TYK CORPORATION

Business Details

Tokyo Yogyo Co., Ltd. and its domestic subsidiaries manufacture and sell Refractory Bricks, Monolithic Refractories, New Ceramics (Fine Ceramics), Graphite Crucibles, and other products. The main customers are in the domestic steel industry, with refractories for steelmaking as the mainstay. The segment also extends into advanced material technologies such as fine ceramics and environment-creating technologies, and accounts for the majority of the group's total sales and profit as its core segment. In FY2026 (ending March 2026), solid demand for refractories led to a slight increase in sales, but segment profit declined significantly due to changes in the sales mix.

Recent Overview

Sales slightly increased, but profit fell sharply by 22.1% due to changes in sales mix

In the Japan segment for FY2026 (ending March 2026), sustained solid demand for refractories secured a slight increase in external customer sales to ¥21,726 million (up 0.8% year on year). On the other hand, segment profit fell sharply to ¥3,089 million (down 22.1% year on year) due to changes in the sales mix. While domestic crude steel production continued to decline, falling 3.2% year on year to 80.33 million tons, capital expenditure increased by 8.5% year on year to ¥1,264 million, continuing to strengthen the production base.

Key Products

Growth Drivers

• Continued solid demand for refractories in the domestic steel industry (demand levels maintained in FY2026 as well)
• Higher value-added sales mix (expansion into new ceramics and advanced materials fields)
• Productivity improvement and cost reduction through renewal investment in existing production facilities (capital expenditure of ¥1,264 million in FY2026, up 8.5% year on year)
• Focus on new materials and growth fields such as electronic components and environment-related ceramics
• Strengthening of the business foundation through expansion of segment assets (¥54,827 million, up 13.6% year on year)

Risks

• Downside risk to refractories demand from a decline in domestic crude steel production (down 3.2% year on year to 80.33 million tons in FY2026)
• Fluctuations in procurement costs for raw materials such as alumina and zirconia, and fuels such as heavy oil and butane gas
• Risk of deteriorating cost ratio due to changes in sales mix (the main cause of the 22.1% decline in segment profit in FY2026)
• Chronic shortage of personnel essential for maintaining and improving technical capabilities
• Deterioration in the steel supply-demand balance due to the slowdown in the Chinese economy, and a slowdown in domestic steel demand
• Increasing unpredictability of raw material price fluctuations due to U.S. trade policy and geopolitical risks (the situations in Ukraine and the Middle East)