NIHON SEIKAN K..K.
5905・Standard Market・Metal Products
Metal Can Manufacturing and Sales Business
Core group business manufacturing and selling 18L Cans and Art Cans for the domestic market
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment sales | ¥11,278 million | ¥11,095 million | ↑ |
| Segment operating income (loss) | -¥391 million | -¥624 million | ↑ |
| Segment assets | ¥8,715 million | ¥8,892 million | ↓ |
| Depreciation and amortization | ¥340 million | ¥370 million | ↓ |
| Capital expenditures (increase in tangible and intangible fixed assets) | ¥341 million | ¥437 million | ↓ |
| Impairment loss | ¥15 million | ¥607 million | ↓ |
Business Details
Comprised of the Company (Nippon Seikan Co., Ltd.) and its subsidiary, Shinsei Seikan Co., Ltd. The Company, based in the Kanto region, and Shinsei Seikan, based in the Kansai region, cover the entire domestic market including OEM production. Main products are 18L Cans for paints, chemicals, and oils/fats (77.8% of sales) and Art Cans (18.2% of sales). Major customers are Seibu Yoki Co., Ltd. (¥1,930 million in sales) and Meiji Co., Ltd. (¥835 million in sales). Operations are domestic only, with no overseas sales or overseas fixed assets.
Recent Overview
Operating loss narrowed to ¥391 million, but a ¥60 million factory closure loss was recorded and profitability has not yet been achieved
In FY2026 (ending March 2026), sales in the Metal Can Manufacturing and Sales Business were ¥11,278 million (up 1.6% year on year), and operating loss was ¥391 million (an improvement from a loss of ¥624 million in the prior period). Sales increased on progress in the start-up of new Art Can manufacturing equipment, but results fell short of the initial plan due to delays in realizing cost reduction effects, delays in stabilizing equipment operation, and delays in obtaining customer approvals for new products. A factory closure loss of ¥60 million (related to the closure of the Chiba plant) was recorded as an extraordinary loss. Impairment loss decreased significantly to ¥15 million from ¥607 million in the prior period. Sales to major customer Seibu Yoki Co., Ltd. were ¥1,930 million, and sales to Meiji Co., Ltd. were ¥835 million.
Key Products
Growth Drivers
- Full-scale recovery of production capacity and sales expansion through stabilization of new Art Can manufacturing equipment operation (achieved an 8.1% year-on-year increase)
- Phased realization of fixed cost reduction effects through production consolidation, including the closure of the Chiba plant (from FY2027 (ending March 2027) onward)
- Improved profitability through Product-Mix improvement with a focus on profitability
- Increased utilization of high-value-added product manufacturing lines and progress in obtaining new customer approvals
- Diversification of the sales base through the development of new business relationships
Risks
- Risk that stabilization of the new Art Can manufacturing equipment's operation continues to require time (delays persisted into FY2026 (ending March 2026))
- Risk that obtaining customer approvals for new products takes longer than expected
- Pressure on profitability from persistently high steel and energy prices and rising labor costs
- Long-term contraction of domestic metal can demand (due to population decline and companies relocating operations overseas)
- Risk of sales concentration among major customers (Seibu Yoki Co., Ltd. and Meiji Co., Ltd. together account for approximately 24% of sales)
- Risk that the realization of cost reduction effects falls short of the initial plan (the plan was not achieved in FY2026 (ending March 2026) either)
- Risk of delayed profitability recovery, with profitability not expected to be achieved even in FY2027 (ending March 2027)
- Risk of additional impairment losses (although the loss narrowed to ¥15 million in the current period, recurrence is possible depending on the profitability of the equipment)
Last updated: June 25, 2026