Nippon Light Metal Holdings Company, Ltd.
5703・Prime Market・Nonferrous Metals
Alumina, Chemical Products & Ingots
Core aluminum materials segment centered on alumina, chemical products, and secondary alloys
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment sales (including internal sales) | ¥269,486 million | ¥246,806 million | ↑ |
| Sales to external customers | ¥183,583 million | ¥165,499 million | ↑ |
| Segment operating profit | ¥9,939 million | ¥11,542 million | ↓ |
| Segment assets | ¥207,705 million | ¥195,214 million | ↑ |
| Depreciation and amortization | ¥5,973 million | ¥5,731 million | ↑ |
| Increase in property, plant and equipment and intangible assets | ¥7,142 million | ¥6,826 million | ↑ |
| Investment in equity-method affiliates | ¥6,952 million | ¥4,993 million | ↑ |
Business Details
Comprises the Chemical Products Business Group (aluminum hydroxide, alumina, various chemical products, carbon products) and the Metal Business Group (secondary alloys for automotive applications). Serves the automotive, electronics, and chemical industries in Japan and overseas as its main customer base, with Nippon Light Metal Company, Ltd. as the core entity supported by manufacturing and sales subsidiaries in Japan and abroad. In FY2026 (ending March 2026), sales to external customers were ¥183,583 million (up 10.9% year on year), making it the largest segment, accounting for approximately 31% of total group sales. The amount including inter-segment internal sales was ¥269,486 million.
Recent Overview
Sales rose significantly by 10.9% year on year, but operating profit fell 13.9% due to fluctuations in the ingot market
In FY2026 (ending March 2026), the Chemical Products division (strong demand for heat-dissipating flame retardant filler applications and price revision effects) and the Carbon Products division (increased sales to the steel industry and shift to high-profitability projects) achieved significant increases in sales and profit. While the Metal Business Group saw a substantial increase in sales due to the full-scale operation of the Indian subsidiary and favorable conditions in the U.S., the negative impact from fluctuations in the aluminum ingot market was significant, and segment operating profit remained at ¥9,939 million, down 13.9% year on year. In the first half of 2025, the company also made an equity investment in a recycled aluminum business company in the Republic of India.
Key Products
Growth Drivers
- Continued demand for aluminum hydroxide and alumina for heat-dissipating flame retardant fillers (electronic materials and EV-related)
- Continued favorable sales conditions in the U.S. secondary alloy business
- Contribution to increased sales from full-scale operation of the Indian secondary alloy plant (began operations in 2024)
- Building a global circular supply chain through equity participation in an Indian recycled aluminum business company
- Penetration of price revisions and increased sales effect in the Chemical Products division
- Improved sales mix toward high-profitability projects in the Carbon Products division
Risks
- Cost increase risk from fluctuations in the aluminum ingot market (main cause of profitability pressure)
- Stagnant secondary alloy demand due to continued sluggish domestic automobile production
- Prolonged sluggish local sales due to the slowdown of the Chinese economy
- Sluggish sales of some chemical products, such as inorganic chlorides
- Impact on overseas operations (U.S., Thailand, India) from U.S. trade policy (tariff) trends
- Profitability pressure from intense competitive conditions in the Thai market
Last updated: June 22, 2026