ENVALITH
森六株式会社 logo

MORIROKU COMPANY, LTD.

4249・Prime Market・Chemicals

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森六株式会社 logo
MORIROKU COMPANY, LTD.4249

Business

Moriroku Co., Ltd. is a long-established company founded in 1663, built on two core businesses: the Resin Processed Products Business, which manufactures and sells automotive resin parts, and the Chemical Business, which handles the sale, manufacture, and import/export of chemicals and synthetic resin products. In the Resin Processed Products Business, the company has built a global production and development structure across four regions—Japan, North America, China, and Asia—with its main customers being Honda Development & Manufacturing of America, LLC and Honda Motor Co., Ltd., which together account for approximately 55% of sales. The Chemical Business leverages over 360 years of chemical expertise accumulated since the company's founding and a global sales network to expand into diverse fields such as mobility, electrical/electronics, fine chemicals, and medical. The company comprises 26 consolidated subsidiaries and 6 affiliated companies, with consolidated sales for FY2026 (ending March 2026) at ¥133,871 million.

Business Model

In the Resin Processed Products Business, the company handles interior and exterior resin parts ordered by automakers on an integrated basis from development through mass production, generating revenue from manufacturing margins. In the Chemical Business, in addition to the import/export and sale of chemicals and synthetic resin products, the company also has "manufacturing" capabilities such as Shikoku Kako Co., Ltd.'s high-functionality multilayer films and Gokoh Kasei Kogyo Co., Ltd.'s chemical synthesis operations. The structure enables the two businesses to mutually share chemical knowledge, global sales networks, and manufacturing know-how, creating synergies.

Company Strengths

In the Resin Processed Products Business, the company has developed manufacturing and development sites in Japan (Kanto Plant, Suzuka Plant), North America (US, Canada), China (Guangzhou, Wuhan), and Asia (Thailand, the Philippines, Indonesia, India), building an integrated system from design through mass production. The site network, built over nearly 40 years since entering the US market in 1986, is a unique asset that competitors cannot easily replicate in a short period.

The company continuously advances its proprietary decoration and weight-reduction technologies, including the recent completion of new applications of hot stamping (foil pressing) methods to large exterior parts, research into the fusion of multi-layer decoration and lighting technologies, and basic research into the use of plant fibers. R&D expenses for FY2026 (ending March 2026) totaled ¥3,567 million (of which ¥3,406 million was for the Resin Processed Products Business), and the company is also pursuing new customer development through presentation activities to domestic and overseas customers.

The Chemical Business is built on chemical knowledge accumulated over more than 360 years since the company's founding, and it operates sales sites across Asia, Europe, North America, and the Middle East. It serves diverse fields including mobility, electrical and electronics, fine chemicals, medical, and food, and continues to expand its footprint through initiatives such as an equity investment in a South Korean company to enter the battery materials field and the establishment of a representative office in Germany. This sales network is also utilized for supplying raw materials and sharing know-how with the Resin Processed Products Business.

ENVALITH's Perspective

Even in FY2026 (ending March 2026), the sales dependency on the two Honda Group companies combined remained high at approximately 54.8%. This structure is directly exposed to external factors such as the sluggish sales of Japanese automakers in China and Asia, and as a result, sales for FY2026 (ending March 2026) came in at only ¥133,871 million, down 8.4% year on year. Unless further diversification of major customers progresses even after the acquisition of the Resonac business, similar risks will continue.

In FY2026 (ending March 2026), while sales declined by 8.4%, operating profit increased to ¥4,638 million (up 12.2% year on year). This was supported by progress in negotiations to optimize sales prices, a decrease in depreciation expenses following the impairment recorded in China in the previous period, and the elimination of losses associated with the sale of the Mexican subsidiary (MTDM). On the other hand, the sluggish sales of Japanese automakers in China and Asia due to the rise of Chinese manufacturers is a structural external factor, and the company has explicitly stated that difficult conditions in China are expected to continue even in its forecast for FY2027 (ending March 2027).

Effective April 1, 2026, the company acquired three mobility business companies from Resonac at an acquisition cost of ¥17,200 million (not yet finalized at this time), executing a ¥15,000 million syndicated loan (repayment due March 31, 2033). While sales for FY2027 (ending March 2027) are forecast to expand significantly to ¥194,400 million (up 45.2% year on year), the company will need to address the increase in interest-bearing debt and compliance with financial covenants (maintenance of net assets, operating income/loss, and an interest-bearing debt ratio within 7 times). The amount of goodwill and the assets and liabilities to be assumed remain undetermined at this time, and attention should also be paid to the potential emergence of integration costs.

Growth Strategy

Rescale of scale through the acquisition of the Resonac business, combined with increased production in North America and India and development of new Chemical Business domains, to rebuild the earnings base

As of April 1, 2026, Moriroku ReNova Co., Ltd., Moriroku Mobility Products Co., Ltd., and Moriroku Mobility Products (Thailand) Co., Ltd. were consolidated as subsidiaries. The acquisition brought exterior foam molding and modularization technologies, which will be integrated with the company's existing decoration, electrical, and weight-reduction technologies to create high-value-added products and solutions. This is a key factor behind the forecast net sales of ¥194,400 million for FY2027 (ending March 2027).

Increased production in North America and India is expected in FY2027 (ending March 2027), driving expansion of sales in existing businesses. Although temporary production cuts occurred in North America during FY2026 (ending March 2026) due to semiconductor supply shortages, recovery production proceeded smoothly and the impact was limited. Continued negotiations to optimize selling prices, mainly in Japan and North America, are contributing to improved profitability.

The company is advancing the establishment of a representative office in Germany and expanding business in the ASEAN region. It is also working to create new businesses in the Battery Materials Related field through investment in a Korean company. In the domestic mobility field, sales of resin parts for motorcycles and buggies as well as mold transactions have increased, and efforts to strengthen sales of high-value-added compound materials continue.

In April 2025, through an absorption-type company split, the businesses of Moriroku Technology Co., Ltd. and Moriroku Chemicals Co., Ltd. were transferred to the company. The review of the group management structure aims to strengthen collaboration between businesses and generate synergies. Under the 14th Medium-Term Management Plan (with its first year being FY2026, ending March 2026), the company is pursuing profit growth in its core businesses while advancing development toward future commercialization of products.

Last updated: July 19, 2026