【JP:4990】Stock Price

Showa Chemical Industries primarily operates in the diatomaceous earth and perlite business. This business is divided into filtration aids, building materials and fillers, chemical products, and other products. Showa Chemical Industries manufactures and sells these products directly, as well as through affiliated companies.

For filtration aids, Showa Chemical Industries manufactures and sells products directly, while outsourcing some manufacturing to Hakusan Industries, a consolidated subsidiary. Beijing Ruilaite Trading Co., Ltd. receives product supplies from Baishanzhi Changfu Yuantong Mining Co., Ltd., an equity method affiliate, and sells them worldwide.

Building materials and fillers are also manufactured and sold by Showa Chemical Industries, with manufacturing outsourced to Hakusan Industries. Additionally, Nisshowa Co., Ltd. manufactures products under contract at Showa Chemical Industries' facilities. Chemical products are purchased and sold by Showa Chemical Industries.

For other products, Showa Chemical Industries manufactures and sells products directly, as well as purchases and resells merchandise. Obex Co., Ltd., an equity method affiliate, manufactures and sells marker pen tips and medical devices; however, it has no business transactions with Showa Chemical Industries.

Showa Chemical Industries has established its management philosophy as follows: "We contribute to building a prosperous future by effectively utilizing precious resources to the fullest extent for our customers, society, and the improvement of human life, while supporting a wide range of industries." Based on this philosophy, the company is committed to customer-first principles and pursues the effective utilization of diatomaceous earth and perlite. Additionally, the company is advancing transformations to achieve overall optimization and aims to grow into an organization where each individual continues to evolve.

Showa Chemical Industries' growth strategy focuses on market expansion both domestically and internationally. In the domestic market, while demand growth is expected to slow due to declining birth rates and an aging population, the company is strengthening long-term partnerships across diverse business sectors including food, pharmaceuticals, chemicals, building materials, and water purification. In international markets, the company is actively expanding sales activities in growth regions such as India, Africa, and Southeast Asia.

To contribute to building a sustainable society, the company prioritizes addressing climate change. To enhance customer corporate value, the company has set three strategic challenges: "adopting customer-centric thinking," "improving operational quality," and "entering new business domains." Through these efforts, the company aims to generate stable profits and return value to society.

As concrete initiatives, Showa Chemical Industries is promoting remote work and online sales to reduce costs and strengthen its financial foundation. From April 2025, the company will reorganize its domestic operations to integrate manufacturing and sales divisions, while strengthening technical departments to focus on enhancing technical services and developing new products.

Showa Chemical Industries is also advancing the deepening and expansion of existing businesses while building and nurturing new ventures. Through M&A and technical partnerships, the company will introduce new technologies and pursue business expansion and development. Furthermore, the company is promoting management that prioritizes environmental and safety considerations and endorses the Sustainable Development Goals (SDGs).

In human resource development, using "harmony" and "excellence" as keywords, the company aims to improve operational quality and promote diversity and inclusion. Through internal system reforms and cultural transformation, the company is enhancing employee engagement and developing autonomous talent while building a vibrant organization.