Top Companies Report

1. DIC Corporation


1. DIC Corporation
(Including Sun Chemical Corporation)

DIC Building
7-20 Nihonbashi 3-chome
Chuo-ku, Tokyo, Japan 103-8233
Phone: +81 3-3272-4511
Fax: +81 3-3278-8558
Sun Chemical:

Sales: DIC: $4.88 billion (¥404.4 billion) in graphic arts, including Sun Chemical, which is approaching $3.5 billion in sales. Total sales: $9.40 billion (¥779 billion).

Major Products: Broad product portfolio with capabilities in web heatset and sheetfed offset; publication and packaging gravure; news ink and publication coldset; flexographic packaging inks; corrugated packaging inks; energy curable inks and coatings; screen inks, toner, inkjet materials, adhesives for packaging, overprint varnishes, specialty coatings, effect inks, security inks and coatings, printing consumables and organic pigments for inks, plastics, paints, coatings and cosmetics.

Key Personnel: Kazuo Sugie, president and CEO and president, Printing Inks & Supplies Business Operations; Kaiji Yamaki, executive vice president and president, Synthetic Resins Business Operations in charge of Purchasing and Logistics Div.; Kazuya Shimoizumi, senior managing executive officer and president, Chemical Solution Materials Business Operations; Yasufumi Miyazaki, managing executive officer and chairman, DIC (China) Co., Ltd. and chairman, DIC (Shanghai) Co., Ltd.; Yoshihisa Kawamura, managing executive officer and president, Neo-Graphic Arts Materials Business; Kanji Oki , managing executive officer and president and CEO, DIC Graphics Corp.; Yutaka Hashimoto, managing executive officer and general manager, Corporate R&D Dept. and Central Research Laboratories.

Number of Employees: Approximately 22,000 worldwide.

Comments: DIC Group revised its business segments effective April 1, 2010, with Printing Inks & Supplies becoming the largest segment, followed by Neo-Graphic Arts Materials, which includes organic pigments. This reorganization is an important part of DIC’s effort to shift from a product-specific to a market-focused management approach

DIC Group enjoyed 2.8% growth overall to ¥779 billion in fiscal year 2010, although Printing Inks & Supplies suffered a slight decrease, with sales declining 2.6% from ¥415.4 billion to ¥404.4 billion. Overall profitability of DIC improved 33.6% in 2010, to ¥37.2 billion, while the profitability of the Printing Inks & Supplies segment rose 4.2% to ¥16.1 billion in 2010.

In terms of regional markets, the domestic market saw 5% growth in the Printing Inks & Supplies segment to ¥97.5 billion, driven by the addition of The Inctec Inc. Although demand for gravure inks in Japan remained level for use on beverage containers and in food packaging, offset and news inks struggled as a result of falling demand for publishing and advertising leaflets and declining print runs and page counts for newspapers. Profitability suffered, dropping 13.5% primarily due to higher raw materials costs.

The Americas and Europe are the largest market for Printing Inks & Supplies. Sales dropped 6.9% to ¥256.6 billion, and operating income declined 3.4% to ¥7.6 billion. Those figures are somewhat misleading, as sales in the Americas and Europe were essentially flat and operating income rose in terms of the local currency, but were down due to the appreciation of the yen.

While sales for inks for advertising leaflets, catalogs and packaging inks in North America and Europe remained firm, sales of publishing and news inks declined as a result of shrinking print runs for newspapers and magazines, among others. Central and South America enjoyed an increase in sales as demand for all products, particularly packaging inks.

Asia and Oceania showed the greatest growth for the Printing Inks & Supplies segment, with sales rising 13.8% to ¥61.0 billion, and operating income rising 28.9% to ¥5.6 billion. Gravure and offset ink sales were strong in the People’s Republic of China, while gravure ink sales grew in Southeast Asia. India also was an excellent growth market, with strong sales in news, offset and gravure inks.