Investor Relations

Functional Chemicals Business

Yukio Tachibana Member of the Board
Senior Managing Director
Head of the Functional Chemicals Group

Business Vision

We contribute to the creation of an “ultra-smart society” and the realization of the SDGs by applying our core resin, colorant and catalyst technologies to provide functional chemicals that offer special characteristics for the fields of information and communications, digital printing, and energy and resource conservation.

Mid-term Business Strategy

We will continue to grow by providing functional chemicals that offer special characteristics via developing and integrating unique materials, and by combining the forces of Group companies.

Business Profile

The functional chemicals business is composed of four segments, including Polatechno Group, a consolidated subsidiary that is a core group company, and the three businesses of functional materials, color materials, and catalysts. The Nippon Kayaku Group products that apply our resin, colorant and catalyst technologies are widely used in various ways focusing on the electronics field. We are aiming to contribute to the creation of an “ultra-smart society” and the realization of the SDGs by providing functional chemicals that offer special characteristics to a market undergoing rapid change, and establishing the fields of information and communication, digital printing, and energy conservation and resource conservation as our target.

Core Products

Epoxy Resins (Functional Materials Business)

Epoxy resins, which are core products for the functional materials business, have excellent characteristics, and we offer a range of products depending on user’s needs. In particular, our NC-3000 series of environmentally-friendly epoxy resins that have superior flame resistance, heat resistance, and adhesion allow us to obtain a cured object with high flame resistance without adding phosphorous-based or halogen-based flame-retardants. These resins have been well received as high-end products on domestic and overseas markets. They are mainly used as materials for electronic devices, such as semiconductor encapsulation, print circuit boards, and multilayer circuit boards. Recently, we are also working on market expansion by focusing on modifiers for carbon fiber reinforced plastics (CFRP), which are used as structural or other materials in vehicles and airplanes, as a new application.

Functional Materials Business

Colorants for Inkjet Printers (Color Materials Business)

The development of colorants for inkjet printers, which accounts for more than 40% of the sales of the color materials business, began in 1992. We have been engaged in the development of colorants that are more vivid and colorfast than ever before by taking advantage of the technology we have cultivated. As a result, we now have many products in our range that are water soluble colorants with high durability strengths including being light fast, gas proof and ozone proof. In addition to our consumer products used in homes and offices, we are supporting the spread of inkjet printers globally by also putting together commercial applications for alternatives to offset printing in industry and various kinds of colorants for textile use that allow a reduction of waste water use in the dyeing process.

Color Materials Business

Catalysts for the Production of Acrylic Acid (Catalysts Business)

One of the core products for the catalysts business is catalysts for the production of acrylic acid. Acrylic acid is widely used as a raw material for many daily necessities including super absorbent polymers (SAPs) used in disposable diapers, sanitary products, and the like, as well as painting materials, adhesives and cleansers. We supply the Japanese and overseas chemical companies with catalysts, which are essential to the manufacturing process of acrylic acid. Since the performance of catalysts has a major impact on quality and manufacturing costs as well as the price of the end product, we are contributing to energy conservation and a reduction in environmental impact by providing high yield and longer lasting catalysts.

Catalysts Business

Dye-type Polarizing Films (Polatechno Group)

Dye-type polarizing films and applied products, which account for about 40% of the sales of Polatechno Group, have superior performance in durability. They have earned high regard in applications for LCD projectors and automotive on-board displays where high reliability is sought. Amidst this backdrop, we have research and development capabilities and technological strengths that make use of the advantages of both Nippon Kayaku, which has an edge in development capabilities of materials including dyes, and Arisawa Manufacturing, which specializes in the technologies of coating, weaving and molding.

Polatechno (related group company)

Business Environments and Future Outlook

The key business domains of the functional chemicals business are the fields of information and communications, digital printing and energy and resource conservation. The penetration of IoT and rapid spread of AI are bringing about major changes in society. I believe these will make our lives more comfortable. Our mission is to contribute to the realization of the vision for a “Super Smart Society” by providing unique functional chemicals through our core resin, colorant, and catalyst technologies.
 To survive in the coming century, we cannot rest on the laurels of the past 100 years. We shall intrepidly take on the challenge of global expansion with an awareness of the anticipated risks to create new businesses. Taking these actions will definitely put us within sight of our vision of achieving 90 billion yen in consolidated net sales, the numerical targets for fiscal 2021.

Key Themes in Mid-term Business Plan

Theme Details of initiatives
Establishing safety and quality management systems Strengthen quality management by practicing uniform management of QMS and adopting LIMS
Strengthening research and development 5-year new product ratio of 20%
Develop unique new products that anticipate market needs
Creating and providing intellectual added value Strengthen manufacturing capabilities
Pursuing global management Expand business at overseas Group companies
Strengthening the business through internal and external partnerships M&A aimed at securing complementary technology
Partner with domestic and overseas companies to ensure BCP
Building a strong business base capable of supporting growth Enhance corporate governance structure at Group companies
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