Top Companies Report

3. Toyo Ink SC Holdings Co., Ltd.


7-1, Kyobashi 3-chome 
Chuo-Ku, Tokyo 104-8377 Japan
Phone: +81-3-3272-5731, Fax: +81-3-3272-8688

Sales: $1.39 billion (131,291 million yen) in printing ink and graphic arts supplies; consolidated results: $2.64 billion (248,700 million yen). 

Major Products: Printing inks, newspaper inks, UV curing inks, gravure inks, graphic arts supplies, graphic arts equipment, can coating finishes, resins, adhesives, waxes, laminating adhesives, coating and painting materials, pigments, processed pigments, plastic colorants, media materials, natural products.

Key Personnel: Kunio Sakuma, chairman; Katsumi Kitagawa, president; Masahiro Sumiyama, managing director; Katsumi Yamazaki, president and representative director of Toyo Ink Co., Ltd.; Hironori Sakai, director and president of Toyo Chem Co., Ltd.; Shuji Miyazaki, president and representative director of Toyo Color Co., Ltd.; Madoka Yasuike, director; Katsumi Yamazaki, representative director of Toyo Ink Co., Ltd.

Number of Employees: 7,469 (consolidated).

Comments: Toyo Ink SC Holdings Co. made slight gains in sales in 2012, with the company’s overall sales increasing 1.4% to 248,700 million yen ($2.64 billion). Profits were also up significantly, with operating income at 17,547 million yen ($186 million), up 28.6% compared to the previous fiscal year. 

Graphic arts are represented in two segments at Toyo, Printing and Information and Packaging Materials, which totaled 131,291 million yen ($1.39 billion) in sales in 2012, virtually flat in terms of growth from 131,700 million yen in 2011. 

The Printing and Information segment had net sales of 75,131 million yen ($797 million) in 2012, a decline of 1.3%. The Packaging Materials segment increased 1.1% to 56,160 million yen ($596 million).
In offset inks, demand in Japan remained stagnant, but demand for commercial and newspaper printing has been recovering. Sales of inks for web offset printing and advanced products also increased, including products with high UV sensitivity and hard coat products used for touch screens.

In China, sales of UV inks remained steady due to increased packaging demand for goods such as alcohol, tobacco and cosmetics. As for gravure inks in Japan, sales of mainstay gravure inks for packaging were sluggish in the first half, but demand recovered in the second half, especially for food packaging. The general consumer market in China and Southeast Asia continued to expand, resulting in increased sales of gravure inks for packaging. Demand for gravure inks for decorative surface materials also remained strong in North America.

Toyo Ink made two significant moves during the past year. In April, Toyo Ink SC Holdings Co. acquired Arets International NV, the holding company of the Arets Group, a Niel, Belgian-based UV ink specialist. Toyo Ink Group paid €9 million (1.17 billion yen, or $11.8 million) to obtain all the outstanding shares in Arets International NV. Arets had sales of €48,680,000 ($63.6 million) in 2012, although, after taxes, the company recorded a loss of €2,423,000 ($3,167,000).

In an internal matter, Toyo Ink merged Toyo Ink Mfg. America, LLC into Toyo Ink America, LLC. The merging of the two companies, the Group’s consolidated subsidiaries, will reinforce the management base and bolster Toyo Ink Group’s competitiveness in North America.

To offset higher raw material prices, the Toyo Ink Group continues to implement cost reductions, locating alternative raw materials, adopting locally available resources as the company moves forward with the localization of its production operations, and issuing selling price adjustments. 

The company made some significant product introductions during the past year. These include Multistar, a toluene- and MEK-free lamination ink; Lioalpha, a high-functional lamination gravure ink; and the T-Press Liojet series of water-based inkjet inks.

Responding to increased demand for environmentally conscious products from the printing market, the Toyo Ink Group will push forward with the development and business expansion of environmentally sound ink products, such as non-VOC sheetfed, high-sensitive UV (low-power UV-curable), water-based inkjet and water-based gravure. The Group also stepped up global deployment, expanding production bases in growth regions and developing products suited to local needs.

In Delhi, India, the Toyo Ink Group established a new manufacturing site for gravure inks at the end of last year. At present, sales volume is showing favorable growth and is expected to show a rising trend in the future. Toyo Ink has already broken ground on a second production site, Toyo Ink India Gujarat factory, in western India, and plan to start production of offset inks by spring of 2014.

The Group is also expanding production bases in growth regions such as Vietnam and Brazil, with the aim of developing products suited to regional needs. Toyo Ink Vietnam Co., Ltd., a new gravure ink production base in Vietnam, will start up by the end of this fiscal year. A new offset and gravure manufacturing facility is also under construction in Brazil, with plans to being operations in 2014. 

In inland China, Toyo Ink Group also plans to launch a sales and color-mixing base at Chengdu Toyo Ink Co., Ltd. by fall of 2013 and has sites to set up a gravure ink production facility in China sometime in the future. 

In the strategic markets of India, China and Brazil, the Toyo Ink Group will press forward with the expansion of production bases and further business development activities. In addition, to ensure effective coordination of processed product supply between raw materials procurement sites and global operating units, Toyo Ink Group will expand its global SCM system and maximize supply chain synergies throughout the Group.