KIMURA CHEMICAL PLANTS CO., LTD.
6378・Standard Market・Machinery
Business
Kimura Chemical Plants Co., Ltd. was founded in 1924 and marked its 100th anniversary in 2024. It is a comprehensive plant engineering company operating in three business segments: the Engineering Business (design, manufacture, and installation of evaporators, distillation equipment, and other equipment), the Chemical Machinery Business (on-site plant construction and maintenance work), and the Energy & Environment Business (nuclear fuel transport containers, radioactive waste treatment equipment, etc.). Its major customers include large manufacturing and energy companies such as Sumitomo Metal Mining and Fuji Electric. The group, including its consolidated subsidiary Foreco Co., Ltd., recorded net sales of ¥27,972 million in FY2026 (ending March 2026).
Business Model
The company captures high-value-added projects through the EMPC (Engineering, Procurement, Construction) method, under which design, manufacturing, procurement, on-site construction, and trial operation are contracted as a single package. In the Chemical Machinery Business, stable earnings are secured through continued orders for periodic repairs and Maintenance Work. The Energy & Environment Business is centered on long-term nuclear-related construction projects (accounted for under the percentage-of-completion method), and the period-end order backlog of ¥23,861 million enhances the visibility of future revenue.
Company Strengths
Founded in 1924, the company began designing and manufacturing nuclear energy-related equipment in 1956. It has a long track record of deliveries in highly specialized fields such as nuclear fuel transport containers, radioactive waste treatment equipment, and shielding facilities, accumulating technology and know-how that competitors cannot easily replicate in a short period. The segment profit margin of the Energy & Environment Business has reached 19.2%.
The EMPC method—undertaking Engineering, Manufacturing, Procurement, and Construction as a single package—is the company's proprietary trademarked service. By providing integrated services from design through commissioning, it consolidates the point of contact for customers, achieving higher added value and profit margins than simple equipment sales.
At the end of FY2026 (ending March 2026), the order backlog totaled ¥23,861 million, comprising ¥10,656 million for the Engineering Business, ¥9,493 million for the Energy & Environment Business, and ¥3,711 million for the Chemical Machinery Business. This backlog is equivalent to approximately 85% of the same period's net sales of ¥27,972 million, forming a structure that enables stable accumulation of revenue in future periods.
ENVALITH's Perspective
Performance Trend
Revenue temporarily declined from ¥24,589 million in FY2022 to ¥21,553 million in FY2023, before achieving four consecutive years of revenue growth: ¥24,670 million in FY2024, ¥26,431 million in FY2025, and ¥27,972 million in FY2026 (ending March 2026). Operating profit also remained at its highest level in the past five fiscal years at ¥3,024 million in FY2026, but the increase was limited to just ¥11 million due to higher SG&A expenses (director stock benefit provision +¥228 million). Net income attributable to owners of parent was ¥2,259 million, down ¥50 million (-2.2%) year on year. Meanwhile, leading indicators deteriorated, with orders received of ¥24,405 million (down 12.9% year on year) and order backlog of ¥23,861 million (down 13.0% year on year), and the company itself is forecasting a substantial decline in both revenue and profit for FY2027 (ending March 2027), projecting revenue of ¥24,800 million and operating profit of ¥2,620 million. The decline in orders is attributable to external factors, including continued caution toward domestic capital expenditure stemming from the impact of US trade policy.
Growth Strategy
Under the 14th Medium-Term Management Plan '3・3・4,' the company aims to achieve net sales of ¥30.0 billion, operating profit of ¥3.0 billion, and a workforce of 400 or more employees in FY2027 (ending March 2027)
Promoting order expansion through the EMPC method, which handles design, manufacturing, procurement, construction, and trial operation on a lump-sum basis. Orders received in the Engineering Business for FY2026 (ending March 2026) fell to ¥7,136 million, down 16.1% year on year, making recovery of orders through subsidy-linked sales activities (adoption of 5 advanced energy-saving equipment units) an urgent priority.
Deploying sales activities centered on distillation and evaporation equipment that significantly reduce CO₂ emissions, in conjunction with subsidy programs under the Environmental Co-creation Initiative. While tightening decarbonization regulations serve as an external tailwind, customers' cautious stance on capital investment remains a constraint on short-term order recovery.
Promoting continued orders for projects related to the decommissioning and decontamination of Fukushima Daiichi Nuclear Power Station and for the Rokkasho MOX Fuel Fabrication Plant. Orders received in the Energy & Environment Business for FY2026 (ending March 2026) remained nearly flat at ¥6,445 million (down 0.1% year on year), with an order backlog of ¥9,493 million supporting sales in the next fiscal year.
Target 4 of the Medium-Term Management Plan calls for building a workforce of 400 or more employees. As shown by the increase in personnel expenses and statutory welfare costs (salaries of ¥797 million, statutory welfare expenses of ¥184 million), the company continues to invest in human resources, but securing capable talent amid a labor shortage environment remains a challenge.
Last updated: July 19, 2026