TOAGOSEI CO., LTD.
4045・Prime Market・Chemicals
Basic Chemicals Business
The largest segment of the TOAGOSEI Group. Manufactures and sells Electrolytic Products, Acrylic Monomer, and other products.
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment sales (external customers) Q1 FY2026 (ending December 2026) | ¥15,697 million | ¥17,865 million (Q1 FY2025, ended December 2025) | ↓ |
| Segment sales (including intersegment) Q1 FY2026 (ending December 2026) | ¥16,710 million | ¥18,776 million (Q1 FY2025, ended December 2025) | ↓ |
| Segment operating income Q1 FY2026 (ending December 2026) | ¥1,650 million | ¥2,282 million (Q1 FY2025, ended December 2025) | ↓ |
| Segment sales (external customers) full year FY2025 (ended December 2025) | ¥71,772 million | － | — |
| Segment operating income full year FY2025 (ended December 2025) | ¥8,752 million | － | — |
Business Details
Manufactures and sells Electrolytic Products such as caustic soda, caustic potash, and sodium hypochlorite, Sulfuric Acid, Industrial Gas, and Acrylic Monomer such as acrylic acid and acrylic acid esters. The segment operates through multiple affiliated companies including Toagosei Techno Gas Co., Ltd., TOAGOSEI SINGAPORE PTE. LTD., MT Ethylene Carbonate Co., Ltd., and Chubu Ekisan Co., Ltd., with manufacturing and sales operations both in Japan and overseas. Sales to external customers for FY2025 (ended December 2025) were ¥71,772 million, making it the largest segment within the Group, but sales to external customers for Q1 FY2026 (ending December 2026) were ¥15,697 million, down 12.1% year on year.
Recent Overview
Sales to external customers fell sharply in Q1, impacted by the discontinuation of Acrylic Monomer sales and price declines, resulting in a significant decline in both revenue and profit.
In Q1 FY2026 (ending December 2026), sales to external customers in the Basic Chemicals Business were ¥15,697 million (down 12.1% year on year), and segment operating income was ¥1,650 million (down 27.7% year on year). Electrolytic Products saw increased sales due to price corrections in response to rising costs, and Industrial Gas saw increased sales due to higher sales volume, while Acrylic Monomer saw a decline in sales due to the discontinuation of certain products and lower selling prices linked to falling raw material prices. In addition, increased repair costs also weighed on operating income. Supply constraints have also arisen for some raw materials due to soaring crude oil and naphtha market prices amid heightened tensions in the Middle East.
Key Products
Growth Drivers
- Improved profitability in Electrolytic Products through price corrections (passing on cost increases to prices)
- Increased sales effect from higher sales volume of Industrial Gas
- Maintenance and utilization of overseas manufacturing and sales structure including the Singapore base
- Strengthening of the production base through the renewal plan for the soda electrolysis plant under the new medium-term management plan "Connect and Create 2028"
- Continued stable supply of products through alternative procurement, inventory management, and optimized production planning
Risks
- Persistent decline in sales volume and revenue due to the discontinuation of certain Acrylic Monomer products
- Risk of declining selling prices linked to fluctuations in raw material prices (Acrylic Monomer)
- Risk of raw material procurement constraints and cost increases due to soaring crude oil and naphtha market prices amid heightened tensions in the Middle East
- Risk of pressure on operating income due to increased manufacturing costs such as repair expenses
- Risk of deteriorating profitability and impairment of Acrylic-related manufacturing facilities in Singapore and Kawasaki
- Impact on raw material procurement and exports from geopolitical risks and US tariff policy
- Risk of trouble or operational suspension at Industrial Gas manufacturing affiliated companies
Last updated: March 25, 2026