KIMURA CHEMICAL PLANTS CO., LTD.
6378・Standard Market・Machinery
Engineering Business
EMPC-type plant engineering business providing integrated design, manufacturing, and installation of chemical machinery equipment
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales | ¥7,196 million | ¥7,285 million | ↓ |
| Segment profit (operating profit) | ¥260 million | ¥413 million | ↓ |
| Orders received | ¥7,136 million | ¥8,501 million | ↓ |
| Order backlog | ¥10,656 million | ¥10,717 million | ↓ |
| Segment profit margin (operating profit margin) | 3.6% | 5.7% | ↓ |
Business Details
Conducts design, manufacturing, processing, sales, and installation/ancillary construction of evaporators, distillation equipment, crystallization equipment, agitators, pressure vessel tanks, piping work, etc. Leverages the EMPC method—handling everything from design to procurement, manufacturing, on-site construction, and trial operation on an integrated basis—as a core strength, and is promoting order expansion for energy-saving distillation/evaporation equipment and equipment that contributes to CO2 emission reduction. The company is conducting active sales activities centered on five pieces of equipment adopted under the Advanced Equipment System of the Energy-Saving Investment Promotion Program operated by the Sustainable Open Innovation Initiative (SII).
Recent Overview
Orders received, net sales, and profit all declined year on year, with margin deteriorating from 5.7% to 3.6%
In FY2026 (ending March 2026), the Engineering Business recorded orders received of ¥7,136 million (down ¥1,365 million, or 16.1%, year on year), net sales of ¥7,196 million (down ¥88 million, or 1.2%, year on year), and segment profit of ¥260 million (down ¥152 million, or 36.9%, year on year). Amid continued cautious capital investment stance among customers, orders received decreased despite intensified proposal activities and information dissemination around the EMPC method and energy-saving equipment. Sales activities were conducted centered on the five pieces of equipment adopted under SII's Advanced Equipment System.
Key Products
Growth Drivers
- Expansion of orders for integrated contracting services under the EMPC method (high-value-added integrated orders covering everything from design through to trial operation)
- Addressing CO2 reduction needs centered on energy-saving distillation/evaporation equipment (capturing decarbonization-related investment)
- Promotion of subsidy-linked sales activities leveraging the five pieces of equipment adopted under the Advanced Equipment System of SII's "Reiwa 6 Supplementary Budget Energy-Saving Investment Promotion and Demand Structure Transformation Support Program"
- Development of new demand through participation in building the SAF (Sustainable Aviation Fuel) supply chain
- Contribution to future-period net sales from the accumulated order backlog of ¥10,656 million
Risks
- Customers' reconsideration or postponement of capital investment due to a slowdown in overseas economic conditions, geopolitical risk, and uncertainty over US trade policy (orders received fell sharply by 16.1% year on year in the current period)
- Uncertainty in estimating total construction costs (risk of fluctuation in costs incurred as construction progresses) and risk of recording provisions for construction losses
- Seasonality with sales concentrated at fiscal year-end (a large proportion of construction is typically completed at fiscal year-end as normal business practice)
- Risk that prolonged high energy and raw material prices due to yen depreciation will encourage customers to take a more cautious stance on capital investment through increased investment costs
- Risk of deteriorating profitability as indicated by the decline in segment profit margin (from 5.7% in the prior period to 3.6% in the current period)
Last updated: June 25, 2026