Engineering, Filling and Logistics Businesses
We are expanding our business with the aim of expanding the packaging value chain and reducing the environmental impact, including the manufacture and sale of can and lid making machines and beverage filling equipment, contract manufacturing and sales of beverage filling products, aerosol products and general filling products (liquid filling products), and freight truck transportation and warehousing businesses.
Group company engaged in Engineering, Filling and Logistics Businesses
Engineering
We manufacture and sell can and lid making machines and beverage filling equipment.
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Toyo Seikan Group Engineering Co., Ltd.
Manufacture, sale and technical services for can making machines, filling machines, packaging machines, food processing machines, etc.
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Tokan Trading Corporation
Sales of container materials, petroleum and chemical products, food machinery and equipment, and parts
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Toyo Glass Machinery Co., Ltd.
Manufacture and sale of molds and machinery for glass and plastic containers
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Stolle Machinery Company, LLC
Development, manufacturing, sales and various services related to can and lid manufacturing machines
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Stolle Machinery do Brasil Industria e Comercio Equipamentos Ltda.
Manufacturing, sales and various services for can and lid manufacturing machines
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Stolle Asia Pacific Co., Ltd
Sales of can and lid manufacturing machine parts and various services
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STOLLE MACHINERY (SHANGHAI) CO., LTD.
Sales of can and lid manufacturing machine parts
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Stolle Machinery (Guangdong) Co., Ltd.
Manufacture and sale of can manufacturing machine parts
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Stolle Europe Ltd.
Sales and services of can and lid manufacturing machines
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Stolle Machinery UK Ltd
Manufacturing, sales and various services of can manufacturing machines
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Stolle EMS Precision Limited
Manufacture and sale of can manufacturing machine parts
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Stolle EMS Polska Sp. z oo
Manufacturing, sales and various services of can manufacturing machines
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Kanagata (Thailand) Co., Ltd.
Manufacture and sale of molds for plastic products, and parts for injection molding machines
filling
We undertake the contract manufacturing and sales of beverage-filled products such as tea, aerosol products such as insecticides and antiperspirants, and general-purpose filled products (liquid-filled products) such as shampoo and hand soap.
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Toyo Aerosol Industry Co., Ltd.
Contract manufacturing and sales of aerosol products and general filling products
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TM Pack Co., Ltd.
Contract filling business for PET bottled beverage products
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TOYO PACK KIYAMA Co., Ltd. *
Beverage product filling contract business
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Toyo Seikan (Thailand) Co., Ltd.
Manufacture and sale of plastic products, manufacture and sale of PET beverage bottles and contract filling business, technical support center, administration services for group companies
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Toyo Pack (Changshu) Co., Ltd.
Manufacturing, sales and contract filling of PET beverage bottles
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Toyo Filling International Co., Ltd.
Contract manufacturing and sales of aerosol products
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PREMIER CENTER GROUP SDN. BHD.
Contract filling of home care products, personal care products, etc.
*Non-consolidated subsidiary
logistics
We are engaged in businesses such as truck transportation and warehousing for our group companies.
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Toyo Mebius Co., Ltd.
Truck transportation, warehousing, etc.
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Tokan Logitech Co., Ltd.
Truck transport business, cargo handling contracting business, etc.
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Shin-Sankyo-Pd.
Freight truck transportation industry
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TOYO GLASS LOGISTICS CO., LTD.
Freight forwarding business, various on-site work contracting
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Toyo Mobius Logistics (Thailand) Co., Ltd.
Freight truck transportation industry
Performance
Sales were 146,407 million yen (down 28.1% from the previous year), and the operating loss was 9,728 million yen (compared to an operating profit of 9,422 million yen in the previous year).
SWOT analysis
Competitive Advantage
Engineering Business
- A technology development system that utilizes the collective strength of our group, which has knowledge of materials, molding, machinery, analysis, and quality.
- Supply capacity, a stable customer base in the US, Europe and other global markets, and a high market share
Filling Business
Beverage filling
- High quality trusted both domestically and internationally
- Providing a total group service of "containers + filling + logistics" in Japan
- Supporting a wide range of contents and small to medium lots overseas, and low-cost operations
Aerosol products and general filling products
- High technical capabilities, quality control capabilities, and development capabilities cultivated as a leading company in the aerosol industry
- Pharmaceutical aerosol production capacity (equipment and technology)
Logistics Business
- Highly efficient transportation and delivery utilizing each base for container loading and unloading
Assignment
Engineering Business
- Building a profit structure that is not affected by cyclical fluctuations in demand trends
Filling Business
Beverage filling
- Explore growth opportunities that will lead to the creation of group synergies both domestically and internationally, and address the lack of production capacity to meet robust demand overseas.
Aerosol products and general filling products
- Optimizing and streamlining operations at production sites
Logistics Business
- Securing human resources, including those from partner companies, and addressing the driver shortage
Risk
- Impact of country and geopolitical risks associated with global expansion
- Cyclical stagnation in equipment demand in the engineering business
- Risks of raw material procurement due to changes in the external environment in beverage filling, and shift to in-house production by customers
- Difficulty in recruiting personnel due to a decline in the working population
- The 2024 problem in the logistics business has led to an outflow of human resources and recruitment difficulties at partner companies
Opportunity
- Demand for aluminum cans in the engineering business is expected to continue to grow, with sustainability and recycling expected to be key drivers of market growth.
- Diversifying preferences in beverage filling
- Expand the market size by expanding into new fields for aerosol products and general filled products
- Influx of human resources due to the establishment of a stable business foundation in the logistics business
Strategies for sustainable growth
Engineering Business
- We not only sell equipment, but also provide comprehensive services including spare parts supply and equipment upgrade support.
- Maintaining a governance system and effectively utilizing capital with operating profit, revenue, and working capital as key indicators
- Partnerships for providing products and technologies
- Secure market share, protect technology, and establish a robust supply chain
Filling Business
Beverage filling
- Sales of equipment and containers based on the filling business, and development of new technologies
Aerosol products and general filling products
- Review sales prices to improve profit margins, and restructure unprofitable businesses and production lines
Logistics Business
- Logistics that do not interrupt your business activities
- Highly efficient transportation and delivery utilizing our nationwide bases
- Strengthening sales to increase orders for new customer products
- Logistics that utilizes IT to reduce labor burden
Progress and review of measures for sustainable growth in fiscal 2024
1. Sustainable growth of existing businesses
Engineering Business
- In fiscal 2024, market conditions were tough and growth was suppressed due to a decline in customer investment appetite caused by rising interest rates in the United States and a decline in orders, resulting in lower revenues and profits. However, we will work to secure profits by adjusting the scale of our business in line with the short-term market contraction, providing spare parts and support services, and winning turnkey projects in emerging countries where stable growth continues.
Filling Business
Beverage filling
- Considering investment in expanding the PET bottle aseptic filling line at Toyo Seikan (Thailand) Co., Ltd. in Thailand with the aim of expanding business scale.
Aerosol products and general filling products
- Implementing price revisions for unprofitable products, improving production efficiency and reducing manpower
Logistics Business
- Shortening lead times, improving transportation efficiency and labor savings through joint deliveries between group companies in charge of logistics operations and mutual use of each base
2. Exploration, commercialization, and monetization of new growth areas
Engineering Business
- Development of labor-saving equipment and systems
Filling Business
Beverage filling
- Explore opportunities to expand the filling business both domestically and internationally
Aerosol products and general filling products
- Acquiring PREMIER CENTRE GROUP SDN. BHD. as a subsidiary and pursuing business synergies
Logistics Business
- Expand sales to receive new customer product shipping orders
- Promoting packaging material cleaning business in line with the advancement of pallet transport
3. Strengthening the management foundation to support growth
Engineering Business
- Promoting sustainability and corporate social responsibility (CSR)
Filling Business
Beverage filling
- Promoting work style reform, reducing manpower through the use of IoT and robots, allocating human resources to growth fields, reducing the environmental impact of products and contributing to a decarbonized society
Aerosol products and general filling products
- Development of new technologies and products through industry-academia collaboration
Logistics Business
- Promoting work style reforms to create a comfortable working environment, including reviewing logistics facilities to put drivers first
4. Towards improving capital return
Engineering Business
- Reduce costs by increasing in-house production and improve technical capabilities and lead times
Filling Business
Beverage filling
- Increase in sales volume due to increased production capacity overseas
Aerosol products and general filling products
- Closing production lines for unprofitable products
Logistics Business
- Promoting efficiency and standardization of transportation and delivery, including vehicle allocation coordination with customers
Strategies and key measures for fiscal 2025
Engineering Business
- While adjusting the scale of business to suit the market environment, we will capture the needs of regions where demand for beverage canning equipment is expected to increase.
- Increased profitability through increased productivity and reduced costs
Filling Business
Beverage filling
- Improving productivity and profitability on existing production lines
- Considering additional investment to increase production capacity and improve profitability in Asia, where demand is expected, and to expand business.
Aerosol products and general filling products
- Review sales prices to improve profit margins, streamline and optimize operations at production sites, and consider discontinuing production lines
- Pursuing business synergies following the acquisition of PREMIER CENTRE GROUP SDN. BHD.
Logistics Business
- Shortening lead times by switching to pallet transport and increasing the number of in-house vehicles, promoting efficiency through joint deliveries between group companies in charge of logistics and mutual use of each base, and considering new logistics bases