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: $1.44 billion (¥148,050 million) in printing ink and graphic arts supplies; consolidated results: $2.72 billion (¥279,557 million).

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; Hiroya Aoyama, managing director; Hironori Sakai, director and president of Toyocolor Co., Ltd.; Satoro Takashima, director and president of Toyochem Co., Ltd.; Katsumi Yamazaki, president, Toyo Ink Co., Ltd.; Shuji Miyazaki, director and technical director.

Number of Employees: 7,469 (consolidated).

Comments: The Toyo Ink Group enjoyed an excellent year in 2013, with consolidated sales increasing to ¥279,557 million yen ($2.72 billion), an increase of 12.4%. Profits also reached record-high levels, with operating income at ¥19,728 million ($192 million), recurring income at ¥20,553 million ($200 million), and net income at ¥12,260 million ($120 million).

On the printing ink and graphic arts side, Toyo Ink Group fared well. Graphic arts are represented in two segments at Toyo: Printing and Information and Packaging Materials, which totaled ¥148,050 million ($1.44 billion) in sales in 2013, 12.8% growth from ¥131,291 million in 2012.

The Printing and Information segment had net sales of ¥85,250 million ($829 million) in 2013, an increase of 13.8%. The Packaging Materials segment increased 11.3% to ¥62,530 million ($608 million).

Demand for offset inks in Japan remained low, resulting from ongoing digitalization. However, sales of advanced products increased, including products with high UV sensitivity.

Overseas, the growth of demand for offset inks in China slowed slightly, but demand grew in Southeast Asia and India, and sales of products with high UV sensitivity also increased in the U.S. and Europe.

Regarding gravure inks, demand in Japan for beverage and food-related products remained steady, and sales of new environmentally friendly lamination ink products increased in the second half of the period. Overseas, sales of eco-friendly inks for packaging increased in China and Southeast Asia, and the newly built gravure ink plant commenced full-scale operations in India. Demand for gravure inks for construction materials also remained strong in North America.

In important news, the Toyo Ink Group acquired all outstanding shares of Arets International NV (now Toyo-Arets International NV), the holding company of the Arets Group, a Belgian manufacturer of UV inks.

In terms of raw material costs, Toyo Ink officials noted that prices for petrochemical products and rosin rose sharply, squeezing profits. In response, Toyo Ink expanded its global procurement capability and developed new products. These measures led to the development and sales expansion of commodity gravure ink products with excellent cost performance for growth markets such as Southeast Asia.

Toyo Ink is active in R&D, launching its REXTA solvent-based flexo lamination ink for high-pressure, high heat boil and retort applications, and RIVET, a solvent-based flexo lamination ink formulated for general-purpose packaging applications. Sales of the Multistar SW line of eco-friendly toluene-free and MEK-free lamination gravure inks for packaging increased in China and Southeast Asia.

Toyo Ink is actively expanding its operations throughout the world. Toyo Ink Brasil broke ground on the Jundiai site in 2013 and began operations there this year. The Jundiai factory is expected to meet the increased demand for consumer goods. In China, the company just began operations at a new liquid ink plant in Chengdu; offset ink production is expected to begin there in January. In India, Toyo Ink will soon be starting up operations at its new offset ink plant in Gujarat.