Krosaki Harima Corporation (TSE: 5352): Comprehensive Company Profile
Source: KROSAKI HARIMA CORPORATION Annual Securities Report (“Yukashoken Hokokusho”) The 134th Fiscal Year (from April 1, 2024, to March 31, 2025).
Quick Facts / Company Snapshot
| Metric | Details |
| Official Company Name | KROSAKI HARIMA CORPORATION (KROSAKI HARIMA Kabushiki Kaisha) |
| Stock Exchange Listings | Prime Market of the Tokyo Stock Exchange, The Fukuoka Stock Exchange |
| Reporting Period | 134th Fiscal Year (April 1, 2024 to March 31, 2025) |
| Headquarters | 1-1, Higashihamamachi, Yahatanishi-ku, Kitakyushu City, Fukuoka, Japan |
| Representative Director, President | Kazuhiro Egawa |
| Total Consolidated Net Sales | ¥177,921 million |
| Consolidated Ordinary Profit | ¥15,316 million |
| Profit Attributable to Owners of Parent | ¥12,535 million |
| Total Assets | ¥187,058 million |
| Total Net Assets | ¥101,640 million |
| Equity Ratio | 50.8% |
| Return on Equity (ROE) | 13.8% |
| Net Assets per Share | ¥2,820.55 |
| Basic Earnings per Share | ¥372.23 |
| Price Earnings Ratio (Times) | 6.9 |
| Total Number of Issued Shares | 36,458,112 Shares |
| Dividends per Share (Annual) | ¥105.00 |
| Full-Time Employees | 5,013 Persons |
| Parent Company | NIPPON STEEL CORPORATION |
| Accounting Auditor | KPMG AZSA LLC |
Source: KROSAKI HARIMA CORPORATION Annual Securities Report The 134th Fiscal Year.
Company Overview
Krosaki Harima Corporation operates as a global industrial leader specializing in the manufacture and sales of high-performance refractories and ceramics. Positioned as a critical supplier to the global steel industry, the enterprise provides specialized materials essential for extreme-temperature industrial processes. The organization operates under a guiding corporate philosophy aimed at playing an important role in global industrial development by providing high-value products and technologies for the worldwide ceramics industry through continuous innovation.
- Core Industrial Function: Supplying heat-resistant materials that allow steelmakers and manufacturing plants to operate industrial furnaces safely and efficiently.
- Global Architecture: Managing a vast network of consolidated subsidiaries across Japan, India, China, Europe, Singapore, and the United States to ensure localized production and localized sales strategies.
The entity functions as a vital subsidiary of NIPPON STEEL CORPORATION, tightly integrating its supply chain and technological development with one of the world’s largest steel producers. Despite facing a challenging domestic environment characterized by declining crude steel output in Japan, the management team has successfully pivoted toward international growth markets, most notably expanding operational footprints and sales volumes within the rapidly industrializing Indian market.
- Strategic Evolution: Shifting from a purely domestic manufacturing base to an integrated global solutions provider capable of delivering both specialized refractory products and comprehensive furnace construction services.
- Sustainability Pivot: Launching specialized product lines engineered to reduce energy consumption and minimize carbon emissions for end-users, reflecting a deep operational commitment to the transition toward carbon neutrality.
Through the implementation of its 2025 Revised Management Plan, the corporation focuses on transforming into a world-class comprehensive ceramics company. This structural mandate requires aggressive capital allocation toward high-growth segments, rigorous yield improvements, and the proactive transfer of escalating raw material costs into final selling prices, ensuring sustained profitability against macroeconomic headwinds.
Business Segments
| Business Segment | Net Sales (Millions of yen) | % of Total Revenue (Calculated by FirmsWorld) | Segment Profit (Millions of yen) |
| Refractories | ¥148,538 | 83.49% | ¥11,433 |
| Furnace | ¥19,728 | 11.09% | ¥1,518 |
| Ceramics | ¥7,809 | 4.39% | ¥482 |
| Others (Lime for steelworks) | ¥1,107 | 0.62% | ¥55 |
| Real Estate | ¥737 | 0.41% | ¥594 |
| Total / Consolidated | ¥177,921 | 100.00% | ¥14,082 |
Source: KROSAKI HARIMA CORPORATION Annual Securities Report The 134th Fiscal Year. Note: Segment profit reflects operating profit and total segment profit includes corporate adjustments of ¥(1) million.
Refractories
The Refractories segment operates as the foundational economic engine of the corporation, engineering and supplying specialized heat-resistant materials used in various industrial furnaces. The division manages a vast global production matrix, operating manufacturing facilities not only in Japan but also across China, Spain, and India through wholly owned and majority-held subsidiaries.
- Market Dynamics: The segment absorbed the impact of reduced domestic and international crude steel output (excluding India) and a drop in one-time orders during the fiscal period.
- Strategic Countermeasures: Profitability was defended through aggressive sales expansion in the robust Indian steel market and the successful pass-through of inflated raw material costs to final selling prices.
Despite slight top-line and bottom-line contractions compared to the prior fiscal year, the division continues to drive the enterprise’s cash generation. The operational strategy centers heavily on creating highly durable, high-value-added refractories that reduce the total cost of ownership for steelmakers while supporting new, low-carbon steelmaking processes.
Furnace
The Furnace segment provides comprehensive engineering services, including the design, construction, installation, and repair of various industrial furnaces. By coupling physical refractory products with specialized installation and maintenance expertise, this division allows the corporation to capture additional value down the supply chain while deepening integration with core industrial clients.
- Revenue Acceleration: The division experienced dramatic top-line expansion during the fiscal year, driven by upward revisions in maintenance unit prices and the successful capture of large-scale construction contracts.
- Profitability Surge: Segment profit leaped significantly as the combination of volume growth and improved pricing power yielded exceptional margin expansion.
Management views this segment as a critical growth lever. Future strategic initiatives involve expanding the scope of refractories construction and maintenance work, utilizing digital technology to streamline work efficiency, and pitching integrated product-and-construction solutions to clients globally.
Ceramics
The Ceramics division diversifies the corporate portfolio away from the cyclical steel industry by manufacturing and selling fine ceramics for various modern industries, alongside landscape materials. This segment targets high-growth technological sectors, providing specialized ceramic components critical for advanced manufacturing environments.
- Demand Trough: The division experienced a temporary contraction in both sales and profits, directly attributed to a cyclical dip in orders for ceramic materials used in semiconductor manufacturing equipment.
- Secondary Impact: The segment also faced reduced demand for thermal insulation materials utilized in household fuel cell applications.
Despite near-term headwinds, the division represents a crucial pillar for long-term growth. Capital allocation strategies indicate heavy impending investments to enhance production facilities, positioning the segment to meet anticipated future demand surges from semiconductor-related clients and the broader environmental technology sector.
Others (Lime for Steelworks)
The Others segment historically encompassed the manufacturing and sales of lime products specifically engineered for steelworks applications. While the segment achieved notable year-over-year revenue and profit growth during the reporting period, strategic portfolio realignment dictated a shift in operational focus.
- Operational Cessation: The corporation officially withdrew from the lime business entirely, effective March 31, 2025.
- Strategic Rationale: This divestiture aligns with management’s objective to consolidate resources and focus strictly on high-margin core competencies in refractories, advanced ceramics, and furnace engineering.
Real Estate
The Real Estate segment acts as a stable, high-margin ancillary business, generating revenue through the rental of corporate-owned physical properties, including shops and warehouses.
- Consistent Cash Flow: The division maintained perfectly flat revenue year-over-year while managing to slightly increase segment profitability.
- Asset Utilization: This operation represents an efficient utilization of legacy corporate landholdings, specifically a shopping center constructed in Osaka prefecture, delivering steady yields with minimal operational overhead.
History and Evolution
The enterprise commands a corporate legacy spanning over a century, characterized by continuous technological adaptation, strategic mergers, and aggressive international expansion. Founded initially to support domestic industrialization, the corporation systematically grew into a multinational entity.
- October 1918: The enterprise was officially founded as KROSAKI REFRACTORIES CO., LTD., dedicated to the manufacture and sales of firebricks.
- July 1942: Executed an early domestic consolidation by merging with Oboshi Taika Renga Co., Ltd., establishing the Oboshi Plant.
- June 1944: Merged with Showa Taika Zairyo Co., Ltd., further expanding its domestic manufacturing capabilities.
As the Japanese economy accelerated post-war, the corporation recognized the necessity of securing capital markets and establishing deep industrial partnerships to fund advanced material development.
- May 1949: Successfully listed public shares on the Tokyo Stock Exchange, Inc. and Osaka Securities Exchange Co., Ltd., followed by a listing on the Fukuoka Stock Exchange in June 1949.
- June 1953: A pivotal strategic alliance was formed through capital participation from Yawata Iron & Steel Co., Ltd. (the predecessor to the modern NIPPON STEEL CORPORATION).
- April 1985: Established the Fine Ceramics Business Department, officially diversifying operations beyond traditional steel refractories into advanced technological materials.
The late 1980s and 1990s marked the corporation’s transition into a truly global operator, initiating a series of cross-border acquisitions and joint ventures to capture international market share.
- May 1986: Executed its first major European expansion by acquiring shares in the Spanish corporation ARISTEGUI MATERIAL REFRACTARIO, S. A. (currently the consolidated subsidiary KROSAKI AMR REFRACTARIOS, S. A. U.).
- March 1995: Penetrated the Chinese market by founding Wuxi Krosaki Sujia Refractories Co., Ltd. through a joint venture.
- April 2000: Completed a massive domestic consolidation by merging with Harima Ceramic Co., Ltd., officially rebranding the combined entity as Krosaki Harima Corporation.
The 21st century saw rapid acceleration in the corporation’s global subsidiary network, targeting the Americas, deeper European penetration, and the booming Indian subcontinent.
- August 2002: Founded Krosaki USA Inc. to directly service the North American industrial market.
- July 2010: Acquired shares in TATA REFRACTORIES LIMITED in India, eventually renaming it TRL KROSAKI REFRACTORIES LIMITED, securing a massive foothold in the world’s fastest-growing major steel market.
- March 2019: Nippon Steel & Sumitomo Metal Corporation (presently NIPPON STEEL CORPORATION) officially became the parent company, cementing the ultimate strategic integration of the supply chain.
Products and Services
| Product / Service Category | Revenue | % of Total Revenue |
| General Refractories | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. |
| Unshaped Refractories | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. |
| Fine Ceramics | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. |
| Furnace Engineering Services | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. |
| Thermal Insulation Materials | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. |
Source: KROSAKI HARIMA CORPORATION Annual Securities Report The 134th Fiscal Year.
General Refractories
The corporation produces a vast array of shaped refractory bricks engineered to withstand extreme thermal shock, physical impact, and chemical corrosion inside industrial furnaces. These products are heavily utilized in the production of continuous casting steel and within basic oxygen converters.
- Differentiated Engineering: The product development teams have successfully transitioned many traditionally fired bricks into non-fired variants, drastically reducing the carbon footprint associated with their production.
- Application Scope: These high-durability products are customized to match the exact atmospheric conditions of individual clients’ furnaces, maximizing operational uptime for global steel producers.
Unshaped (Monolithic) Refractories
Moving beyond traditional shaped bricks, the enterprise engineers highly advanced unshaped or monolithic refractories. These materials offer superior flexibility during installation and repair processes inside complex furnace geometries.
- Energy-Saving Formulations: Recent product iterations include “no-need-to-dry” and “non-preheating” monolithic materials, which allow clients to bypass energy-intensive curing phases.
- Sustainable Integration: The formulation processes for these products increasingly rely on recycled raw materials, supporting the corporation’s transition toward a circular economic model.
Fine Ceramics and Thermal Insulation Materials
The organization engineers advanced ceramic components critical for high-tech applications far removed from heavy steel manufacturing. This includes highly specialized insulation materials utilized in household fuel cells (Ene-Farm) and lightweight setters designed for high-speed condenser firing furnaces used in capacitor manufacturing.
- Semiconductor Integration: Engineering teams are currently having specialized ceramic components evaluated for mounting onto mass-produced, energy-saving semiconductor manufacturing equipment.
- Carbon Mitigation: The deployment of these high-performance insulation materials directly reduces energy consumption at the client level, preventing tens of thousands of tons of secondary CO2 emissions annually.
Furnace Engineering Services
The enterprise provides a complete suite of physical engineering services encompassing the design, structural construction, internal installation, and ongoing maintenance of diverse industrial furnaces.
- Operational Synergy: By deploying proprietary refractories alongside expert construction teams, the corporation guarantees optimal thermal efficiency and prolonged structural integrity for clients’ facilities.
- Methodological Innovation: The engineering division actively expands the application of proprietary construction methodologies (like the KSB construction method) to drastically increase energy efficiency within reheating furnaces.
Brand Portfolio
| Brand Name | Revenue | % of Total Revenue |
| K-GenesisX™ | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. |
| TOUGHMAX™ | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. |
| Dry-Free™ | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. |
| EVERCLEAN™ | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. |
| REX-ROBO™ | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. |
| NEXCERA™ | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. |
| KROTECT™ | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. |
| PLATECT™ | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. |
Source: KROSAKI HARIMA CORPORATION Annual Securities Report The 134th Fiscal Year.
K-GenesisX™
In November 2024, the corporation officially launched K-GenesisX™ as a comprehensive umbrella brand encompassing all environmental products, solutions, and green marketing strategies across the global group.
- Strategic Intent: The brand was created to visibly emphasize the ESG considerations embedded within the product portfolio and to clearly articulate the provision of comprehensive solutions tailored to stakeholders’ environmental challenges.
- Market Positioning: By grouping low-carbon, high-efficiency technologies under a single recognizable banner, the enterprise seeks to differentiate itself from traditional commoditized refractory suppliers.
TOUGHMAX™
Rolled out as a heavily promoted individual strategic brand, TOUGHMAX™ represents a breakthrough in refractory engineering. It is specifically a high-toughness MgO-C (Magnesia-Carbon) brick product engineered for converter charging pads.
- Performance Metrics: The material boasts massively enhanced durability against both violent thermal shocks and the extreme physical impacts inherent in loading scrap metal into basic oxygen furnaces.
- Operational Value: By significantly extending the lifespan of the charging pad, TOUGHMAX™ reduces the frequency of furnace shutdowns, directly driving operational efficiency for the end-user.
KROTECT™
Operating primarily within the Ceramics business segment, KROTECT™ is the enterprise’s flagship brand for high-performance thermal insulation materials.
- Cross-Industry Application: These materials are critical for energy-saving applications across electronics, medical equipment, aerospace, and advanced power generation systems.
- Capacity Expansion: Recognizing intense future demand driven by global decarbonization efforts, management initiated production of KROTECT™ in the first half of 2025 to scale market penetration.
Geographical Presence
| Geography | Revenue (Millions of yen) | % of Total Revenue (Calculated by FirmsWorld) |
| Japan | ¥97,743 | 54.94% |
| India | ¥42,062 | 23.64% |
| Europe | ¥18,077 | 10.16% |
| Other | ¥11,547 | 6.49% |
| Asia (excluding Japan & India) | ¥8,489 | 4.77% |
| Total | ¥177,921 | 100.00% |
Source: KROSAKI HARIMA CORPORATION Annual Securities Report The 134th Fiscal Year.
Japan
The domestic market remains the largest geographic revenue contributor, anchoring the corporation’s financial stability and housing its primary research and development infrastructure. The physical footprint includes the massive Yahata Plant and Head Office in Kitakyushu, alongside highly specialized monolithic and ceramics plants across Chiba, Hyogo, and Okayama.
- Macro Headwinds: Operations faced substantial pressure from a shrinking domestic construction and manufacturing sector, leading to a 4.5% year-over-year contraction in Japanese crude steel output.
- Defensive Resilience: Despite volume drops, the region managed a 1.5% year-over-year revenue increase, achieved strictly through aggressive price negotiations to pass on inflated supply chain and labor costs.
India
India represents the most critical growth vector for the entire multinational enterprise. Operations are anchored by the highly successful consolidated subsidiary, TRL KROSAKI REFRACTORIES LIMITED, located in Odisha.
- Explosive Growth: Driven by a robust 6.3% nationwide increase in Indian crude steel output, regional sales surged by 9.1% year-over-year.
- Capital Deployment: Management is actively executing aggressive capital investments in the region, including the planned construction of an entirely new manufacturing plant in the western state of Gujarat to capture exploding localized demand.
Europe
The European operational theater focuses heavily on high-margin, specialized applications and is managed through subsidiaries located in Spain (KROSAKI AMR REFRACTARIOS, S.A.U. and REFRACTARIA, S.A.U.) and the Netherlands (Krosakiharima Europe B.V.).
- Revenue Contraction: The region experienced a 12.6% year-over-year decline in top-line revenue, reflecting broader industrial stagnation across the European continent.
- Strategic Pivot: To combat regional maturity, management is actively increasing synergies among its three European subsidiaries to cross-sell into the cement and non-ferrous fields, while leveraging the European base to export into the Middle East and Africa.
Asia (excluding Japan & India)
The broader Asian market operations focus heavily on the massive Chinese industrial base, managed through a regional hub in Shanghai and manufacturing facilities in Jiangsu and Liaoning provinces.
- Market Disruption: The region suffered a steep 12.7% revenue contraction during the fiscal year. Operations were severely impacted by China’s aggressive expansion of steel exports at disruptive prices, which destabilized regional supply and demand dynamics.
- Future Mitigation: To bypass localized economic volatility and capture emerging growth, management is establishing a new local company, Krosaki Vietnam CO., LTD., to expand sales and services deep into Southeast Asia.
Profit and Loss
| Financial Metric | Amount (Millions of yen) |
| Net Sales | ¥177,921 |
| Cost of Sales | ¥142,451 |
| Gross Profit | ¥35,470 |
| Selling, General and Administrative Expenses | ¥21,388 |
| Operating Profit | ¥14,082 |
| Total Non-operating Income | ¥2,286 |
| Total Non-operating Expenses | ¥1,052 |
| Ordinary Profit | ¥15,316 |
| Total Extraordinary Income | ¥3,703 |
| Total Extraordinary Losses | ¥101 |
| Profit Before Income Taxes | ¥18,917 |
| Total Income Taxes | ¥4,934 |
| Profit Attributable to Non-controlling Interests | ¥1,447 |
| Profit Attributable to Owners of Parent | ¥12,535 |
Source: KROSAKI HARIMA CORPORATION Annual Securities Report The 134th Fiscal Year.
The consolidated income statement reveals an enterprise successfully maintaining profitability amidst a complex, highly volatile global macroeconomic environment. Top-line revenue eked out a 0.5% gain to reach ¥177,921 million, demonstrating management’s capability to offset plummeting domestic steel production volumes with rigid pricing discipline and international market capture.
- Margin Contraction: Operating profit declined by 4.2% year-over-year to ¥14,082 million. This compression was driven directly by the combination of reduced high-margin consumable refractory sales in Japan and a temporary trough in orders within the Ceramics segment.
- Expense Pressures: SG&A expenses swelled by 3.4% to ¥21,388 million, heavily influenced by global inflationary pressures on logistics, shipment, and haulage expenses, alongside necessary increases in personnel compensation to retain talent.
Despite the operational margin squeeze, the corporation delivered a highly robust Ordinary Profit of ¥15,316 million. While representing a 6.5% drop from the prior year’s record highs (due primarily to a ¥675 million drop in non-operating foreign exchange gains), this figure successfully exceeded the aggressive ¥15.0 billion target established in the 2025 Revised Management Plan. A massive surge in extraordinary income, driven by a ¥2,365 million gain on the sale of non-current assets, ultimately pushed the final bottom-line Profit Attributable to Owners of Parent up by 1.0% to a record ¥12,535 million.
Balance Sheet
| Balance Sheet Item | Amount (Millions of yen) |
| Total Current Assets | ¥126,148 |
| Total Non-current Assets | ¥60,909 |
| Total Assets | ¥187,058 |
| Total Current Liabilities | ¥58,379 |
| Total Non-current Liabilities | ¥27,037 |
| Total Liabilities | ¥85,417 |
| Shareholders’ Equity | ¥86,962 |
| Accumulated Other Comprehensive Income | ¥8,025 |
| Non-controlling Interests | ¥6,652 |
| Total Net Assets | ¥101,640 |
Source: KROSAKI HARIMA CORPORATION Annual Securities Report The 134th Fiscal Year.
The corporate balance sheet reflects a deeply entrenched position of financial stability, characterized by expanding asset bases and highly disciplined leverage management. Total assets swelled by ¥8,038 million during the fiscal period to reach ¥187,058 million, indicative of a growing enterprise actively reinvesting in its operational footprint.
- Asset Expansion Drivers: Current assets expanded by nearly ¥7.0 billion, fueled largely by an increase in notes and accounts receivable and contract assets directly tied to the surge in Furnace segment construction contracts. Non-current assets grew via aggressive machinery and equipment acquisitions.
- Liability Management: Management successfully reduced total liabilities by ¥904 million. A significant reduction in short-term borrowings was strategically offset by the issuance of ¥15,000 million in commercial papers, optimizing the corporation’s short-term liquidity profile.
The equity position of the enterprise remains exceptionally robust. Total net assets crossed the monumental one hundred billion yen threshold, climbing to ¥101,640 million. This structural fortification was driven by the aggressive retention of corporate earnings, pushing the overall equity ratio to a highly secure 50.8%, ensuring the firm possesses the necessary capital buffer to absorb severe future macroeconomic shocks or fund massive overseas capacity expansions.
Cash Flow
| Cash Flow Category | Amount (Millions of yen) |
| Net Cash Provided by (Used in) Operating Activities | ¥3,144 |
| Net Cash Provided by (Used in) Investing Activities | ¥(4,331) |
| Net Cash Provided by (Used in) Financing Activities | ¥986 |
| Effect of Exchange Rate Change on Cash | ¥39 |
| Net Increase (Decrease) in Cash and Cash Equivalents | ¥(161) |
| Cash and Cash Equivalents at End of Period | ¥8,322 |
Source: KROSAKI HARIMA CORPORATION Annual Securities Report The 134th Fiscal Year.
The statement of cash flows illustrates an aggressive reinvestment cycle, where operating cash generation is immediately deployed into physical capacity expansion and strategic financial restructuring.
- Operating Liquidity: Operating activities generated ¥3,144 million in positive cash flow. While fundamentally sound, this represented a steep decline from the prior year’s ¥13,724 million, dragged down heavily by a massive ¥5,433 million increase in trade receivables tied up in uncollected construction revenues, alongside heavy tax payments totaling ¥5,792 million.
- Capital Deployment: Investing activities consumed ¥4,331 million. Management aggressively deployed ¥7,489 million for the purchase of non-current physical assets to modernize global manufacturing lines, partially offset by liquidating non-core real estate and investment securities.
Financing activities provided a net positive ¥986 million, revealing dynamic capital restructuring. The corporation rapidly paid down ¥8,208 million in short-term borrowings while simultaneously drawing down ¥12,000 million in commercial papers. This restructuring, combined with steady long-term debt recycling and ¥3,527 million distributed directly to shareholders via dividends, left the enterprise with a highly secure terminal cash position of ¥8,322 million.
Board of Directors and Leadership Team
| Name | Position / Role |
| Kazuhiro Egawa | Representative Director, President |
| Takeshi Yoshida | Director, Managing Corporate Officer |
| Jumpei Konishi | Director, Managing Corporate Officer |
| Masafumi Takeshita | Director, Managing Corporate Officer |
| Hisatake Okumura | Director, Managing Corporate Officer |
| Naoki Furuta | Director, Executive Advisor |
| Ryusuke Miura | Director, Managing Corporate Officer (To be appointed June 2025) |
| Matsuji Nishimura | Outside Director |
| Takuji Kato | Outside Director |
| Yumi Akagi | Outside Director |
| Kazuyuki Ishibashi | Outside Director (To be appointed June 2025) |
| Masaya Honda | Full-time Corporate Auditor |
| Takaki Goto | Corporate Auditor |
| Morio Matsunaga | Outside Corporate Auditor |
| Sunao Okaku | Outside Corporate Auditor |
Source: KROSAKI HARIMA CORPORATION Annual Securities Report The 134th Fiscal Year.
Detailed Director Profiles
Kazuhiro Egawa (Representative Director, President): A veteran of the global steel industry, Egawa joined Nippon Steel Corporation in 1981. He built a formidable career driving international expansion, eventually serving as Head of the Overseas Marketing Division and leading the massive Usiminas Project in the Americas. He transferred to Krosaki Harima as an Advisor in April 2019 and assumed the Presidency in June 2019, bringing unparalleled insight into the strategic demands of the corporation’s largest client and parent company.
Takeshi Yoshida (Director, Managing Corporate Officer): Yoshida joined Nippon Steel in 1985, building deep expertise in labor administration and materials purchasing. He joined Krosaki Harima in 2010 as General Manager of the Planning Division. He currently oversees critical corporate headquarters functions, including Purchasing, Accounting & Finance, and Corporate Planning, while directly leading the enterprise’s sustainability promotion initiatives.
Jumpei Konishi (Director, Managing Corporate Officer): Entering Nippon Steel in 1988, Konishi specializes in steelworks technology and engineering. He served as General Manager of the Steelworks Technology Division before joining Krosaki Harima as an Outside Director in 2015. Transitioning to an internal executive role, he now spearheads Carbon Neutrality Promotion and directs the Refractories Manufacturing Unit and comprehensive Research & Development operations.
Masafumi Takeshita (Director, Managing Corporate Officer): A lifelong company veteran, Takeshita joined Krosaki Refractories in 1986. Rising through the Administration, Personnel, and Sales divisions, he possesses deep institutional knowledge of the domestic market. He currently manages the Human & Plant Safety, Health and Environmental Unit while overseeing vital internal functions such as Digital Innovation and Risk Management.
Hisatake Okumura (Director, Managing Corporate Officer): Joining the organization in 2004, Okumura climbed the ranks within the Refractories Manufacturing Business Division. Transitioning to global strategy, he served as Senior General Manager of the Overseas Business Division. He currently leverages this international expertise to direct the Refractories Global Sales Unit, driving the corporation’s critical overseas growth mandates.
Yumi Akagi (Outside Director): Bringing vital external diversity and consumer-facing operational experience to the heavy industrial board, Akagi joined Kyushu Railway Company in 1991. Having held senior roles in Strategy Management, Human Resources, and Customer Service, she provides the board with specialized, objective insights into human capital management, corporate planning, and broad strategic governance.
Subsidiaries, Associates, Joint Ventures
| Entity Name | Ownership % | Segment | Revenue (Millions of yen) | % of Total Revenue |
| TRL KROSAKI REFRACTORIES LIMITED | 77.62% | Refractories | ¥47,157 | 26.50% (Calculated by FirmsWorld) |
| SN Refratecture Tokai Co., Ltd. | 65.0% | Refractories | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. |
| Krosaki Furnace Construction Co., Ltd. | 51.0% | Furnace | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. |
| KROSAKI AMR REFRACTARIOS, S. A. U. | 100.0% | Refractories | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. |
| REFRACTARIA, S. A. U. | 100.0% | Refractories | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. |
| Wuxi Krosaki Sujia Refractories Co., Ltd. | 68.0% | Refractories | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. |
| Krosaki USA Inc. | 100.0% | Refractories | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. |
| Krosaki Harima (Shanghai) Enterprise Management | 100.0% | Refractories | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. |
| Krosakiharima Europe B. V. | 100.0% | Refractories | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. |
| TRL KROSAKI ASIA PRIVATE LIMITED | 97.0% | Refractories | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. |
| TRL KROSAKI CHINA LIMITED | 100.0% | Refractories | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. |
| Shin-Nippon Thermal Ceramics Corporation | 50.0% | Ceramics | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. |
| YINGKOU KROSAKIHARIMA REFRACTORIES CO., LTD. | 49.0% | Refractories | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. |
Source: KROSAKI HARIMA CORPORATION Annual Securities Report The 134th Fiscal Year. Note: Shin-Nippon and YINGKOU KROSAKIHARIMA are entities accounted for using the equity method.
TRL KROSAKI REFRACTORIES LIMITED
Operating out of Odisha, India, this subsidiary stands as the undisputed crown jewel of the corporation’s overseas portfolio. Acquired initially as TATA REFRACTORIES LIMITED, the entity completely dominates the Indian domestic market while serving as a massive export hub.
- Financial Gravity: The subsidiary generated an astonishing ¥47,157 million in net sales, single-handedly contributing over a quarter of the entire global enterprise’s consolidated revenue.
- Profitability Anchor: The operation is highly lucrative, delivering ¥5,349 million in ordinary profit and holding ¥30,772 million in total assets, providing the financial firepower to fund continuous localized capacity expansions.
KROSAKI AMR REFRACTARIOS, S. A. U. & REFRACTARIA, S. A. U.
These twin wholly-owned subsidiaries anchor the corporation’s footprint on the European continent. Located in the industrial heartlands of Guipuzkoa and Asturias, Spain, these entities manufacture specialized refractory products tailored for the mature, high-grade European steel and cement markets.
- Strategic Consolidation: KROSAKI AMR acts as a specified subsidiary, maintaining a robust asset base exceeding 4.9 billion yen, while actively driving cross-selling synergies with REFRACTARIA to defend market share against regional economic stagnation.
- Export Hub: Management actively utilizes these highly advanced Spanish manufacturing bases not just for European consumption, but to fulfill specialized demand across emerging markets in the Middle East and Africa.
Asian Operations Matrix (Wuxi, Shanghai, Liaoning)
The corporation attacks the massive Chinese industrial market through a decentralized network of specialized entities. Wuxi Krosaki Sujia Refractories operates as the primary physical manufacturing base in Jiangsu, backed by TRL KROSAKI CHINA LIMITED in Liaoning.
- Management Overlay: To coordinate this vast footprint, the enterprise utilizes Krosaki Harima (Shanghai) Enterprise Management Co., Ltd. to unify business strategies, optimize raw material procurement, and manage regional sales inside and outside China.
- Supply Chain Defense: Beyond sales, this Chinese network acts as a critical procurement base for essential raw materials necessary to feed the corporation’s global manufacturing operations, requiring intense strategic management to navigate geopolitical country risks.
Other Investments (Including Minority / Portfolio Holdings)
| Entity Name | Nature of Investment | Ownership % | Revenue Contribution | % of Total Revenue | Value on Balance Sheet (Millions of yen) |
| YASKAWA Electric Corporation | Strategic / Cross-shareholding | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. | ¥1,865 |
| Mitsubishi UFJ Financial Group, Inc. | Financial / Strategic | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. | ¥867 |
| Chubu Steel Plate Co., Ltd. | Strategic / Business Partner | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. | ¥148 |
| Topy Industries, Ltd. | Strategic / Business Partner | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. | ¥93 |
| Daido Steel Co., Ltd. | Strategic / Business Partner | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. | ¥84 |
| AICHI STEEL CORPORATION | Strategic / Business Partner | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. | ¥63 |
| OSAKA STEEL CO., LTD. | Strategic / Business Partner | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. | ¥38 |
| GODO STEEL, Ltd. | Strategic / Business Partner | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. | ¥28 |
| Nippon Yakin Kogyo Co., Ltd. | Strategic / Business Partner | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. | ¥16 |
| MITSUBISHI STEEL MFG. CO., LTD. | Strategic / Business Partner | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. | Not separately disclosed in the provided source. | ¥15 |
Source: KROSAKI HARIMA CORPORATION Annual Securities Report The 134th Fiscal Year.
Detailed Investment Profiles
YASKAWA Electric Corporation: Representing the largest specified investment security on the balance sheet, this ¥1.86 billion holding is deeply strategic. The two corporations share profound historical and regional ties in Kitakyushu. Beyond passive investment, Krosaki Harima actively utilizes YASKAWA’s advanced robotics to automate its refractory manufacturing processes, making this holding essential for maintaining long-term operational and technological collaboration.
Mitsubishi UFJ Financial Group, Inc.: This ¥867 million holding functions primarily as a financial stabilizing mechanism. The corporation retains these shares to maintain and strengthen critical financial transactions, ensuring MUFG remains a stable, highly flexible source of institutional capital required to execute the enterprise’s aggressive global business strategies and capital expenditure plans.
Strategic Steel Partners: The remaining portfolio consists entirely of targeted cross-shareholdings in major domestic steel producers (Chubu Steel Plate, Topy Industries, Daido Steel, AICHI STEEL, etc.). These holdings, while financially smaller, act as commercial glue, binding the corporation directly to its end-users to secure long-term purchase contracts and maintain dominance within the domestic refractories market.
Physical Properties
The corporation maintains a sprawling physical infrastructure to support heavy manufacturing, localized engineering, and global logistics.
- Domestic Mega-Facilities: The physical footprint is anchored by the massive Yahata Plant co-located with the Head Office in Fukuoka, which boasts a book value exceeding 11 billion yen. Heavy production is further supported by the Bizen Plant in Okayama and the specialized Takasago Monolithic Plant in Hyogo.
- International Production Hubs: The global supply chain relies on massive overseas physical assets, dominated by the TRL KROSAKI branch and plant in Odisha, India (valued at over 10 billion yen). Additional critical manufacturing infrastructure includes the KROSAKI AMR plant in Guipuzkoa, Spain, and the Wuxi Krosaki plant in Jiangsu, China.
- Non-Core Properties: The enterprise operates highly profitable commercial real estate, specifically a shopping center complex located in Izumisano City, Osaka, utilized for third-party rental income.
Parent Company
Krosaki Harima Corporation operates as a consolidated subsidiary tightly integrated into the corporate architecture of NIPPON STEEL CORPORATION.
- Ownership Dominance: Nippon Steel commands ultimate strategic control, holding 46.42% of the total issued shares and wielding 46.6% of the voting rights.
- Commercial Integration: The relationship transcends mere equity ownership. Nippon Steel is the corporation’s absolute largest customer, generating ¥72,139 million in direct net sales during the fiscal year, representing an overwhelming 40.5% of Krosaki Harima’s entire consolidated revenue.
- Financial Reliance: The integration extends deeply into financial management, with Krosaki Harima routinely selling massive tranches of its trade receivables (totaling ¥12.0 billion during the period) to NIPPON STEEL FINANCE Co., Ltd., optimizing cash flow while binding the two entities’ treasury operations.
Investments and Capital Expenditure Plans
To execute the mandates of the 2025 Revised Management Plan, the enterprise is currently engaged in a massive capital deployment cycle aimed at modernizing production and capturing global demand.
- Capital Allocation: During the fiscal year, total capital investments reached ¥8,528 million. The Refractories segment absorbed the vast majority (¥6,345 million) to upgrade continuous casting and converter refractory equipment.
- Growth Segment Funding: The Ceramics segment received ¥1,360 million in targeted capex, preparing manufacturing lines for anticipated surges in orders from the semiconductor and environmental sectors.
- Future Mandate: Management has publicly committed to deploying a massive ¥35.0 billion in total capital investments over the five-year duration of the current management plan, prioritizing the construction of a new manufacturing plant in western India and extensive capacity expansions across the global footprint.
- Research & Development: The enterprise heavily funds internal innovation, deploying ¥1,273 million into R&D. Engineering efforts focus intensely on developing new functional materials for the hydrogen reduction steelmaking process (COURSE50) and expanding the K-GenesisX™ environmental product line.
Shareholding Pattern
| Shareholder Category / Name | Ownership % |
| Promoter / Parent (NIPPON STEEL CORPORATION) | 46.42% |
| Custody Bank of Japan, Ltd. (Trust Account) | 12.01% |
| The Master Trust Bank of Japan, Ltd. (Trust Account) | 7.77% |
| The Bank of Fukuoka | 2.21% |
| HSBC BANK PLC A/C TTF AIFMD GENERAL OMNIBUS | 1.07% |
| YASKAWA Electric Corporation | 0.83% |
| J.P. MORGAN BANK LUXEMBOURG S.A. 381572 | 0.82% |
| BNP PARIBAS LUXEMBOURG / UCITS ASSETS | 0.81% |
| THE BANK OF NEW YORK MELLON 140042 | 0.73% |
| JP MORGAN CHASE BANK 385781 | 0.65% |
Source: KROSAKI HARIMA CORPORATION Annual Securities Report The 134th Fiscal Year. Note: The Company holds 7.63% of issued shares as treasury stock.
Future Strategy
The enterprise’s forward trajectory is strictly governed by the “2025 Revised Management Plan,” which mandates a transition into a world-class comprehensive ceramics company.
- Financial Ambition: Management has established aggressive final-year (FY2025) financial targets, aiming to cross ¥180.0 billion in consolidated net sales while generating ¥15.0 billion in ordinary profit with a Return on Invested Capital (ROIC) exceeding 9.0%.
- Geographic Offense: The strategy prioritizes relentless expansion in the rapidly growing Indian market, full utilization of the TRLK production capabilities, and deeper penetration into the Americas through a newly established joint venture with Brazil’s IBAR.
- Technological Shift: Operations will pivot heavily toward decarbonization. The strategy demands rapid sales expansion of high-environmental-value products under the K-GenesisX™ brand, alongside immediate R&D into refractory technologies required for upcoming hydrogen-based steelmaking processes.
Key Strengths
- Captive Demand Base: The deeply entrenched equity and commercial relationship with NIPPON STEEL CORPORATION provides a massive, highly stable revenue floor, protecting the enterprise from extreme market volatility.
- Geographic Diversification: The massive success of the Indian operations (generating over 26% of global revenue) successfully insulates the corporation from the ongoing structural decline in Japanese domestic steel production.
- Balance Sheet Fortress: Operating with an equity ratio over 50% and a massive net asset base exceeding ¥100 billion, the enterprise commands the financial flexibility required to self-fund massive international capital expansions without resorting to dilutive equity raises or dangerous debt leveraging.
Key Challenges and Risks
- Macroeconomic Steel Dependency: The corporation remains highly vulnerable to global crude steel output trends. Sustained contractions in domestic construction or a continued flood of disruptive, cheap steel exports from China could severely compress future order volumes.
- Country and Geopolitical Risk: Heavy reliance on China as a primary procurement base for essential refractory raw materials exposes the entire global supply chain to massive disruption from sudden trade restrictions, tariffs, or political instability.
- Input Cost Inflation: Operations are heavily dependent on imported raw materials, liquefied natural gas (LNG), and heavy oil. Prolonged spikes in global energy markets or severe depreciation of the Japanese Yen can violently compress gross margins if management fails to instantly pass costs onto final customers.
- Human Capital Deficits: In the context of Japan’s rapidly aging demographic, the failure to secure, train, and retain highly specialized engineering talent poses a severe, existential threat to long-term R&D capabilities and production quality.
Conclusion and Strategic Outlook
Krosaki Harima Corporation operates as a deeply entrenched, financially fortified industrial powerhouse navigating a complex transitional era. While structural declines in the domestic Japanese steel market pose continuous headwinds, management has successfully engineered a highly effective international growth apparatus, completely dominating the booming Indian market to secure top-line expansion.
The corporation is aggressively deploying its massive balance sheet strength into capital expenditures, transforming its technological base to meet the urgent global demand for carbon-neutral industrial processes. By successfully pivoting from a traditional brick manufacturer into a provider of advanced, eco-friendly ceramic solutions and integrated furnace engineering, Krosaki Harima is fundamentally securing its relevance for the next century of global manufacturing. Investors and industrial analysts must closely monitor the execution of the 2025 Revised Management Plan, specifically the capacity scaling in India and the market penetration of the K-GenesisX™ brand, to gauge the enterprise’s long-term value creation potential.
Official Site: https://www.krosaki.co.jp