Maruichi Steel Tube Ltd.

Business Details

Comprised primarily of Maruichi Kokan (parent company), together with domestic consolidated subsidiaries such as Maruichi Stainless Tube Co., Ltd. The segment manufactures and sells a diverse range of products, including welded steel pipe for structural, construction, and piping applications, stainless steel pipe, BA precision tube, shaped pipe, coated coil, and lighting poles, serving primarily the construction, automotive, agriculture, and semiconductor-related industries. In FY2026 (ending March 2026), sales declined due to lower volume and falling unit prices, but increased profit at the parent company covered the profit decline at Maruichi Stainless Tube Co., Ltd., resulting in an increase in segment profit.

Recent Overview

Sales declined but profit increased. The profit decline in the stainless business was offset by an increase in profit at the parent company.

Japan segment sales in FY2026 (ending March 2026) declined to ¥144,139 million (down 7.1% year on year). Parent-company sales declined due to a combination of a 1.6% decline in sales volume and falling unit prices, while Maruichi Stainless Tube Co., Ltd. also saw declining sales due to reduced exports stemming from tariff issues, inventory adjustments for semiconductor applications, and lower volumes of automotive BA tube. Meanwhile, segment profit increased to ¥21,851 million (up 11.7% year on year). The No. 3 line (6-inch mill) at the Nagoya plant began operation from the end of September 2025. Construction of the plant at the Shimonoseki Stainless Park is also proceeding smoothly.

Key Products

Growth Drivers

• Investment to expand the stainless steel pipe business: Construction is underway at Maruichi Stainless Park in Shimonoseki on a stainless welded steel pipe plant and a large press plant (construction started in July and September 2025), with increased production capacity expected upon completion
• Operation of next-generation pipe-making machinery: A next-generation pipe-making machine that can also be operated by women was jointly developed with a pipe-making machine manufacturer; the Nagoya plant's No. 3 line (6-inch mill) began operation from the end of September 2025, contributing to improved production efficiency
• Recovery in semiconductor-related orders: Orders for semiconductor-related projects have recently begun to trend upward, and profit improvement is expected from expanded sales of high-margin products at Maruichi Stainless Tube Co., Ltd.
• Renewal of core systems: A renewal of the parent company's core systems is planned to improve productivity through greater operational efficiency in sales, production, and administrative departments
• Advancing cost pass-through: Actively working to pass on rising costs, such as manufacturing expenses, to sales prices with the aim of securing spreads

Risks

• Continued sluggish domestic demand for steel products: Shipment volumes remain weak in areas related to small- and medium-sized construction, agriculture, and construction/agricultural machinery, and securing sales volume is expected to remain difficult
• Downward pressure on sales prices: Amid weak demand, other manufacturers are cutting prices, making it difficult to pass on cost increases (including requests for higher coil purchase prices)
• Performance risk at Maruichi Stainless Tube Co., Ltd.: Risk of continued volume declines in BA tube due to delayed recovery in the semiconductor market, and continued reduction in stainless pipe exports due to U.S. tariff issues
• Increased fixed cost burden: Risk of increased fixed cost burden per ton of manufacturing cost due to declining sales volume
• Risks associated with large-scale capital investment: Large-scale investment to expand the stainless steel pipe business is underway, and there is a risk regarding investment recovery if demand recovery is delayed