NIPPON SHOKUBAI CO., LTD. (4114) Stock Price

Market cap
¥351.5B
P/E ratio
22.5x
Japanese chemical manufacturer producing acrylic acid, superabsorbent polymers, and specialty chemicals for industries worldwide through 26 subsidiaries.

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Business Overview

Nippon Shokubai is a chemical manufacturing and sales company composed of 26 subsidiaries and 17 affiliated companies and joint ventures. The company's business is divided into two main segments: the Materials Business and the Solutions Business.

The Materials Business manufactures and sells acrylic acid, acrylic acid esters, ethylene oxide, ethylene glycol, ethanolamine, specialty esters, superabsorbent polymers, maleic anhydride, and process catalysts. Nippon Shokubai Trading purchases and resells these products and supplies raw materials.

The Solutions Business manufactures and sells concrete admixture polymers, glycol ethers, secondary alcohol ethoxylates, water-soluble polymers for detergent raw materials, pharmaceutical intermediates, electronic information materials, iodine compounds, resins for adhesives and coatings, ethylenimine derivatives, adhesive-processed products, automotive catalysts, NOx reduction catalysts, dioxin decomposition catalysts, exhaust gas treatment equipment, wet oxidation catalysts, and battery materials.

Nippon Shokubai cooperates with numerous affiliated companies domestically and internationally to manufacture and sell products in each region. For example, Nippon Shokubai America Industries manufactures and sells superabsorbent polymers in the United States, and PT. Nippon Shokubai Indonesia manufactures and sells acrylic acid and superabsorbent polymers in Indonesia.

Management Policy

Nippon Shokubai has established three pillars for its long-term vision toward 2030: business transformation, environmental transformation, and organizational transformation. Under this vision, the company aims to contribute to the realization of a sustainable society while pursuing its own sustained growth. In particular, the company is addressing various social challenges by providing materials and solutions that society needs.

In the new medium-term management plan starting in fiscal 2025, business portfolio transformation is the top priority, with active resource allocation to the Solutions business. Through capital investment in growth areas such as specialty chemicals, electronics, and batteries, the company aims to expand business scale and profitability. Additionally, by leveraging digital technology to accelerate technology development and human resource development, the company will expedite the commercialization of high-performance materials.

In the Materials business, the company will strengthen profitability through equipment optimization, sales expansion in growth markets, and alliances with other companies, aiming for improved productivity. Through these efforts, the company will enhance competitiveness in global growth markets and achieve sustained growth. By implementing these initiatives, Nippon Shokubai aims to realize a sustainable society and enhance corporate value.

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