Nippon Chemical Industrial Co.,Ltd.
4092・Prime Market・Chemicals
Business
Nippon Chemical Industrial, founded in 1893, is a long-established chemical manufacturer whose core operations comprise the Chemical Products Business (Chromium Products, Silica Products, Phosphorus Products) and the Functional Products Business (Electronic Ceramic Materials, Battery Materials, High-Purity Electronic Materials, Phosphine Derivatives, etc.). In the Chemical Products Business, the company is the sole domestic manufacturer of chromium compounds, supplying the majority of domestic demand while also exporting to Southeast Asia. In the Functional Products Business, it supplies barium titanate for multilayer ceramic capacitors and high-purity phosphine gas for semiconductors, counting major electronic component manufacturers such as TDK among its key customers. The real estate leasing business also serves as a stable source of revenue, and the company has built a global framework with overseas locations in the US, China, Thailand, and Taiwan.
Business Model
The Company is based on manufacturing at its own plants. In the Chemical Products Business, it secures stable earnings by leveraging its position as the only domestic manufacturer of chromium compounds. In the Functional Products Business, it supplies high-value-added products such as Electronic Ceramic Materials and High-Purity Electronic Materials to electronic components and semiconductor manufacturers, capturing demand from growth markets. The Leasing Business generates high-margin, stable cash flow through long-term leases to hospitals, retailers, and others, forming a structure that complements the earnings base of the group as a whole.
Company Strengths
As the only domestic manufacturer of chromium compounds, the company covers the majority of domestic demand while also exporting to many countries, including those in Southeast Asia. In 2012, it acquired Nippon Denko's chromium salt business, further strengthening its competitive advantage in the domestic market. Possessing world-class technology and facilities, the company continues to provide a stable supply for a wide range of applications, including plating, refractory bricks, and pigments.
Large-scale capital investment at the Tokuyama Plant (Shunan-shi, Yamaguchi Prefecture) was completed in FY2026 (ending March 2026), establishing a stable supply system based on a two-site structure together with the Fukushima Daiichi Plant. In FY2026 (ending March 2026), sales in the Functional Products Business were ¥21,010 million (up 11.3% year on year), driven by a significant increase in Electronic Ceramic Materials for automotive and telecommunications applications. The enhanced production capacity has established a foundation for responding to future demand growth.
The real estate leasing business in Nishiyodogawa-ku, Osaka City, and Koriyama-shi, Fukushima Prefecture, achieved sales of ¥940 million and segment profit of ¥559 million (operating margin of 59.5%) in FY2026 (ending March 2026). In addition to stable rental income from long-term tenants such as hospitals and retailers, the EBITDA level, factoring in depreciation expenses of ¥246 million, is high, continuing to contribute to the group's cash flow generation.
ENVALITH's Perspective
Performance Trend
Revenue maintained a gradual growth trend, rising from ¥37,275 million in FY2022 (ended March 2022) to ¥40,182 million in FY2026 (ending March 2026). Operating profit fell to ¥1,292 million in FY2023 (ended March 2023), recovered to ¥3,342 million in FY2025 (ended March 2025), but declined again to ¥2,415 million in FY2026 (ending March 2026). Net profit attributable to owners of the parent came to ¥2,894 million, securing an increase from the prior period, which appears to have been supported by non-operating income and extraordinary gains/losses. Sluggish profitability in the Functional Products Business and the burden of capital expenditures have weighed on operating profit, and external factors such as fluctuations in demand in the electronic components market, raw material prices, and exchange rates are considered the main drivers of performance volatility.
Growth Strategy
Aiming for operating income of ¥6,000 million by 2030 through three pillars: strategic investment in electronic materials, promotion of globalization, and creation of new value
Expanding barium titanate production capacity to capture demand for MLCC dielectrics in 5G, IoT, and automotive applications. High-purity phosphine gas and high-purity red phosphorus target increased demand accompanying semiconductor market growth. Capital expenditure for the Functional Products Business in FY2026 (ending March 2026) continues at an aggressive ¥2,558 million.
Leveraging Taiwan Nippon Chemical Industrial Co., Ltd., established in June 2024, to expand sales in the Asian region for both the Chemical Products Business and Functional Products Business. Focus is on continuing Chromium Products exports to Southeast Asia and developing local customers for electronic materials.
Promoting expansion into new demand areas, including growing demand for Phosphine Derivatives for quantum dots and electronic material applications for Phosphorus Products. Aiming to improve profitability through development of high-value-added products by applying existing technologies.
Last updated: July 19, 2026