FUJIKURA KASEI CO.,LTD.

Business Details

A segment that manufactures and sells coating materials for plastics ("Reclac", "Fujihard", etc.). The core business is automotive coatings, complemented by coatings for cosmetic containers and hobby coatings. In addition to domestic manufacturing, the company has built a global network with local subsidiaries in the U.S., U.K., Thailand, China, Malaysia, India, and other countries. In FY2026 (ending March 2026), this segment accounted for approximately 50% of consolidated net sales, making it the largest segment. Domestic automotive sales were weak due to declining production of applicable vehicle models, and the U.S. and Europe were also weak, but the ASEAN and India regions performed steadily.

Recent Overview

Weak in Japan and the U.S./Europe, but ASEAN and India remained steady. Capital expenditure increased significantly.

In the Coating segment for FY2026 (ending March 2026), net sales were ¥27,809 million (down 3.7% year on year) and operating profit was ¥640 million (down 6.3%), resulting in lower sales and profit. Domestic automotive sales were weak due to declining production of applicable vehicle models, and the U.S. and Europe were also weak, while the ASEAN and India regions performed steadily. Hobby coatings were weak, while coatings for cosmetic containers were steady. Impairment loss was ¥107 million, a significant decrease from ¥791 million in the prior period. The increase in tangible and intangible fixed assets surged to ¥3,927 million, approximately 4.3 times the prior year level, indicating that capital investment such as the construction of a new plant at the Sano Plant is now in full swing. Segment assets also increased 12.1% year on year to ¥33,796 million.

Key Products

Growth Drivers

• Expansion of sales in the India and ASEAN regions (steady performance confirmed also in FY2026 ending March 2026)
• Acquisition of new overseas projects for coatings for cosmetic containers and continued steady demand
• Improved production efficiency and enhanced competitiveness through construction of new plant at the Sano Plant (capital expenditure increased substantially in FY2026 ending March 2026)
• Expectation of demand recovery for domestic automotive applications as production of applicable vehicle models recovers
• Market expansion leveraging the global network (Japan, U.S., Europe, Asia)

Risks

• Decline in domestic demand due to suspension or reduction of automotive production (continued decline in production of applicable vehicle models)
• Prolonged sluggish sales in the China, Europe, and U.S. markets
• Cost pressure from supply concerns and rising raw material prices for petrochemical products due to worsening Middle East situation
• Foreign exchange risk (erosion of overseas sales due to yen appreciation)
• Impairment risk on fixed assets (an impairment loss of ¥107 million was recorded in the Coating segment also in FY2026 ending March 2026)
• Investment recovery risk associated with large-scale capital expenditure (construction of new plant)