KOATSU GAS KOGYO CO., LTD.
4097・Prime Market・Chemicals
Gas Business
The core segment of Koatsu Gas Kogyo. An industrial gas business boasting a high domestic market share in dissolved acetylene.
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales | ¥73,470 million | ¥73,529 million | ↓ |
| Operating income (segment income) | ¥6,949 million | ¥6,594 million | ↑ |
| Segment assets | ¥66,674 million | ¥64,343 million | ↑ |
| Depreciation and amortization | ¥2,084 million | ¥1,814 million | ↑ |
| Capital expenditures (increase in tangible and intangible fixed assets) | ¥2,880 million | ¥2,586 million | ↑ |
Business Details
This segment manufactures, procures, and sells dissolved acetylene mainly for construction, bridges, shipbuilding, and machinery applications, along with various high-pressure gases such as oxygen, nitrogen, argon, and carbon dioxide, petroleum-based gases such as LP gas, and high-pressure gas-related materials and equipment. Dissolved acetylene holds a high domestic market share and is positioned as the mainstay field of this business. The segment operates numerous consolidated subsidiaries responsible for manufacturing, sales, and transportation, building a region-focused sales structure. It is the core segment, accounting for approximately 74% of consolidated net sales.
Recent Overview
Net sales were roughly flat, but operating income rose 5.3% year on year as profitability improved.
In FY2026 (ending March 2026), Gas Business net sales were ¥73,470 million (down 0.0% year on year, a decline of less than the displayed unit), remaining almost flat. Meanwhile, operating income improved to ¥6,949 million (up 5.3% year on year), with profitability improving. Dissolved acetylene, welding and cutting equipment, and containers fell below the prior year due to sluggish demand, but increased sales of argon, hydrogen, and specialty gases, along with profitability improvement from carbon dioxide price revisions, boosted profit. Recovery in hydrogen demand in the semiconductor-related field also made a partial positive contribution.
Key Products
Growth Drivers
- Acquisition of new customers for argon, hydrogen, and specialty gases and demand recovery in the semiconductor-related field
- Profitability improvement from carbon dioxide price revisions
- Solid demand for containers for fire extinguishing equipment
- Expanded sales and supply network development for liquefied ammonia, hydrogen gas, new refrigerant gases, and agricultural carbon dioxide (growth fields based on the medium-term management plan)
- Development of high value-added products such as carbon nanotubes and flame retardants utilizing acetylene, and deployment of new technologies such as atmospheric-pressure smart carburizing
- Strengthened acquisition of new and spot deals through region-focused sales activities
Risks
- Risk of continued sluggish demand for steel, automotive, construction, and shipbuilding applications (slow recovery in demand from major destinations)
- Decline in demand for dissolved acetylene (decreased automobile production, fuel conversion in shipbuilding, construction delays)
- Risk of cost increases due to elevated raw material prices
- Impact on logistics operations from rising logistics costs and delivery staff shortages
- Concerns over economic downside from geopolitical risks and the effects of US trade policy
- Risk of declining demand for industrial gas containers and long tube containers for hydrogen storage
Last updated: June 23, 2026