Packaging Business

Leading packaging manufacturer

In this segment, we manufacture and sell packaging containers that are essential for our daily life, including food and beverage cans, plastic bottles and pouches, caps, paper containers, and glass bottles.
We can offer a variety of containers with a diversified product line-up across the group to flexibly respond to the needs of customers and society.

Group Companies in the Packaging business

Paper products
Glass products

Metal products - Beverage cans

Main operations: Manufacturing and sales of metal cans for soft drinks such as ready-to-drink coffee and carbonated drinks, and alcoholic beverage, including beer and Chuhai cocktails

*1: Affiliate accounted for under the equity method
*2: Non-consolidated subsidiary

Metal products - Cans for food and household products

Main operations: Manufacturing and sales of cans for seafood, fruit and other food products as well as cans for household products such as insecticides and bath agents

Metal products - Metal caps

Main operations: Manufacturing and sales of Maxi caps and crown caps for soft drinks and alcoholic beverage as well as screw caps for food products

Metal products - Other metal products

Main operations: Manufacturing and sales of diversified metal products, including 18-liter cans

Plastic products - PET bottles for beverage

Main operations: Manufacturing and sales of PET bottles for soft drinks such as carbonated drinks and tea beverage, and for alcoholic beverage, including sake and shochu

  • Toyo Seikan Co., Ltd.

    Manufactures and sells various kinds of cans and containers and filling equipment

  • Ryukyu Seikan Kaisha, Ltd.

    Manufactures and sells PET bottles and sells metal cans

  • Toyo Seikan (Thailand) Co., Ltd.

    Manufactures and sells general plastic products; manufactures and sells beverage PET bottles and provides contract filling; a technical support center and administration of group companies

  • Tokan (Changshu) High Technology Containers Co., Ltd.

    Manufactures and sells plastic products

Plastic products - Plastic bottles

Main operations: Manufacturing and sales of plastic bottles for food products such as mayonnaise and salad dressing and for household products, including laundry detergents and shampoos

  • Mebius Packaging Co., Ltd.

    Manufacturing and sales of plastic products

  • Toyo Seikan (Thailand) Co., Ltd.

    Manufactures and sells general plastic products; manufactures and sells beverage PET bottles and provides contract filling; a technical support center and administration of group companies

  • Tokan (Changshu) High Technology Containers Co., Ltd.

    Manufactures and sells plastic products

Plastic products - Plastic films, pouches and trays

Main operations: Manufacturing and sales of plastic pouches for ready-to-eat curry and other food products and refill pouches for laundry detergents and other household products

  • Toyo Seikan Co., Ltd.

    Manufactures and sells various kinds of cans and containers and filling equipment

  • Tokan Kogyo Co., Ltd.

    Manufactures and sells paper and plastic packaging container products

  • Tokan (Changshu) High Technology Containers Co., Ltd.

    Manufactures and sells plastic products

Plastic products - Plastic caps

Main operations: Manufacturing and sales of plastic caps mainly for beverage PET bottles

Plastic products - Other plastic products

Main operations: Manufacturing and sales of plastic cups, BIBs (bag-in-boxes) and various other plastic products

*Affiliate accounted for under the equity method

Paper products

Main operations: Manufacturing and sales of paper containers, including paper cups for beverage and food products, and various types of corrugated cardboard products

Glass products

Main operations: Manufacturing and sales of glass bottles for soft drinks and alcoholic beverage and various types of glass tableware for restaurants and households

Results

For the fiscal year ending March 2023, the Group’s packaging business generated 544,401 million yen in net sales, up 8.8% year on year, and 10,765 million yen in operating loss, compared to operating income of 11,282 million yen for the previous year.

Growth strategies

  • Appropriate cost pass-through in tandem with fluctuations in raw material and energy prices and exchange rates
  • Restructure unprofitable business domains and facilities

Metal products

  • Ensure development and investment results from the Fifth Mid-Term Management Plan
  • Expand sales and enhance capabilities for markets with expected demand growth
  • Reduce the environmental impact from products, processes, and materials

Plastic products

  • Extend sales of caps for PET beverage bottles and retort pouches
  • Invest to capture demand for replacement of glass containers and olefin bottles with PET bottles in food and seasoning markets
  • Explore and develop new businesses

Paper products

  • Advance renovation at each business and rebuild the production system to enhance use of people, things, and money
  • Extend sales of highly eco-friendly products demanded by customers
  • Enhance productivity, improve efficiency in logistics and inventory management through SCM optimization

Glass products

  • Continue development and extend sales of high-value-added products
  • Reduce costs through energy conservation, labor-saving measures, production efficiencies, and workstyle reforms (including use of DX)
  • Establish and expand the silica gradient index (SiGRIN) business (commercialize from FY2023)

Our strength of Packaging business
(Market shares: according to our research)

  • Metal cans

    Top market shares in Japan

    Market shares: Approx. 35%

  • PET bottles
    (including preforms)

    Top market shares in Japan

    Market shares: Approx. 30%

  • Plastic caps for beverage PET bottles

    Top market shares in Japan

    Market shares: Approx. 60%

  • Food/beverage paper containers

    Top market shares in Japan

    Market shares: Approx. 60%

  • Glass bottles

    2nd in the industry

    Market shares: Approx. 30%

Competitive advantages

  • Superior product development capability and quality
  • Products with price competitiveness supported by the capability of stable supply
  • Stable customer base

Issues

  • Developing new businesses
  • Reallocating R&D resources to meet diversifying customer needs
  • Recruiting and developing talent to tackle new areas, including DX and global expertise

Measures of Mid-Term Management Plan 2025

1. Continuous growth in existing business domains

  • Build a revenue model that is not affected by external factors, such as raw material prices and foreign exchange rates
  • Add capacity in tandem with sales extension into high-growth markets
  • Take measures in facility consolidation plus labor savings in shrinking markets
  • Reduce the environmental impact from products, processes, and materials
  • Develop high-value-added products

2. Exploring, commercializing, and monetizing new growth opportunities

  • Develop containers for diversified purposes and occasions
  • Extend sales of metal caps for aluminum can bottles overseas
  • Enhance the organizational structure to explore and develop new businesses
  • Achieve the business plan in the SiGRIN
  • Develop eco-friendly products and services such as special glass products focusing on blue carbon ecosystems

3. Enhancing management foundation to support growth

  • Place personnel in growth fields and improve productivity through review of work processes, application of IoT & DX, and organizational reform
  • Resolve social issues through collaboration with other companies and application of group technology to fields that help form a zero-carbon society, a zerowaste society, and a society coexisting with nature

Strategy and key measures in FY2023

We are making additional efforts to have product prices reflect the increased portion of higher raw material and energy prices as well as fluctuating exchange rates.

Metal products

  • Invest in expanding production lines for high-growth aluminum beverage cans, product lightweighting, environmental sustainability, and labor efficiency

Plastic products

  • Invest in capturing demand for replacement of glass containers and olefin bottles with PET bottles in food and seasoning markets
  • Enhance the organizational structure to explore and develop new businesses
  • Extend sales of caps for PET beverage bottles and retort pouches

Paper products

  • Enhance productivity, improve efficiency in logistics and inventory management through SCM optimization
  • Reduce costs through improved yields and greater plant utilization

Glass products

  • Reduce costs and GHG emissions through glass furnace repair
  • Promote the SiGRIN business