Kurogane Kosakusho Ltd.
7997・Standard Market・Other Products
Business
Kurogane Kosakusho Co., Ltd. is a manufacturer of steel furniture and building ancillary equipment founded in 1927, listed on the Standard Market of the Tokyo Stock Exchange. The company operates two segments: the Furniture-Related Business (office furniture and educational furniture) and the Building Ancillary Equipment Business (building ancillary equipment and clean equipment for medical and welfare facilities). Its main customers include corporations, government offices, medical and welfare facilities, and factories, with delivery through a nationwide network of distributors as well as a direct sales system. Production is concentrated at the Tsu Plant in Tsu City, Mie Prefecture, and the company is also characterized by its solution sales leveraging its long-standing sales partnership with Steelcase Inc. of the United States. The group consists of the Company, three subsidiaries, and one affiliated company.
Business Model
The Furniture-Related Business operates mainly on a build-to-forecast basis, selling to customers nationwide through distributors and direct sales. Building Ancillary Equipment is produced on a build-to-order basis, including OEM contracts, and delivered to hospitals, factories, and buildings. The group has a logistics subsidiary (Kurogane Kosan) that enables integrated support from manufacturing through delivery and installation. Of total sales of ¥6,342 million, the Furniture-Related Business accounted for ¥4,721 million (approximately 74%), while Building Ancillary Equipment accounted for ¥1,621 million (approximately 26%).
Company Strengths
In 1973, the company established KSM Co., Ltd. through a partnership with Steelcase Inc. of the United States, and began manufacturing and selling office system furniture. Building on this partnership of over 50 years, the company has developed solution sales leveraging the products and expertise of a global brand, contributing to expanded order intake in the Tokyo metropolitan area.
In 2007, the Neyagawa Plant was relocated and consolidated, and in 2023, the Kyoto Plant was likewise relocated and consolidated into the Tsu Plant, enabling steel furniture, Building Ancillary Equipment, and clean equipment to be manufactured at a single site. Through strategic equipment upgrades, including capital expenditure of ¥75 million in FY2025 (ending November 2025), the company has strengthened its capability to handle multi-variety, variable-volume production, such as Custom-Order Fixtures for Logistics Facilities, resulting in increased sales of custom-order products.
Since 1985, the company has manufactured clean room-related equipment for industrial and hospital use, producing Clean Equipment Air Conditioners (for Operating Rooms), units for sterile rooms, and air conditioning equipment for factories. In FY2025 (ending November 2025), sales in the Clean Equipment and Other Equipment segment exceeded those of the previous consolidated fiscal year, with manufacturing know-how for specialized equipment for medical facilities serving as a differentiating factor.
ENVALITH's Perspective
Performance Trend
Over the past five fiscal years, revenue peaked at ¥8,374 million in FY2021 and has since trended downward, falling to ¥6,342 million in FY2025. For the interim period of FY2026 (ending November 2026), revenue was ¥3,484 million, up 0.2% year on year and essentially flat. The Furniture-Related Business recovered with a 9.4% increase (¥2,775 million), while Building Ancillary Equipment saw a sharp 24.7% decline (¥708 million). External factors—rising prices of petrochemical-related products, yen depreciation, and higher labor costs—squeezed gross margin, and combined with an increase in SG&A expenses, the company fell into an operating loss of ¥21 million. The full-year forecast has been revised to revenue of ¥7,450 million and operating income of ¥70 million, but this assumes a substantial recovery in the second half.
Growth Strategy
Under the medium-term management plan 'Power Up 2028', the company is pursuing expansion of the Office Furniture business, recovery of custom-order product orders, and pass-through of cost increases to selling prices.
The company is focusing on workplace proposals leveraging its partnership with Steelcase, expanding inquiries and orders in the Greater Tokyo area. In the interim period of FY2026 (ending November 2026), orders in the Greater Tokyo area have remained solid, with Furniture-Related Business segment sales up 9.4% year on year.
Custom-Order Fixtures for Logistics Facilities, leveraging the company's strength as a sheet metal manufacturer, is positioned as a key focus profit business. Although orders declined versus plan in the interim period due to the end of production for certain projects, design and quotation requests have increased, and order recovery is expected in the second half.
For medical and welfare facilities, the company is thoroughly applying selective order-taking for small-to-medium and renovation projects, improving the gross margin per project. The segment loss in the interim period of FY2026 (ending November 2026) narrowed to ¥41 million from ¥73 million in the same period of the previous year, confirming an improving trend.
The company continues to pass through to selling prices the cost increases from rising prices of steel sheets and petrochemical-related products as well as higher costs of imported products due to yen depreciation. It is also strengthening billing of incidental expenses such as handling charges and implementing cost reductions in parallel, maintaining the gross margin at roughly the same level as the same period of the previous year.
The company is strengthening its sales capabilities through workforce expansion and improved compensation. It is also promoting efforts toward collaboration and partnerships with external business operators, but in the current interim period, the increase in personnel expenses has been the main factor behind higher SG&A expenses, indicating that the company is in an investment phase.
Last updated: July 17, 2026