Steel Plate Related Business
Centered around Toyo Kohan Co., Ltd., the company adds value to steel using the unique technologies it has cultivated since its founding, such as rolling, surface treatment, and lamination, and its business focuses on the manufacture and sale of various steel sheet materials that are used in all aspects of daily life, including materials for cans, electrical and electronic parts, automotive and industrial machinery parts, and construction and home appliances.
Group company in Steel Plate Related Business
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Toyo Kohan Co., Ltd.
Manufacture and sale of tinplate, thin sheets, various surface-treated steel sheets, and various functional materials
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KOHAN SHOJI CO., LTD.
Sales of steel plates and processed products
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TOYO PAX CO., LTD.
Manufacturing and sales of packaging materials, contract packaging work
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KYODO KAIUN CO., LTD.
Domestic shipping, freight forwarding, customs clearance, agency business
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TOYO PARTNER CO., LTD.
Contracting for welfare services for health insurance associations, 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 KOHAN SHANGHAI CO., LTD.
Sales of steel plate-related products, hard materials, automatic bundling machines, etc., and provision of related services
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TOSYALI TOYO CELIK ANONIM SIRKETI *
Manufacture and sale of cold-rolled steel sheets and surface-treated steel sheets
*Equity method affiliate
Performance
Sales were 89,987 million yen (up 2.3% from the previous year), and operating income was 7,694 million yen (up 5.8% from the previous year).
SWOT analysis
Competitive Advantage
- We have a history of applying our highly specialized technologies, such as material processing, rolling, and surface treatment, which we have accumulated over many years, and our proprietary technologies to a wide range of uses and other businesses through our ingenuity.
Assignment
- Maintaining and developing existing businesses
- Expanding business areas, developing new fields, and optimizing the business portfolio
- Contributing to solving climate change issues
- Fostering an organizational culture that supports people who take on challenges and improving employee engagement
Risk
- Increasing quality requirements
- Difficulty in procuring resources and rising costs
- Declining demand in the domestic market due to a declining birthrate and aging population
- Economic downturn and intensifying market competition (loss of market share due to increased production capacity of competitors, etc.)
- Unstable international situation and fluctuations in financial markets
Opportunity
- Productivity improvements due to advances in AI and digitalization
- Increasing demand for environmentally friendly and resource-saving products such as EVs and hybrid vehicles
- Increased profits from overseas products due to the weak yen
Strategies for sustainable growth
- Investing management resources in growth areas and strengthening competitiveness
- Developing new business areas and fields and responding to environmental concerns
- Establishing a supply system for battery materials (nickel-plated steel sheets) for the growing demand for EVs and hybrid vehicles
- Maintain and improve profitability by continuing to shift to high-value-added products, primarily nickel-plated steel sheets
- Promoting research and development of next-generation battery materials to optimize the business portfolio
Progress and review of measures for sustainable growth in fiscal 2024
- Continue production and sales activities for growing automotive secondary battery materials
- Start of development of next-generation battery materials
Development of negative electrode current collector for next-generation batteries certified as "Supply Security Plan for Storage Batteries" by the Ministry of Economy, Trade and Industry
1. Sustainable growth of existing businesses
- Improved profitability and reduced environmental impact through improved productivity due to the renewal of aging equipment
- Business portfolio optimization
2. Exploration, commercialization, and monetization of new growth areas
- Capture demand for automotive secondary batteries and continue to consider capital investment
- Considering investments to create new products
3. Strengthening the management foundation to support growth
- Promoting human capital management
- Addressing climate change issues through the introduction of solar power generation (off-site PPA, etc.)
- Improving productivity through IT (ERP, RPA, AI)
- Countermeasures for aging facilities at Kudamatsu Plant (equipment renewal, etc.)
4. Towards improving capital return
- Investment in demonstration facilities for the development of anode current collectors for next-generation batteries
Strategies and key measures for fiscal 2025
- Steady execution of orders and supply for materials for automotive secondary batteries, which are experiencing significant growth
- Strengthening development of anode current collectors for next-generation batteries for future mass production
- Steady construction and promotion of a supply system for materials for automotive secondary batteries