ENVALITH
小津産業株式会社 logo

OZU CORPORATION

7487Standard MarketWholesale Trade

小津産業株式会社 logo
OZU CORPORATION7487

Nonwoven Fabrics Business

Ozu Corporation's core segment. A central business handling the processing, sale, import, and export of nonwoven fabric products.

PeriodCurrentPreviousChange
Net Sales (Full Year, FY2026 ending May 2026)¥10,482 million¥9,961 million
Segment Profit (Full Year, FY2026 ending May 2026)¥510 million¥362 million
Segment Assets (Full Year, FY2026 ending May 2026)¥17,573 million¥16,904 million
Depreciation (Full Year, FY2026 ending May 2026)¥334 million¥328 million
Increase in Tangible Fixed Assets (Full Year, FY2026 ending May 2026)¥83 million¥163 million

Business Details

Sells a diverse range of nonwoven fabric products for electronics, cosmetics, medical, industrial materials, and decontamination applications. Domestically, Asahi Ozu Co., Ltd. handles processing, Diplo Co., Ltd. handles manufacturing and sales, and Nihon Plant Seeder Co., Ltd. handles agricultural materials. Overseas, Ozu (Shanghai) Trading Co., Ltd. conducts sales into China. The segment comprises four sectors—Clean, Wellness Care, Eco Products, and Consumer—and accounts for approximately 97% of consolidated net sales.

Recent Overview

Driven by the Clean and Wellness Care sectors, both net sales and profit exceeded the prior period.

For the full year of FY2026 (ending May 2026), Nonwoven Fabrics Business net sales were ¥10,482 million (up 5.2% year on year), and segment profit was ¥510 million (up 41.1% year on year). In the Clean sector, AI-related, optical-related, and pharmaceutical-related demand was favorable. In the Wellness Care sector, cosmetic and wet products trended firmly. In the Eco Products sector, orders for decontamination cloth fell short of plan, but environmentally-conscious products offset this. At Diplo Co., Ltd., both sales and profit fell below the prior period due to increased investment in building operational infrastructure.

Key Products

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Clean Sector Products

Centered on AI/data center-related, semiconductor/optical-related, and pharmaceutical-related applications. Domestic demand tied to AI-related needs and strong overseas optical-related demand contributed favorably. Demand for material procurement also arose against the backdrop of the situation in the Middle East.

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Wellness Care Sector Products

Domestic cosmetic product demand trended favorably. Demand for wet products remained firm through the fourth quarter as well. Development of home healthcare and disaster-preparedness stockpile-related products is also being promoted by leveraging Diplo Co., Ltd.'s manufacturing capabilities.

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Eco Products Sector Products

Although orders for decontamination cloth (Godairyoku) fell short of the initial plan, environmentally-conscious products trended firmly. Sales of environmentally friendly products continued, centered on the expanded sale of Oil Taker (oil absorbent).

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Consumer Sector Products

Sales of antibacterial wet products and eyeglass cleaners for drugstores and similar retailers trended firmly. Operations centered on expanding sales of wet products and mask products manufactured by Diplo Co., Ltd.

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Agricultural Materials & Equipment (Nihon Plant Seeder Co., Ltd.)

Although overseas sales of materials struggled, domestic sales of materials and machinery trended favorably. Growth is driven by accelerating the pace of new product development and the rapid expansion of crops targeted by the seeder farming method.

Growth Drivers

  • Robust expansion of domestic and overseas demand for Clean Sector Products for AI/data center-related applications
  • Continued strong sales overseas (Ozu (Shanghai) Trading Co., Ltd.) to optical- and AI-related companies
  • Underpinning of demand from continued firm capacity utilization in pharmaceutical- and semiconductor-related fields
  • Development of high-functionality products, cost reduction, and new customer acquisition by leveraging Diplo Co., Ltd.'s manufacturing capabilities
  • Expanded sales of antibacterial wet products and eyeglass cleaners for drugstores and similar retailers (Consumer sector)
  • Accelerated new product development and rapid expansion of crops targeted by the seeder farming method at Nihon Plant Seeder Co., Ltd.

Risks

  • Risk of sluggish orders for decontamination cloth (Godairyoku) in the Eco Products sector
  • Cost pressure from sustained high energy and raw material prices
  • Impact on foreign exchange and exports/overseas sales from US tariff and trade policy
  • Profit pressure from upfront investment in building operational infrastructure and securing stable supply systems at Diplo Co., Ltd.
  • Expected decline in domestic cosmetic product sales in the Wellness Care sector (FY2027 ending May 2027)
  • Struggles in overseas materials sales at Nihon Plant Seeder Co., Ltd. and risk of adverse weather and natural disasters

Last updated: August 25, 2025