UBE Corporation
4208・Prime Market・Chemicals
Functional Products
Core specialty chemicals segment comprising Polyimide, Separation Membrane, Ceramics, and Separator businesses
| Period | Current | Previous | Change |
|---|---|---|---|
| Net Sales (External Customers) | ¥50,930 million | ¥50,250 million | ↑ |
| Net Sales (Segment Total) | ¥61,900 million | ¥66,157 million | ↓ |
| Operating Income | ¥9,758 million | ¥11,668 million | ↓ |
| Operating Margin (Segment Total Basis) | 15.8% | 17.6% | ↓ |
| Segment Assets | ¥102,829 million | ¥94,028 million | ↑ |
| Depreciation | ¥4,642 million | ¥4,095 million | ↑ |
| Increase in Property, Plant and Equipment and Intangible Assets | ¥11,647 million | ¥14,236 million | ↓ |
Business Details
This segment plays the central role in the UBE Group's specialty chemicals strategy. It comprises four businesses: Polyimide (film and varnish), Separation Membrane (nitrogen membrane and decarbonation membrane for biomethane), Ceramics (bearings and substrates for electric vehicles), and lithium-ion battery Separators. Its primary customer base consists of growth markets such as electric vehicles, smartphones, and renewable energy. From FY2026 (ending March 2026), reportable segments were reorganized into six categories, and this segment continues as an independent category separated from the former Functional Products segment.
Recent Overview
Separator sales grew, but Polyimide, Separation Membrane, and Ceramics were sluggish, leading to lower revenue and profit
In the Functional Products segment for FY2026 (ending March 2026), the Separator business achieved higher revenue due to increased demand for hybrid vehicles, while the segment overall experienced lower revenue and profit due to a combination of factors: the impact of declining smartphone sales on Polyimide varnish, continued customer inventory adjustments in Separation Membrane, and slowing growth in the electric vehicle market affecting Ceramics. Operating income decreased by approximately 16%, from ¥11,668 million to ¥9,758 million. Segment assets increased to ¥102,829 million due to continued capital expenditure. For FY2027 (ending March 2027), the Functional Products segment (under the new segment classification) is forecast to see a significant recovery, with net sales of ¥890 million and operating income of ¥150 million.
Key Products
Growth Drivers
- Continued expansion of demand for hybrid vehicles in the Separator business
- Medium- to long-term demand growth trend for decarbonation membranes for biomethane production (driven by renewable energy adoption)
- Expansion of production capacity through continued investment in manufacturing equipment for polyimide film, separation membranes, ceramics, DMC, EMC, and other products
- Positioning of specialty business expansion as the top priority under the new medium-term management plan 'UBE Vision 2030 Transformation -2nd Stage-', with continued focus on investment in Functional Products-related areas
- Integration of UBE America Inc. into the Functional Products segment from FY2027 (ending March 2027), strengthening the business foundation in the North American market
Risks
- Weak demand for polyimide varnish in the Chinese market and dependence on smartphone sales trends
- Continued risk of customer inventory adjustments and delays in plant construction plans in the Separation Membrane business
- Impact on the Ceramics business from slowing growth in the electric vehicle market
- Segment assets increased year-on-year to ¥102,829 million (capital expenditure of ¥11,647 million), presenting investment recovery risk
- The FY2027 (ending March 2027) forecast for the Functional Products segment (new classification) assumes a substantial recovery to net sales of ¥890 million and operating income of ¥150 million, presenting downside risk if this is not achieved
Last updated: June 18, 2026