SUGAI CHEMICAL INDUSTRY CO., LTD. (4120) Stock Price

Sugai Chemical Industry's primary business is the manufacturing and sale of intermediates for pharmaceuticals, agrochemicals, and functional chemicals, as well as surfactants. These products are used across various industries and play a critical role in the manufacturing processes of pharmaceuticals and agrochemicals. The company also conducts research and development and provides services related to these business areas.

Sugai Chemie Co., Ltd., a subsidiary of Sugai Chemical Industry, handles the sales of chemical products and provides production support services. This subsidiary serves as the distribution channel for Sugai Chemical Industry's products to the market, supporting the company's overall business operations. Through this structure, Sugai Chemical Industry has established an efficient production and sales system.

Sugai Chemical Industry is built on organic synthesis technology and operates under the principle that "the power of new technology development is the path to corporate growth." Through forward-looking technology development, the company's fundamental management policy is to pursue contributions to society and shareholders while promoting employee well-being.

The company did not establish a medium-term management plan for fiscal 2024 but is preparing a new plan starting in fiscal 2025. Given economic uncertainty stemming from U.S. tariff policies and other factors, the company plans to assess demand trends and announce its new plan at an early stage.

To establish a trusted corporate foundation, Sugai Chemical Industry is working to reduce inventory levels and decrease interest-bearing debt. Leveraging its organic synthesis technology, the company is pursuing cost reduction and productivity improvements while advancing new product development and expanding production facilities.

To address raw material supply stability, the company is diversifying its supply sources. The company is also improving labor conditions and working environments to ensure stable factory operations and increased production output. It is strengthening its commitment to Environment, Health, and Safety (EHS).

Despite an uncertain business environment, Sugai Chemical Industry has successfully completed factory trial runs for new products and is advancing the development of next-generation products. The company aims to improve performance through securing stable raw material procurement, improving productivity, and reducing costs.