NIPPON FILCON CO., LTD.
5942・Standard Market・Metal Products
Industrial Functional Filter & Conveyor Business
The company's largest segment, manufacturing and selling papermaking forming wires and industrial wire mesh
| Period | Current | Previous | Change |
|---|---|---|---|
| External customer sales (first half) | ¥10,187 million | ¥9,727 million | ↑ |
| Segment operating income (first half) | ¥606 million | ¥434 million | ↑ |
| External customer sales (full year, prior year actual) | ¥20,030 million | — | — |
| Segment operating income (full year, prior year actual) | ¥786 million | — | — |
Business Details
This segment comprises the papermaking products field, which manufactures and sells forming wire used in paper and pulp production, and the Industrial Conveyor Belts & Filters field, which manufactures and sells industrial wire mesh used for sifting, filtration, and conveying. The segment has a broad manufacturing and sales network both domestically and overseas, with group companies such as the Thai subsidiary (FILCON FABRICS & TECHNOLOGY CO., LTD.) and Kansai Kanaami Co., Ltd. handling manufacturing. In the first half of FY2026 (ending November 2026), external customer sales were ¥10,187 million, accounting for approximately 71% of consolidated sales, making this the core segment.
Recent Overview
First-half sales up 7.0% and operating income up 39.8%, marking substantial improvement
In the first half of FY2026 (ending November 2026) (December 2025 to May 2026), external customer sales were ¥10,187 million (up 4.7% year on year), and segment operating income was ¥606 million (up 39.8% year on year). In the papermaking products field, domestic sales declined while overseas sales (for paperboard, sanitary paper, and nonwoven fabric applications) remained solid. In the Industrial Conveyor Belts & Filters field, sales to the food industry in the Chinese market increased. In addition, a decrease in retirement benefit expenses following a change to the retirement benefit system at a domestic consolidated subsidiary also contributed to the improvement in operating income.
Key Products
Growth Drivers
- Increased sales of conveyor belts to the food industry, mainly in the Chinese market
- Solid demand for paperboard, sanitary paper, and nonwoven fabric applications in the overseas papermaking products field
- Improved profitability due to a decrease in retirement benefit expenses following a change to the retirement benefit system at a domestic consolidated subsidiary
- Cost reduction and profitability recovery through the transfer of production from the Shizuoka plant to the Thai subsidiary
- Streamlining of European operations through reorganization of European sales bases (liquidation of the French subsidiary and establishment of a new German company)
Risks
- Structural decline in domestic paper demand (paperless trends) and accelerating reduction in paper manufacturers' production capacity
- Prolonged demand slowdown due to economic downturn in the European market
- Pressure on operating margin from rising labor and manufacturing costs
- Soaring costs of imported materials and equipment due to yen depreciation
- Increased capital expenditure and depreciation burden associated with the rebuilding of the Osaka plant (scheduled for completion by the end of fiscal 2028)
- Impact on overseas demand from geopolitical risks such as US trade policy and Middle East tensions
Last updated: February 25, 2026