NIPPON CHUTETSUKAN K.K.
5612・Standard Market・Iron & Steel
Ductile Iron Products
The Company's core segment centered on ductile iron pipes for water supply infrastructure
| Period | Current | Previous | Change |
|---|---|---|---|
| Net Sales | ¥13,955 million | ¥14,678 million | ↓ |
| Segment Profit | ¥87 million | ¥41 million | ↑ |
| Segment Assets | ¥18,734 million | ¥17,113 million | ↑ |
| Depreciation | ¥696 million | ¥431 million | ↑ |
| Increase in Tangible and Intangible Fixed Assets (Capital Expenditures) | ¥2,395 million | ¥2,490 million | ↓ |
Business Details
Centers on the manufacture and sale of Ductile Iron Pipes and Fittings for Water Supply, FEM Manhole Covers and Accessories for Water and Sewage, and also engages in water facility construction, engineering business, and pipeline deterioration diagnosis. Major customers are sales agents for water utilities (Taisan Kiko Co., Ltd. is the largest customer, accounting for 17.2% of net sales). This is the mainstay segment, accounting for approximately 88% of consolidated net sales, with the Kuki Plant serving as the manufacturing base. Part of the raw materials is procured from JFE Steel Corporation.
Recent Overview
Despite lower sales, 100% electric furnace conversion was completed and preparations for the joint venture progressed, with segment profit doubling year on year
In the Ductile Iron Products segment for FY2026 (ending March 2026), net sales decreased by ¥723 million, from ¥14,678 million to ¥13,955 million, due to continued sluggish order volumes from water utilities. On the other hand, segment profit improved from ¥41 million to ¥87 million, driven by expansion of high-value-added products and thorough cost reductions. Production at the electric furnace began operating in July 2025, achieving 100% electric furnace conversion from October. Preparations for the manufacturing joint venture with Kubota (scheduled to be established in December 2026) are also progressing steadily. Capital expenditures remained at a high level due to the new electric furnace and other investments, and depreciation expanded to ¥696 million, up ¥265 million year on year.
Key Products
Growth Drivers
- Potential expansion of pipeline renewal demand associated with the aging of water and sewage infrastructure (national and local governments are planning and implementing measures to promote seismic resilience of water infrastructure)
- OEM contract production (small-diameter ductile iron pipes) through the manufacturing joint venture with Kubota (planned for around December 2026) and resolution of excess production capacity in the industry
- Response to carbon neutrality through 100% electric furnace conversion and achievement of the target to reduce CO2 emissions by 50% in FY2027 (compared to FY2013)
- Expansion of the business domain across the entire pipeline renewal cycle through pipeline diagnosis and DX services (Fracta-AI, Daisaku-kun)
- Profitability improvement through continued promotion of selling price revisions and expanded sales of high-value-added products (Oseal, Rakuchaku)
Risks
- Order volumes from water utilities have remained sluggish nationwide, with the mainstay small-diameter sizes in particular falling below the previous fiscal year, and the outlook for demand recovery remains unclear
- Continued excess production capacity across the industry, intensifying price competition
- Continued cost pressure from rising prices of parts procurement, energy, logistics costs, and other items
- Increased financial burden and rising borrowings due to large-scale capital expenditures (¥3,282 million in acquisition of tangible fixed assets) associated with the new electric furnace and establishment of the manufacturing joint venture
- Difficulty in forecasting raw material and energy prices due to the situation in the Middle East, global inflation, trade policies of various countries, and exchange rate fluctuations
Last updated: June 25, 2026