SANYO CHEMICAL INDUSTRIES,LTD.
4471・Prime Market・Chemicals
Life & Health Industry Field
Segment shifting toward high-value-added products such as surfactants following completion of withdrawal from the superabsorbent polymer business
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (full year) | ¥17,561 million | ¥30,680 million | ↓ |
| Operating income (full year) | △¥167 million | ¥176 million | ↓ |
| Segment assets | ¥17,623 million | ¥19,362 million | ↓ |
| Depreciation and amortization | ¥1,404 million | ¥1,976 million | ↓ |
| Increase in property, plant and equipment and intangible assets (capital expenditure) | ¥882 million | ¥986 million | ↓ |
Business Details
This segment manufactures and sells surfactants for detergents and cleaning agents, surfactants for hair care products, and pharmaceutical raw materials. Domestic and overseas subsidiaries such as Sun Chemical Co., Ltd., San Nopco Ltd., and Sanyo Kasei (Thailand) Limited handle manufacturing and sales. As the main battlefield of structural reform under the New Medium-Term Management Plan 2025, the withdrawal from the superabsorbent polymer business has been completed, and the company is promoting a shift away from commodity products toward a business portfolio transformation focused on high-value-added products.
Recent Overview
Following completion of withdrawal from the superabsorbent polymer business, net sales declined 42.8% year on year, and the segment fell into an operating loss
In FY2026 (ending March 2026), net sales declined significantly to ¥17,561 million (down 42.8% year on year) due to withdrawal from the superabsorbent polymer business, and the segment fell into an operating loss of ¥167 million (compared to operating income of ¥176 million in the prior year). Business structural reform expenses of ¥230 million were recorded (including impairment losses on manufacturing equipment for Life & Health Industry-related products at the Nagoya Plant). Although the profitability improvement effect from the withdrawal has contributed to the improvement in the Group's overall operating income, the segment on its own has not yet achieved profitability.
Key Products
Growth Drivers
- Streamlining of unprofitable businesses and improvement of the earnings structure through completion of withdrawal from the superabsorbent polymer business (contributing to the improvement of the Group's overall operating income)
- Promotion of business portfolio transformation toward high-value-added products such as surfactants and pharmaceutical raw materials
- Continued promotion of cost reduction and working capital compression across the entire supply chain through the 'Manufacturing Grand Reform'
- Fixed cost reduction through consolidation and integration of production facilities under the 'Production Facility Reform'
Risks
- Risk of continued operating losses due to a significant contraction of the earnings base resulting from the reduced sales scale following withdrawal from the superabsorbent polymer business (down 42.8% year on year)
- Intensified price competition for surfactants and other products due to continued inflow of Chinese products into the Japanese and Asian markets
- Risk that the shift toward high-value-added products may be delayed beyond expectations (delayed progress in the final year of the New Medium-Term Management Plan 2025)
- Risk of increased costs due to a sharp rise in raw material prices (crude oil, naphtha, etc.) and higher ocean freight costs resulting from escalating tensions in the Middle East
- Risk of additional recording of business structural reform expenses (potential additional costs associated with equipment removal and soil remediation following withdrawal)
Last updated: June 16, 2026