Maruichi Steel Tube Ltd.
5463・Prime Market・Iron & Steel
Business
Marui Kokan was founded in 1947 as a specialized steel pipe manufacturer, and consists of 28 companies in total, including the Company itself, 18 consolidated subsidiaries, and 3 equity-method affiliates. Domestically, it manufactures welded steel pipe, stainless steel pipe, square steel pipe, and shaped pipe, supplying the construction, automotive, agriculture, and energy sectors. In North America, it operates six sites in total—four in the United States, one in Mexico, and one stainless pipe facility—while in Asia it manufactures and sells steel pipe and surface-treated steel sheet in Vietnam, India, and the Philippines. Consolidated net sales for FY2026 (ending March 2026) were ¥243,764 million, with Japan accounting for 59%, North America 22%, and Asia 18% of the sales composition.
Business Model
The largest driver of earnings lies in managing the spread (price differential) between steel pipe selling prices and raw material coil purchase prices. The company procures raw material coils and manufactures steel pipes through welding, cold rolling, surface treatment, and other processing at plants in each region, selling them to demand sectors such as construction, automotive, semiconductors, and energy. Domestically, it operates a dual-channel structure combining direct sales and sales via Maruichi Kosan, while overseas, local subsidiaries sell directly. Securing the spread, maintaining appropriate inventory levels, and passing on costs are the key factors determining profit levels.
Company Strengths
In addition to its main domestic plants (Sakai, Nagoya, Tokyo, Takuma, Shimonoseki, etc.), the company holds more than 10 overseas sites in total, including 4 in the United States, 1 in Mexico, 2 in Vietnam, and sites in India and the Philippines. This multi-polar structure captures demand for automobiles, construction, semiconductors, and other applications across each region while diversifying the risk of demand fluctuations in any single region.
At the end of FY2026 (ending March 2026), outstanding borrowings were at an extremely low level, with ¥3,599 million in short-term borrowings and ¥787 million in long-term borrowings, while cash and cash equivalents stood at ¥88,682 million. Backed by a financial base of ¥361,936 million in net assets and ¥422,374 million in total assets, the company has the financial capacity to execute its 7th medium-term plan's ¥130 billion three-year investment plan primarily with its own funds.
In 2020, the company made Kobelco Steel Tube (now Maruichi Stainless Tube) a subsidiary, internalizing its stainless steel business. It is currently constructing a stainless steel welded pipe plant and a large press plant at the Maruichi Stainless Park in Shimonoseki (construction started in July and September 2025, respectively). In addition, a next-generation pipe-forming machine (the 6-inch mill at the Nagoya plant) jointly developed with a pipe-forming machine manufacturer began operating from the end of September 2025, achieving improved production efficiency through labor savings, automation, and AI utilization.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥273,416 million in FY2023 (ended March 2023) and has declined for three consecutive periods, reaching ¥243,764 million in FY2026 (ending March 2026), down 6.8% year on year. The Japan segment saw lower sales due to sluggish demand and falling unit prices, while Asia was affected by a sharp drop in exports of surface-treated steel sheet stemming from anti-dumping issues at SUNSCO. Meanwhile, North America swung to a large profit due to the stabilization of U.S. HRC prices at high levels (an external factor) and the disappearance of the prior period's inventory valuation losses, driving consolidated operating profit to ¥32,043 million (up 39.8% year on year) and improving the operating profit margin to 13.1% (from 8.8% in the previous period). However, because extraordinary income (gain on sale of investment securities) decreased by approximately ¥12,000 million year on year, net income attributable to owners of the parent came to only ¥26,676 million, down 1.3% year on year. For FY2027 (ending March 2027), the company forecasts revenue of ¥274,500 million (up 12.6% year on year) and operating profit of ¥36,900 million (up 15.2%), but expects net income of ¥25,700 million (down 3.7%) due to a further reduction in extraordinary income.
Growth Strategy
Steadily executing key initiatives in the final year of the 7th Medium-Term Management Plan through stainless steel business expansion and investment in overseas growth markets
At Maruichi Stainless Park in Shimonoseki, construction is underway on a stainless welded steel pipe plant by Maruichi Kokan (construction started July 2025) and a large-scale press plant by Maruichi Stainless Tube Co., Ltd. (construction started September 2025). Upon completion, the company plans to enhance production capacity for high-margin stainless products and capture recovering demand from the semiconductor and automotive sectors.
A next-generation pipe-making machine that can also be operated by female workers was jointly developed with a pipe-making machine manufacturer, and began operation as the No. 3 unit (6-inch mill) at the Nagoya Plant from late September 2025. Improvements to the workplace environment (such as installation of air conditioning) are also being promoted in parallel, contributing to higher productivity and improved recruitment.
KUMA in India constructed a new plant in Gujarat and introduced 2-inch mill production equipment, which began operation from April 2025. This addresses increased demand for large-diameter exhaust pipes for commercial vehicles driven by the rapid recovery of the four-wheeler market and stricter environmental regulations; sales volume increased 14.5% year on year. Price declines due to intensifying competition remain a challenge.
MPST in the Philippines added a 2-inch mill, which began operation from January 2026, and shipments from the newly established second plant also contributed to a net increase. Against the backdrop of expanding local production by two-wheeler manufacturers, sales volume continued to grow strongly, up 19.8% year on year. Productivity improvements were also achieved through the introduction of automatic high-speed cutting machines.
Maruichimex in Mexico constructed a new second plant in Monterrey and is strengthening its sales structure to develop demand for steel pipe in fields other than automotive. The tariff impact on Japanese automakers is considered minor, and an increase in sales volume is expected. The company is proceeding to expedite the plant's launch.
A renewal of the core business system is planned on a stand-alone basis in Japan. This aims to improve productivity through greater operational efficiency in sales, production, and indirect departments, thereby strengthening cost competitiveness.
Last updated: July 19, 2026