Quick Facts / Company Snapshot
- Company Name: TOKAI CARBON CO., LTD.
- Established: April 1918
- Head Office: Aoyama Building, 1-2-3 Kita-Aoyama, Minato-ku, Tokyo 107-8636 Japan
- President and CEO: Hajime Nagasaka
- Total Assets (2024): 640.7 billion JPY
- Net Sales (2024): 350.1 billion JPY
- Operating Profit (2024): 19.3 billion JPY
- Net Loss (2024): 56.7 billion JPY
- Total Employees: 4,625 (Consolidated, as of December 2024)
- Overseas Sales Ratio: 79%
- U.S. Sales Ratio: 33%
- Primary Business 1: Carbon Black
- Primary Business 2: Smelting and Lining
- Primary Business 3: Fine Carbon
- Primary Business 4: Graphite Electrodes
- Primary Business 5: Industrial Furnaces and Related Products
- CO2 Reduction Rate: 33% reduction in 2024 versus 2018
- Dividend per Share (2024): 30 JPY/share
- Global Production Sites: 40 or more
- Capital Expenditure (2024): 56,715 million JPY
- R&D Expenses (2024): 4,334 million JPY
Company Overview
TOKAI CARBON CO., LTD. operates as a global materials manufacturer with over a century of deep-rooted experience in the industry. The company empowers diverse industries worldwide by delivering high-quality graphite and advanced carbon materials. The company is deeply committed to enriching the world through advanced materials and solutions, serving as an indispensable backbone for global infrastructure.
- Global infrastructure support: Tokai Carbon’s materials are critical for steel recycling, tire manufacturing, and semiconductor production.
- Extensive manufacturing footprint: The organization operates more than 40 global production sites.
- Strong philosophy: The corporate philosophy is built around “Ties of Reliability,” emphasizing integrity and long-term relationships.
By navigating a rapidly changing market environment, the company has positioned itself to address fundamental structural reforms to realize its long-term vision. The business portfolio is heavily weighted towards international operations, with 79% of its sales generated overseas. Tokai Carbon continues to pursue a local production for local consumption model, effectively serving demand centers across the globe.
Business Segments
Tokai Carbon manages a diverse portfolio of business segments, strategically allocating capital to maximize economic profit. The segments are listed below, ordered by their revenue contribution in 2024.
Carbon Black
Carbon Black is the company’s largest and core business segment, generating 156,793 million JPY in 2024. This segment accounted for 44.8% of the company’s total net sales of 350,114 million JPY. Operating profit for the segment was 21,706 million JPY.
- Tire industry dominance: Approximately 78% of the segment’s application breakdown is dedicated to tires.
- Industrial applications: 21% is used for industrial rubber products, including automotive engine components.
- Specialty pigments: 1% is used for pigments in inkjet printers and other specialty applications.
Carbon black is a carbon particulate material measured in nanometers. It is primarily utilized as a rubber reinforcing agent, making up nearly 20-30% of the weight of a tire, giving it a black color and maintaining its strength. The company possesses a strong competitive advantage through its technology to effectively exploit various types of oils as raw materials and its balanced footprint of production facilities across major demand areas.
Smelting and Lining
The Smelting and Lining segment generated 64,512 million JPY in 2024, representing 18.4% of total net sales. The segment faced significant challenges in 2024, recording an operating loss of 13,701 million JPY.
- Cathode blocks: Accounting for 71% of the segment’s product breakdown, these are laid at the bottom of electrolytic furnaces for primary aluminum production.
- Furnace lining: Representing 13% of the segment, these blocks are used as refractory material in the lining of blast furnaces.
- Carbon electrodes: Also representing 13% of the segment, these are used as electrical current conductors in submerged arc furnaces.
The segment operates four production sites in Europe. The business experienced a rapid decrease in earnings due to surging energy and raw material costs in Europe, compounded by declining demand and aggressive competition. Consequently, Tokai Carbon recorded an impairment of goodwill and other intangible fixed assets for this segment in 2024.
Fine Carbon
The Fine Carbon segment is positioned as a growth business, generating 53,890 million JPY in 2024, which equates to 15.4% of total net sales. Operating profit for the segment stood at 12,437 million JPY.
- Semiconductor dependence: 79% of the application breakdown is allocated to the semiconductor industry.
- General industry: 20% of sales serve general industrial applications.
- Solar power: 1% of the segment’s products are used for photovoltaic (solar power generation) applications.
Fine carbon encompasses specialty carbon, graphite materials, and processed products tailored for semiconductor manufacturing equipment. The company holds the world’s largest production capacity for SiC coated products and Solid SiC products. Despite a slowdown in the EV market impacting power semiconductor manufacturers, the memory semiconductor market showed gradual recovery in 2024.
Graphite Electrodes
The Graphite Electrodes segment generated 48,818 million JPY in 2024, representing 13.9% of total net sales. The segment recorded an operating loss of 3,529 million JPY in 2024.
- Essential for steel recycling: Graphite electrodes are used as conductors in electric arc furnaces (EAFs) to melt steel scrap.
- Extreme conditions: The electrodes must withstand furnace temperatures of approximately 1,600°C and tip temperatures exceeding 3,000°C.
- Consumption rate: About 1.7 kg of graphite electrode is consumed to produce one ton of steel.
The business environment was highly challenging in 2024 due to weak supply and demand in Japan and Europe, alongside aggressive exports of overproduced Chinese graphite electrodes. To restore profitability, the company initiated fundamental structural reforms, deciding to consolidate domestic production into a single site in Japan and to divest its manufacturing site in Germany.
Industrial Furnaces and Related Products
This segment generated 16,291 million JPY in 2024, accounting for 4.6% of total net sales. The segment achieved an operating profit of 3,304 million JPY.
- Core offerings: The subsidiary TKK designs, manufactures, and sells custom-made pusher-type and roller hearth-type heat treatment furnaces.
- Target markets: Primarily used for treating lithium-ion battery materials and electronic components like multi-layer ceramic capacitors (MLCCs).
- Heating elements: The segment also produces silicon carbide (SiC) EREMA heating elements used in float glass manufacturing.
TKK commands roughly 50% of the global market for heat treatment furnaces for MLCCs. In 2024, the MLCC industry experienced inventory adjustments due to decreased smartphone demand, and the slowdown in EV market growth delayed some lithium-ion battery material projects.
Others (Friction Materials, Anode Materials)
The remaining operations, including Friction Materials and Anode Materials, generated 9,807 million JPY in 2024, making up the remaining 2.8% of net sales. Operating profit for this combined category was 403 million JPY.
History and Evolution
Tokai Carbon boasts a history spanning over a century, continuously evolving its value creation alongside changing societal needs. The company’s journey is a testament to its philosophy of “Ties of Reliability” and its commitment to contributing to Japan’s industrialization and global infrastructure development.
- 1918: The company was founded in April to achieve “self-sufficiency in quality electrodes” for electric arc furnace steel making, utilizing excessively available hydroelectric power.
- 1934: Tokai Carbon successfully manufactured the world’s largest 18-inch diameter electrode.
- 1955: The company’s export ratio began to climb significantly, driven by increased overseas demand for graphite electrodes.
- 1987: Established a local subsidiary, TOKAI CARBON AMERICA, in New York.
- 1996: The Fine Carbon business initiated global market expansion through processing and sales facilities in Europe, the U.S., and Asia.
- 2017-2018: Executed five M&A deals totaling approximately 180 billion JPY, significantly increasing the overseas sales ratio to roughly 80%. Acquisitions included manufacturing sites in the United States for Graphite Electrodes and Carbon Black.
- 2024: Announced “Vision 2030,” articulating long-term aspirations and shifting from rolling three-year plans to a longer-term strategic focus.
Products and Services
Tokai Carbon’s product portfolio is highly specialized, catering to critical industrial applications. The products are intrinsic to the segments discussed above.
Carbon Black Products
Carbon Black products form the largest revenue stream (156,793 million JPY, 44.8% of sales).
- Tire Grade Carbon Black: Used to enhance the strength and durability of automotive tires.
- Industrial Rubber Grade: Serves as a reinforcing agent in rubber components around automotive engines and other industrial products.
- Pigments: High-performance grades used in plastics, electric wire sheathing, and inkjet printers.
Smelting and Lining Products
Generating 64,512 million JPY (18.4% of sales).
- Cathode Blocks: Essential for the primary aluminum production process, laid at the bottom of electrolytic furnaces.
- Furnace Linings: Used as a refractory material in sections of blast furnaces exposed to high temperature loads.
- Carbon Electrodes: Electrical current conductors utilized in submerged arc furnaces for smelting silicon, ferroalloys, copper, and lead.
Fine Carbon Products
Generating 53,890 million JPY (15.4% of sales).
- Solid SiC Focus Rings: Used in the upstream plasma etching process for memory semiconductor manufacturing.
- SiC Coated Products: Processed graphite products coated with ultra-high-purity silicon carbide.
- Polycrystalline SiC Wafers: Serve as supporting platforms for bonded SiC wafers in power semiconductors.
Graphite Electrodes
Generating 48,818 million JPY (13.9% of sales).
- Super-size Graphite Electrodes: High-quality, large-diameter electrodes essential for melting steel scrap via arc discharge in electric arc furnaces.
Industrial Furnaces
Generating 16,291 million JPY (4.6% of sales).
- Heat Treatment Furnaces: Custom-made pusher-type and roller hearth-type furnaces for treating lithium-ion battery materials and MLCCs.
Brand Portfolio
Tokai Carbon manages several proprietary brands and trademarked technologies that enhance its market position.
EREMA
- Profile: EREMA represents the company’s silicon carbide (SiC) heating elements. This energy-saving, clean, high-temperature ceramic heater is heavily utilized in float glass manufacturing and industrial heat treatment furnaces.
- Strength: The brand boasts overwhelming quality superiority and provides synergy for new industrial furnace design capabilities.
Aqua Black
- Profile: Aqua Black is a specialized carbon black product developed explicitly for use as a pigment in inkjet printers.
eCB™ (eco Carbon Black)
- Profile: Currently applying for trademark registration, eCB refers to carbon black regenerated through the secondary processing of recovered Carbon Black (rCB) from used tires.
- Strength: It aims to achieve rubber reinforcement properties equivalent to virgin carbon black, addressing the historical challenge of low reinforcement properties in standard rCB.
RuC® (Ready-to-use Cathode)
- Profile: RuC is a next-generation, environmentally friendly cathode block.
- Strength: It contributes to reducing the environmental impact of aluminum production by lowering power consumption and extending the lifespan of the cathode block, thereby reducing replacement frequency.
Geographical Presence
Tokai Carbon is a globally integrated enterprise, operating a local production for local consumption model to effectively serve international demand. The company oversees more than 40 manufacturing sites globally.
- North America (United States & Canada): * The U.S. market is highly significant, accounting for 33% of the company’s total sales.
- Tokai Carbon operates major Carbon Black production and sales bases in the U.S., acquired in 2018, which have grown to become the company’s largest core business by sales volume.
- The company also maintains a manufacturing site for specialty carbon black made from natural gas in Canada.
- To support the Fine Carbon business, the company consolidated U.S. machining and processing companies to strengthen its sales structure in the semiconductor and aerospace sectors.
- Europe: * The Smelting and Lining business is headquartered in Germany, with two plants each in Poland and France.
- Europe has presented a challenging environment due to the Russia-Ukraine war, surging energy costs, and severe inflation.
- The company operates TOKAI ERFTCARBON GmbH, a German graphite electrode manufacturer acquired in 2005, which is slated for transfer to a German investment fund.
- Asia (Japan, China, Thailand, Korea): * Japan: The company’s headquarters are in Tokyo, with numerous domestic laboratories and plants (e.g., Fuji, Shonan, Chita, Hofu). Fine Carbon graphite materials are produced at the Kumamoto Prefecture plant. The company consolidated its domestic graphite electrode production into the Hofu Plant, ceasing operations at the historic Shiga Plant.
- Thailand: The company is executing a major plant relocation project for Carbon Black in Thailand, with the new state-of-the-art facility scheduled to begin operating in mid-2025 to secure higher productivity and environmental compliance.
- China & Korea: Operations include Tokai Carbon (Suzhou) Co., Ltd., Tokai Carbon (Dalian) Co., Ltd., and TOKAI CARBON KOREA CO., LTD.. The memory semiconductor business in South Korea experienced sluggishness but showed gradual recovery in 2024.
Financial Performance Analysis
Tokai Carbon faced a drastically changing market environment in 2024, leading to a challenging financial year. While the Carbon Black and Fine Carbon businesses showed acceptable results, substantial losses in the Graphite Electrodes and Smelting and Lining segments resulted in a consolidated net loss.
- EBITDA: Company-wide EBITDA for 2024 stood at 61,120 million JPY, representing an EBITDA margin of 17.5%. Carbon Black and Fine Carbon accounted for 85% of the total company EBITDA.
- ROIC: The company utilizes adjusted ROIC that takes into account goodwill and goodwill amortization. The FY2024 company-wide average economic spread (adjusted ROIC – WACC) was 3%.
Profit and Loss Analysis
The following table presents the multi-year trend for the Statements of Income (Consolidated).
| Metric (million JPY) | 2022 | 2023 | 2024 |
| Net sales | 340,371 | 363,946 | 350,114 |
| Gross profit | 94,052 | 98,727 | 80,635 |
| Selling, general and administrative expenses | 53,463 | 59,998 | 61,248 |
| Operating profit | 40,588 | 38,728 | 19,386 |
| Ordinary income | 42,521 | 41,607 | 22,579 |
| Net income before income taxes | 42,111 | 41,998 | (47,645) |
| Income taxes | 14,782 | 13,243 | 5,304 |
| Net income | 27,329 | 28,754 | (52,949) |
| EBITDA | 75,572 | 75,949 | 61,120 |
Sales ratios:
- Gross profit ratio: Declined from 27.1% in 2023 to 23.0% in 2024.
- Operating income (ROS): Declined from 10.6% in 2023 to 5.5% in 2024.
- EBITDA margin: Declined from 20.9% in 2023 to 17.5% in 2024.
Balance Sheet Analysis
The following table presents the multi-year trend for the Balance Sheet (Consolidated).
| Metric (million JPY) | 2022 | 2023 | 2024 |
| Total current assets | 246,691 | 262,890 | 270,363 |
| On-hand liquidity | 70,909 | 77,465 | 92,207 |
| Inventory | 101,330 | 109,332 | 100,740 |
| Total fixed assets | 329,773 | 377,114 | 370,390 |
| Tangible fixed assets | 181,948 | 223,804 | 264,582 |
| Intangible fixed assets | 118,839 | 117,051 | 66,341 |
| Total assets | 576,465 | 640,005 | 640,753 |
| Total current liabilities | 146,696 | 136,971 | 147,729 |
| Total long-term liabilities | 128,900 | 142,930 | 167,865 |
| Total liabilities | 275,596 | 279,902 | 315,595 |
| Shareholders’ equity | 218,761 | 237,220 | 170,469 |
| Total net assets | 300,868 | 360,103 | 325,158 |
- Intangible assets: Experienced a sharp drop in 2024 down to 66,341 million JPY due to the full impairment of intangible fixed assets, such as goodwill, primarily within the Smelting and Lining business.
- Capital-to-asset ratio: Declined to 45.2% in 2024 from 50.7% in 2023.
- Debt position: The company aims for an adjusted net D/E ratio of approximately 0.35 times to ensure sufficient financial soundness (A rating or higher) and capital efficiency.
Cash Flow Analysis
The following table presents the multi-year trend for Cash Flows (Consolidated).
| Metric (million JPY) | 2022 | 2023 | 2024 |
| Operating cash flows | 41,205 | 62,074 | 64,471 |
| Investment cash flows | 49,900 | 47,632 | (70,777) |
| Free cash flows | (8,695) | 14,442 | (6,306) |
| Financing cash flows | 10,629 | (14,512) | 9,410 |
- Capital expenditure: 56,715 million JPY was deployed in 2024.
- Dividends: Total dividends paid in 2024 were 7.0 billion JPY. The dividend per share was maintained at 30 JPY.
- Bond issuance: 65.0 billion JPY in bonds were issued in 2024.
Board of Directors and Leadership Team
The Board of Directors is composed of 8 directors (including 2 External Directors) and the Audit & Supervisory Board comprises 4 members (including 2 External members).
- Hajime Nagasaka: President and Chief Executive Officer. He joined the company in 1972 and has held the CEO position since 2015. He chairs the Board of Directors, Sustainability Committee, and Carbon Neutral Committee.
- Masafumi Tsuji: Member of the Board, Managing Executive Officer.
- Katsuyuki Yamaguchi: Member of the Board, Executive Officer. He serves as General Manager of the Smelting and Lining Division.
- Shunji Yamamoto: Member of the Board, Managing Executive Officer. He serves as General Manager of the Graphite Electrodes Division.
- Tatsuhiko Yamazaki: Member of the Board, Executive Officer. General Manager of the R&D Strategy Division.
- Takashi Masaki: Member of the Board, Executive Officer. Director and Managing Director of THAI TOKAI CARBON PRODUCT CO., LTD..
- Nobumitsu Kambayashi: External Director (independent officer). Appointed in 2016, he holds extensive experience from Kawasaki Heavy Industries, Ltd.. He chairs the Nomination Committee and the Remuneration Committee.
- Mayumi Asada: External Director (independent officer). Appointed in 2021, she is a registered attorney at law and holds a Doctor’s degree in Medicine.
- Audit & Supervisory Board: Yuji Serizawa (Full-Time), Kanji Sugihara (Full-Time), Kaoru Ogashiwa (External, independent), Yoshinori Matsushima (External, independent).
Subsidiaries, Associates, Joint Ventures
Tokai Carbon operates a vast network of group companies globally.
- TOKAI CARBON AMERICA / Tokai Carbon U.S.A., Inc.: Manages U.S. operations, handling significant carbon black and graphite electrode sales.
- Cancarb Limited: Located in Canada, this subsidiary specializes in carbon black made from natural gas.
- TOKAI ERFTCARBON GmbH: A German graphite electrode manufacturer acquired in 2005.
- THAI TOKAI CARBON PRODUCT CO., LTD.: Oversees operations in Thailand, currently executing a 35 billion JPY plant relocation project.
- Tokai COBEX Entities: Includes Tokai COBEX GmbH, Tokai COBEX Savoie SAS, and Tokai COBEX Polska sp. z o.o., instrumental in the European Smelting and Lining operations.
- Tokai Konetsu Kogyo Co., Ltd.: Key domestic subsidiary deeply involved in industrial furnaces and EREMA heating elements.
- KBR, Inc. & MWI, Inc.: Consolidated in December 2024 to strengthen processing and sales structures.
Physical Properties (Offices, Plants, Factories, etc.)
The Tokai Carbon Group maintains a robust physical infrastructure with over 40 manufacturing sites.
- Head Office: Aoyama Building, Minato-ku, Tokyo, Japan.
- Japanese Plants & Laboratories: Fuji Research Laboratory, Shonan Plant, Chigasaki Laboratory, Ishinomaki Plant, Chita Plant, Chita Laboratory, Hofu Plant, Kyushu-Wakamatsu Plant, Tanoura Plant, Tanoura Laboratory. The historic Shiga Plant ceased operations to consolidate domestic graphite electrode production into the Hofu Plant.
- Overseas Properties: Four production sites in Europe for Smelting and Lining (two in Poland, two in France). Facilities in the U.S., Canada, China, Korea, and Thailand.
Segment-wise Performance
The operational and financial performance by business segment reveals distinct YoY movements (2023 to 2024).
| Segment | 2023 Net Sales (M JPY) | 2024 Net Sales (M JPY) | 2023 Operating Profit (M JPY) | 2024 Operating Profit (M JPY) |
| Carbon Black | 148,423 | 156,793 | 21,303 | 21,706 |
| Smelting and Lining | 82,820 | 64,512 | 2,305 | (13,701) |
| Fine Carbon | 45,319 | 53,890 | 10,617 | 12,437 |
| Graphite Electrodes | 60,235 | 48,818 | 752 | (3,529) |
| Industrial Furnaces | 15,614 | 16,291 | 3,860 | 3,304 |
| Others | 11,532 | 9,807 | 1,299 | 403 |
- Carbon Black grew its sales from 148,423 to 156,793 million JPY, maintaining strong profitability.
- Smelting and Lining faced severe contraction, with sales dropping from 82,820 to 64,512 million JPY and profits swinging to a massive 13,701 million JPY loss.
- Fine Carbon experienced solid growth, increasing sales from 45,319 to 53,890 million JPY.
- Graphite Electrodes sales contracted from 60,235 to 48,818 million JPY, leading to an operating loss.
Founders
Tokai Carbon was founded in April 1918. While individual founders are not explicitly detailed, the company’s inception was driven by a national mission to achieve self-sufficiency in quality electrodes for electric arc furnace steelmaking, capitalizing on the excessively available hydroelectric power of the era.
Shareholding Pattern
The company’s total number of issued shares is 598,764,000, with 130,148 total shareholders. The shareholding ratio (excluding treasury stock) is distributed as follows:
- Financial Institutions: 39% (83,567 thousand shares).
- Individuals/Others: 35% (73,767 thousand shares).
- Foreign Corporations, etc.: 17% (36,418 thousand shares).
- Japanese Corporations: 6% (12,012 thousand shares).
- Financial Instruments Business Operators: 4% (7,707 thousand shares).
Major Institutional Shareholders:
- The Master Trust Bank of Japan, Ltd. (Trust Account): 19.82%.
- Custody Bank of Japan, Ltd. (Trust Account): 7.55%.
- MUFG Bank, Ltd.: 2.73%.
Parent
Tokai Carbon Co., Ltd. serves as the ultimate parent company of the Tokai Carbon Group. It manages a vast network of global subsidiaries without a higher-level parent entity directing its operations.
Investments and Capital Expenditure Plans
Tokai Carbon executes capital expenditure planning based on its long-term vision, business portfolio management, and sustainability objectives. In 2024, capital expenditure totaled 56,715 million JPY, while R&D expenses were 4,334 million JPY.
- Environmental Capital Investments: From 2021 to 2024, the company executed roughly 30 billion JPY in major environmental equipment CAPEX at its U.S. Carbon Black facilities to significantly lower NOx and SOx emissions.
- Thai Plant Relocation: An approximate 35 billion JPY investment is underway to relocate the Thai Carbon Black plant, introducing state-of-the-art facilities to establish a sustainable supply system by 2025.
- Growth Investments: The company is actively implementing capacity expansion projects in the high-ROIC Fine Carbon and Industrial Furnaces businesses, anticipating growth in the semiconductor and electronic components sectors.
Future Strategy
Tokai Carbon’s long-term strategy is guided by “Vision 2030,” which envisions the company as an entity that supports global infrastructure long-term while contributing to a sustainable society. The financial targets for 2030 include:
- Net sales: 500 billion JPY
- EBITDA margin: 20%
- ROIC (adjusted): 12%
The strategy outlines three core initiatives:
- Drastic structural reforms: Short-term, intensive measures to address worsening profitability in the Graphite Electrodes and Smelting and Lining businesses, ensuring a rapid return to profitability.
- Commitment to growth markets: Medium-term measures focusing proactive management resource allocation toward Carbon Black, Fine Carbon, and Industrial Furnaces.
- Sustainable value creation: Long-term measures to offer solutions that contribute to a sustainable society, including realizing a circular economy and creating new business areas.
Key Strengths
Tokai Carbon leverages its century-long history and robust management capital to sustain a competitive edge.
- Technology & Quality: Accumulation of high-temperature heat treatment technology and fine particle control technology. The company has the capacity to produce some of the world’s largest high-quality graphite electrodes and possesses the world’s largest production capacity for SiC coated products.
- Global Footprint: Production sites located in major demand centers ensure a local production for local consumption model, mitigating supply chain risks and serving global clients effectively.
- Co-creation & Reliability: Established “Ties of Reliability” with raw material suppliers and top-tier customers, including major tire manufacturers and global semiconductor companies, guaranteeing stable supply and innovative joint development.
Key Challenges and Risks
The company transparently addresses several severe challenges and risks within its operational landscape.
- Geopolitical Risks: The Russia-Ukraine war and rising economic nationalism have caused supply chain interruptions, surged energy costs, and eroded the cost advantages of the European-based Smelting and Lining business.
- Competitive Pressures: The rise of new powers, particularly excess production capacity and quality improvements from Chinese and Indian competitors, has caused a global market downturn for Graphite Electrodes.
- Market Fluctuations: Slowdowns in the EV market directly impact demand for power semiconductor materials and lithium-ion battery furnace equipment.
- Environmental & Resource Risks: The depletion of raw materials (like feedstock oil) and the intensification of natural disasters necessitate rapid reforms across manufacturing processes and the supply chain.
Conclusion and Strategic Outlook
TOKAI CARBON CO., LTD. stands at a critical transition period. The fiscal year 2024 was marked by significant financial losses necessitated by urgent restructuring, particularly within the Smelting and Lining and Graphite Electrodes segments. However, the resilient performance of the Carbon Black and Fine Carbon divisions demonstrates the underlying strength of its portfolio.
Guided by Vision 2030, the company is not merely seeking a return to profitability but is fundamentally realigning its operations to serve future-oriented, sustainable industries. By executing decisive structural reforms, accelerating growth investments in semiconductor and electronic component markets, and pioneering circular economy solutions like eCB, Tokai Carbon is forging a robust path toward achieving its ambitious 500 billion JPY revenue target by 2030. The commitment to its core philosophy, “Ties of Reliability,” will remain the driving force as it navigates global uncertainties and secures long-term corporate value.
FAQ Section
What are the main business segments of Tokai Carbon? Tokai Carbon operates in several key segments: Carbon Black, Smelting and Lining, Fine Carbon, Graphite Electrodes, Industrial Furnaces and Related Products, Friction Materials, and Anode Materials.
How much revenue did Tokai Carbon generate in 2024? The company generated a consolidated net sales figure of 350.1 billion JPY in the fiscal year ended December 2024.
What are the financial goals for Vision 2030? Under Vision 2030, Tokai Carbon aims to achieve net sales of 500 billion JPY, an EBITDA margin of 20%, and an adjusted ROIC of 12%.
Why did Tokai Carbon report a net loss in 2024? The company recorded a net loss of 56.7 billion JPY in 2024 primarily due to substantial losses in the Graphite Electrodes and Smelting and Lining segments, which necessitated structural reforms and the full impairment of intangible fixed assets such as goodwill.
What is the company’s approach to dividend payouts? Tokai Carbon aims for stable and consistent dividends, targeting a consolidated dividend payout ratio of 30%. In 2024, the dividend per share was 30 JPY.
What is eCB™? Currently applying for trademark registration, eCB stands for eco Carbon Black. It refers to carbon black regenerated through the secondary processing of recovered Carbon Black (rCB) from used tires, aiming for reinforcement properties equivalent to virgin carbon black.
How is Tokai Carbon restructuring its Graphite Electrodes business? The company is implementing drastic rationalization, including consolidating domestic production into the Hofu Plant by closing the Shiga Plant, and transferring its German subsidiary to an investment fund.
What percentage of the company’s sales are generated overseas? Approximately 79% of Tokai Carbon’s consolidated sales are generated in international markets.
Official Site: https://www.tokaicarbon.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.
