Shinagawa Refra Co., Ltd (TSE: 5351)

Q: What is the new name of Shinagawa Refractories?

The company changed its name to Shinagawa Refra Co., Ltd. in October 2025 to reflect its broader business scope beyond refractories.

Quick Facts / Company Snapshot

Company Name: Shinagawa Refra Co., Ltd.
Headquarters: 12th Fl., Sapia Tower, 7-12, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-0005, Japan
Founded: 1875
Founding Year: 150th Anniversary celebrated in October 2025
Representative: Hiroyuki Fujiwara (President and CEO)
Total Net Sales (FY2024): 144,072 million JPY
Operating Income (FY2024): 13,278 million JPY
EBITDA (FY2024): 17,953 million JPY
Net Profit Attributable to Owners (FY2024): 9,778 million JPY
Total Assets (FY2024): 195,214 million JPY
Net Assets (FY2024): 93,828 million JPY
Equity Ratio (FY2024): 45.6%
Return on Equity (ROE) (FY2024): 11.3%
Number of Employees (Consolidated): 3,732 (as of March 31, 2025)
Overseas Employees: 1,252 (Prior to Reframax acquisition adjustments)
Number of Group Companies: 38 (8 in Japan, 30 Overseas)
Overseas Sales Ratio (FY2023): 30.0%
CO2 Emissions Reduction Rate: 17.3% (vs. FY2022 Results)
Corporate Philosophy: To Achieve the “Optimum” through Ceramics

Company Overview

Shinagawa Refra Co., Ltd. is a global leader in the development, manufacturing, and engineering of refractories and advanced ceramic solutions. Celebrating its 150th anniversary in October 2025, the company underwent a significant rebranding from “Shinagawa Refractories” to “Shinagawa Refra” to reflect its expanded business scope beyond traditional refractories into a broader domain of “Ceramics.”

The company operates under a sophisticated “Sector System” that divides its operations into four key business domains: Refractory, Insulation, Advanced Device & Material, and Engineering. This structure allows Shinagawa Refra to provide comprehensive, one-stop solutions for high-temperature processes across diverse industries, including steel, cement, non-ferrous metals, petrochemicals, and semiconductor manufacturing.

Guided by its new corporate purpose, “To Achieve the ‘Optimum’ through Ceramics,” Shinagawa Refra is aggressively pursuing a global growth strategy known as VISION 2030. This long-term vision aims to transform the group into a global powerhouse with a target of 50% overseas sales ratio and net sales of 240 billion JPY by 2030. The company leverages a vast global network comprising 38 group companies and production bases in Japan, China, India, Indonesia, Australia, the United States, Brazil, and the Netherlands.

Business Segments

Shinagawa Refra operates through four distinct business sectors. The breakdown of financial performance by sector for FY2024 is as follows:

Refractory Sector: 95.8 billion JPY (Approx. 66.5% of Total Revenue)
Engineering Sector: 25.7 billion JPY (Approx. 17.8% of Total Revenue)
Insulation Sector: 18.7 billion JPY (Approx. 13.0% of Total Revenue)
Advanced Device & Material Sector: 4.3 billion JPY (Approx. 3.0% of Total Revenue)

Refractory Sector

Profile: The Refractory Sector is the core business of Shinagawa Refra, responsible for the development and supply of essential materials for industries requiring high-temperature processes. Refractories are critical for the stable operation of industrial furnaces in steelworks, cement plants, and glass manufacturing facilities.

Operational Scope: This sector manufactures two main types of refractories:

Shaped Refractories: Formed under high pressure and fired, commonly known as fire bricks.
Monolithic Refractories: Supplied in powder form and mixed with liquid binders for installation, including castable and gunning materials.
Mold Powders: Used in continuous casting processes to control heat transfer and lubrication.

Performance: In FY2024, the sector faced headwinds from reduced domestic crude steel production. However, it maintained profitability through cost reductions and an improved sales mix. The sector is actively expanding its “GREEN REFRACTORY” lineup, which utilizes over 20% recycled raw materials to reduce environmental impact.

Insulation Sector

Profile: Centered around the subsidiary Isolite Insulating Products Co., Ltd., this sector focuses on energy-saving solutions that are increasingly vital for carbon neutrality.

Operational Scope: The product portfolio includes:

Insulation Bricks: Used as back-up lining in furnaces to suppress heat dissipation.
Ceramic Fibers: Lightweight, high-heat-resistant fibers used for lining and insulation in various industrial applications.
Fireproof Construction Materials: Materials for building safety.

Performance: This sector is experiencing growing demand due to global decarbonization trends. It is expanding its footprint in the semiconductor and battery storage industries, where precise thermal management is crucial.

Advanced Device & Material Sector

Profile: This high-growth sector deals with cutting-edge machinery components and advanced materials, primarily Fine Ceramics.

Operational Scope:

Fine Ceramics: High-precision, high-purity ceramics used in semiconductor manufacturing equipment (lithography, etching, deposition).
Wear-Resistant Ceramics: Components that extend the lifespan of industrial machinery.
Inorganic Paints and Adhesives: High-performance coatings and bonding agents.

Performance: Though the smallest sector by revenue, it is a strategic focus area. The sector is restructuring production bases to increase capacity for semiconductor-related demand.

Engineering Sector

Profile: The Engineering Sector provides integrated services ranging from furnace design and installation to maintenance and repair.

Operational Scope:

Furnace Design: Custom lining designs optimizing thermal efficiency and durability.
Construction: Installation of refractories in blast furnaces, converters, and incinerators.
Maintenance: Repair services using advanced gunning techniques and automation.

Performance: This sector is expanding globally through the acquisition of Reframax, a Brazilian engineering firm. This move allows Shinagawa Refra to export its engineering capabilities to South America and beyond.

History and Evolution

Shinagawa Refra’s history spans 150 years, paralleling the industrialization of Japan.

1875: Founded by Katsuzo Nishimura, who established the first private fire brick manufacturing business in Japan to support gas lamp furnaces.
1887: The company was formally organized as Shinagawa Shirorenga Works.
1916: Merged with Shinagawa Shirorenga Co., Ltd.
2009: A significant merger occurred between Shinagawa Refractories Co., Ltd. and JFE Refractories Corporation, consolidating its position as a market leader.
2022: Acquired the ceramic materials business from Saint-Gobain in the USA (forming SSCA) and Brazil (forming SRB).
2022: Made Isolite Insulating Products Co., Ltd. a wholly-owned subsidiary.
2024: Acquired Gouda Refractories Group B.V. in the Netherlands, establishing a European manufacturing hub.
2025 (May): Acquired Reframax Engenharia S.A. in Brazil to strengthen engineering capabilities in the Americas.
2025 (October): Celebrated the 150th Anniversary. Rebranded from “Shinagawa Refractories Co., Ltd.” to “Shinagawa Refra Co., Ltd.” and introduced a new corporate philosophy and logo.

Products and Services

Refractory Products

Fire Bricks: Dense, high-strength bricks for furnace linings (e.g., for blast furnaces, coke ovens).
Monolithic Refractories: Castables, plastics, and gunning mixes for seamless lining repairs.
Functional Refractories: Specialized nozzles and plates used in continuous steel casting to control molten steel flow.
Mold Powders: Critical additives for steel casting that prevent oxidation and lubricate the mold.

Insulation Products

Insulating Firebricks: Lightweight bricks with high porosity for thermal insulation.
Ceramic Fiber Products: Bulk fibers, blankets, boards, and formed shapes for high-temperature insulation.
Setters: Kiln furniture for firing electronic components.

Fine Ceramics & Advanced Materials

High-Purity Ceramics: Components for semiconductor manufacturing equipment (chucks, rings, arms).
Wear-Resistant Linings: Ceramic liners for chutes and hoppers in mining and power generation.
Inorganic Adhesives: Heat-resistant bonding agents for industrial assembly.

Engineering Services

Furnace Engineering: Complete design and construction of industrial furnaces.
Maintenance Services: Life-cycle management of furnace linings, including demolition and relining.
Diagnostic Services: Analysis of refractory wear and thermal profiles.

Brand Portfolio

Shinagawa Refra: The master brand representing the group’s core refractory and engineering capabilities.
Isolite: The premier brand for high-performance insulation materials and ceramic fibers.
Gouda Refractories: A heritage brand (est. 1901) recognized in Europe for refractories in the petrochemical, non-ferrous, and waste-to-energy sectors.
Reframax: A leading engineering service brand in Brazil and South America.
SSCA (Shinagawa Specialty Ceramics Americas): The brand for advanced ceramic products in the North American market.

Geographical Presence

Shinagawa Refra has established a robust global network to support its “Proximity” strategy—being close to customers physically and relationally.

Japan (Domestic)

Status: Market leader with a dominant share in steel refractories.
Key Facilities: Headquarters in Tokyo, major plants in Okayama (Bizen), Yumoto, and research centers.

Asia (Excluding Japan)

China: Production bases for refractories and mold powders (e.g., Shenyang, Liaoning).
Indonesia: Manufacturing of refractories through PT. Shinagawa Refractories Indonesia.
India: Sales office and manufacturing presence to capture the growing steel market.
Korea: Sales and technical support.
Malaysia & Taiwan: Production bases for insulation products (Isolite).

Europe, Middle East, and Africa (EMEA)

Netherlands: Home to Gouda Refractories, serving as the hub for the region.
Germany: Sales and service office (IIP Europe GmbH).

The Americas

USA: Shinagawa Specialty Ceramics Americas LLC (SSCA) in Pennsylvania and Shinagawa Advanced Materials Americas Inc.
Brazil: Shinagawa Refractarios do Brasil Ltda. and Reframax Engenharia S.A. (Headquarters in Belo Horizonte).

Oceania

Australia & New Zealand: Shinagawa Refractories Australasia, providing refractories to the local steel and non-ferrous industries.

Shinagawa Refra Co., Ltd logo

Financial Performance Analysis

The company has shown resilience and growth despite challenging market conditions in the domestic steel sector.

Consolidated Performance Trend

FY2020: Net Sales 99,969 million JPY
FY2021: Net Sales 110,784 million JPY
FY2022: Net Sales 124,963 million JPY
FY2023: Net Sales 144,175 million JPY
FY2024: Net Sales 144,072 million JPY

Sales have grown significantly over the 5-year period, driven largely by M&A and overseas expansion, stabilizing at the 144 billion JPY level in FY2024.

Profit and Loss Analysis

FY2024 Results:

Net Sales: 144,072 million JPY (Decrease of 0.1% YoY)
Operating Income: 13,278 million JPY (Decrease of 4.4% YoY)
Operating Margin: 9.2%
EBITDA: 17,953 million JPY (Increase of 1.5% YoY)
EBITDA Margin: 12.5%
Ordinary Income: 13,655 million JPY (Decrease of 8.4% YoY)
Profit Attributable to Owners of Parent: 9,778 million JPY (Decrease of 36.0% YoY)

Analysis: While Net Sales remained flat, EBITDA increased, demonstrating strong cash-generating ability. The drop in Net Profit was primarily due to the absence of one-off gains from the sale of fixed assets recorded in the previous year.

Balance Sheet Analysis

As of March 31, 2025:

Total Assets: 195,214 million JPY (Significant increase from 155,137 million JPY in FY2023).
Net Assets: 93,828 million JPY (Increase from 86,967 million JPY).
Equity Ratio: 45.6% (Decreased from 53.8% due to increased leverage for M&A).
Interest-bearing Debt: 61,917 million JPY (Increased from 28,079 million JPY).
Debt-to-Equity (D/E) Ratio: 0.8x.

Analysis: The balance sheet reflects an aggressive growth strategy, with increased assets and debt resulting from the acquisitions of Gouda and other strategic investments.

Cash Flow Analysis

FY2024 Results:

Cash Flows from Operating Activities: 13,104 million JPY (Positive, indicating strong core business performance).
Cash Flows from Investing Activities: -29,834 million JPY (Significant outflow due to acquisition of subsidiaries).
Cash Flows from Financing Activities: 21,995 million JPY (Inflow from borrowing to fund acquisitions).
Cash and Cash Equivalents at End of Period: 26,629 million JPY.

Analysis: The company is actively deploying capital for growth while maintaining a healthy operating cash flow.

Board of Directors and Leadership Team

The leadership structure is designed to balance execution with oversight, recently enhanced with a new corporate governance framework.

Hiroyuki Fujiwara: President and CEO.
Masanori Ogata: Representative Director & Senior Managing Executive Officer.
Heiki Miki: Representative Director & Managing Executive Officer (Overseas Business).
Yoshio Fukusaki: Representative Director & Managing Executive Officer.
Toshihiko Kaneshige: Board Director.
Hirofumi Yamashita: Board Director, Full-time Audit & Supervisory Committee Member.
Keiko Yamahira: Outside Board Director.
Shigeru Nakajima: Outside Board Director, Audit & Supervisory Committee Member.
Masafumi Nagano: Outside Board Director, Audit & Supervisory Committee Member.
Chizuka Urabe: Outside Board Director, Audit & Supervisory Committee Member.

Subsidiaries, Associates, Joint Ventures

Shinagawa Refra manages a diverse portfolio of 38 group companies.

Key Subsidiaries:

Isolite Insulating Products Co., Ltd.: Wholly-owned subsidiary leading the Insulation Sector.
Gouda Refractories Group B.V.: 100% ownership; European stronghold for refractories.
Reframax Engenharia S.A.: Major engineering subsidiary in Brazil.
Shinagawa Refractories Australasia Pty Ltd: Key subsidiary for the Oceania market.
Shinagawa Specialty Ceramics Americas LLC (SSCA): US-based advanced ceramics unit.
Shinagawa Refractarios do Brasil Ltda (SRB): Brazilian manufacturing unit.

Physical Properties

Head Office: Tokyo (Sapia Tower).
Domestic Plants:
- Okayama Plant (Bizen): Main production hub for shaped refractories.
- Yumoto Plant: Specializes in CIP (Cold Isostatic Press) products.
- Akashi Plant: Manufacturing base.
Overseas Plants: 15 locations globally, including major facilities in China, Indonesia, and the Netherlands.
R&D Centers: Technical Research Laboratory in Bizen, Okayama.

Segment-wise Performance

Year-on-Year Movements (FY2024 vs FY2023):

Refractory Sector:
- Sales: Decreased from 98.4 billion JPY to 95.8 billion JPY.
- Operating Income: Decreased from 8.0 billion JPY to 7.6 billion JPY.
- Reason: Lower domestic crude steel production.
Insulation Sector:
- Sales: Increased from 18.5 billion JPY to 18.7 billion JPY.
- Operating Income: Decreased slightly from 3.4 billion JPY to 3.2 billion JPY.
Advanced Device & Material Sector:
- Sales: Increased from 4.2 billion JPY to 4.3 billion JPY.
- Operating Income: Decreased from 0.4 billion JPY to 0.1 billion JPY.
Engineering Sector:
- Sales: Increased from 24.5 billion JPY to 25.7 billion JPY.
- Operating Income: Decreased from 1.9 billion JPY to 1.6 billion JPY.

Founders

Katsuzo Nishimura: Founded the company in 1875. He leased part of the Gas Works to build a pilot plant for fire bricks, effectively starting the private refractory industry in Japan to support the modernization of the country during the Meiji era.

Shareholding Pattern

While specific percentages for all categories are not detailed in the summary text, the company is listed on the Tokyo Stock Exchange (Prime Market).

Promoters/Parent: No single parent company controls Shinagawa Refra; it operates as an independent entity.
Institutional Investors: Significant holdings by financial institutions and trust banks.
Public/Others: Remaining shares held by individual and foreign investors.

Investments and Capital Expenditure Plans

Strategic Investment Strategy:

Growth Investments: The company has allocated significant capital for M&A, aiming for a total of 60 billion JPY in growth investments under the 6th Mid-Term Management Plan (FY2024–FY2026), up from an initial plan of 41 billion JPY.
Capital Expenditures: 6.4 billion JPY was spent in FY2024. Investments focus on modernizing domestic plants (e.g., Okayama Plant) and expanding capacity for fine ceramics.
R&D Spending: 1.5 billion JPY in FY2024, focused on developing carbon-neutral technologies and new ceramic materials.

Future Strategy

VISION 2030 Goals:

Net Sales: 240 billion JPY.
EBITDA Margin: 16%.
Overseas Sales Ratio: 50%.
ROIC: 10%.

6th Mid-Term Management Plan (FY2024–FY2026):

Target Net Sales (FY2026): 180 billion JPY.
Target EBITDA (FY2026): 25 billion JPY.
Key Initiatives:
1. Sector Driven Business Expansion: maximizing synergies between the four sectors.
2. Production Optimization in Japan: Consolidating and modernizing facilities.
3. Accelerating Global Expansion: Leveraging Gouda and Reframax to enter new markets.
4. Promoting Sustainability Management: Aiming for 50% reduction in CO2 by FY2030.

Key Strengths

Integrated Solutions: Ability to offer materials (refractories/insulation) and services (engineering) as a single package.
Global Network: A truly international footprint with production in key regions (Europe, Americas, Asia).
Technical Expertise: 150 years of accumulated know-how in high-temperature technologies.
Diversified Portfolio: Reduced reliance on the steel industry by expanding into insulation and fine ceramics.

Key Challenges and Risks

Domestic Market Contraction: Declining crude steel production in Japan poses a volume risk for the Refractory Sector.
Raw Material Costs: Fluctuations in global raw material prices and energy costs impact profitability.
Geopolitical Risks: Operations in multiple countries expose the group to exchange rate volatility and trade policy changes.
Labor Shortage: An aging workforce in Japan affects the Engineering Sector’s ability to secure skilled labor.

Conclusion and Strategic Outlook

Shinagawa Refra Co., Ltd. enters its next 150 years with a bold transformation strategy. By rebranding and restructuring into four distinct but synergistic sectors, the company has positioned itself to pivot away from a sole reliance on the domestic steel market. The aggressive acquisitions of Gouda and Reframax demonstrate a commitment to becoming a global “Ceramics” major. With a solid financial foundation and a clear roadmap in VISION 2030, Shinagawa Refra is well-equipped to achieve its “Optimum” for stakeholders and society alike.

FAQ Section

1. What is the new name of Shinagawa Refractories? The company changed its name to Shinagawa Refra Co., Ltd. in October 2025 to reflect its broader business scope beyond refractories.

2. What are the main business sectors of Shinagawa Refra? The company operates four sectors: Refractory, Insulation, Advanced Device & Material, and Engineering.

3. What is the VISION 2030 target for Shinagawa Refra? The company aims to achieve Net Sales of 240 billion JPY and an Overseas Sales Ratio of 50% by the year 2030.

4. Does Shinagawa Refra operate outside of Japan? Yes, the company has a significant global presence with 30 overseas group companies in countries including the Netherlands, Brazil, USA, China, Indonesia, and Australia.

5. What is “GREEN REFRACTORY”? It is a product line developed by Shinagawa Refra that uses over 20% recycled raw materials to reduce CO2 emissions and environmental impact.

6. Who is the President of Shinagawa Refra? Mr. Hiroyuki Fujiwara serves as the President and CEO.

7. When was Shinagawa Refra founded? The company was founded in 1875 and celebrated its 150th anniversary in 2025.

Official Site: https://www.shinagawa.co.jp/en/

Source: Content on FirmsWorld.com is based on publicly available corporate filings, regulatory disclosures, annual reports, SEC 10-K filings, investor relations materials, and, where applicable, direct communications with the company.