing costs and improvement of production efficiency
- Improved profitability through domestic sales price revisions
- Diversification of earnings through commercialization of new products such as magnesium hydride
- Securing sales volume through recovery of export volumes for Caustic Soda and other products
Risks
- Profit pressure from declining overseas market conditions for Vinyl Chloride products
- Decrease in sales volume due to sluggish demand in domestic construction and manufacturing industries
- Rising manufacturing costs due to surging raw material and fuel costs (electricity, naphtha, etc.)
- Intensifying price competition due to increased rivalry from Chinese and other Asian competitors
- Deteriorating profitability due to increased logistics costs
- Lower earnings due to reduced export volume of Caustic Soda
Last updated: June 19, 2026