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16 Tokyo Chemical Industry Statistics, Trends & Analysis

The Tokyo Chemical Industry Company Ltd. (TCI) was founded in 1946 and would soon become a global leader in the manufacturing of specialty organic chemicals. They provide cosmetic, functional, and pharmaceutical compounds in addition to their natural laboratory materials. With over 60 years of synthesizing experience, the organization currently operates in China, India, Europe, and North America in addition to their headquarters in Japan.

TCI expanded into the United States in 1985, developing the Oregon Research Center, which became operational in 1989. Expansion efforts allow the organization to provide faster deliveries for bulk chemicals in coordination with their sales offices located in Boston, MA.

Total revenues for TCI Chemicals are estimated by Hoovers to be around $86 million. From that figure, the company earns about $5.59 million in net income.

Interesting Tokyo Chemical Industry Statistics

#1. The Japanese chemical industry is the second-largest manufacturing sector in the country, with only transportation machinery making a more significant impact on the economy. When rubber and plastic products are included, about 14% of total output value comes from this sector. (Japan Industry News)

#2. The Japanese chemical industry employs about 860,000 people at any given time. They’re responsible for about 12% of the manufacturing jobs which are present in the country. (Japan Industry News)

#3. About $300 billion in global shipment value was achieved by the Japanese chemical industry in 2013, ranking it as the third-largest in the world behind China ($1.66 trillion) and the United States ($812 billion). (Japan Industry News)

#4. Five organizations in Japan are in the world’s Top 30 chemical companies when measured by total sales, but TCI is not included in that list. Mitsubishi Chemical Corp ranks #11 in the world with $27.7 billion in sales. Mitsui Chemicals Inc. ranks #17, while Sumitomo Chemical Co. Ltd. ranks #19. Toray Industry (ranked #22) and Shin-Etsu Chemical Co. (ranked #29) round out the list. (Japan Industry News)

#5. TCI currently supplies over 300 different types of equipment and supplies to global customers through their manufacturing plants in Japan and the United States. (TCI Chemicals)

#6. Pharmaceutical developments for synthetic routes are the top request made by customers of the Tokyo Chemical Industry Company Ltd. each year. Collaborative research for plastic film materials research, agrochemical raw material manufacturing, and pharmaceutical purification are also popular requests. (TCI Chemicals)

#7. The offices and research laboratories operated by TCI in Japan employ more than 300 people at nine different facilities. (TCI Chemicals)

#8. Tokyo Chemical Industry Company Ltd. offers more than 28,000 quality reagents on a global basis, expanding into electroluminescence compounds for the manufacturing of liquid crystals in recent years. (TCI Chemicals)

#9. 42% of the manufacturing which occurs within the Japanese chemical industry involves organic compounds. Only 7% of the efforts involve inorganic chemicals. Fertilizers account for another 1.2% of the products produced by the industry since 2013. (Japan Industry News)

#10. 9.4% of the organic chemicals include basic petrochemicals. Cyclic intermediates, pigments, and dyes represent 7.5% of production. Aliphatic intermediates are a 4.8% segment, while synthetic rubbers are 2 of the production value. (Japan Industry News)

#11. $25 billion is spent by the Japanese chemical industry each year for research and development. That figure represents 22% of the total spending of this type in Japanese manufacturing. (Japan Industry News)

#12. 52% of the lithium-ion batteries which are manufactured in the world today are by Japanese companies. They are responsible for 92% of the electrolyte solutions used, 58% of the cathode materials, and 90% of the anode materials being used. That level of market penetration is why the chemical industry ranks third for total capital investments. (Nikkakyo)

#13. Since 1990, the energy efficiency rating of the Japanese chemical industry has been improved by 17%. That includes a 29% drop in greenhouse gas emissions under voluntary action plans implemented by individual members. A total of 24 million tons of greenhouse gases are no longer produced. (Nikkakyo)

#14. End products represent over 52% of the shipments produced by the chemical industry in Japan each year. (Nikkakyo)

#15. Only Chiba and Osaka produce over 2 trillion yen in chemical product shipments each year. Tokyo chemical industry firms are ranked 22nd in the nation, with the total value of shipments reaching 396 billion yen. (Nikkakyo)

#16. The chemical industry in Japan ranks first in operating profit margin achieving an average above 5% since 1990. (Nikkakyo)

Tokyo Chemical Industry Trends and Analysis

The chemical industry of Japan receives low levels of national recognition despite its strength on the global stage. Consumers are more likely to respond with the name of an electronics company or an automobile maker than one of the chemical industry stalwarts. There is also a lack of academic research available for the industry as a whole, which limits the forecasting opportunities for firms like Tokyo Chemical Industry Company Ltd.

There are two reasons why national recognition of the chemical industry is diminished: the profitability of the largest companies is still low, and there still isn’t a manufacturer in the global Top 10. Mitsubishi Chemical Corporation will likely eliminate the latter issue within the next 5-year period if its rate of growth continues.

With high levels of capital investment, continued funding of research and development products, and new markets opening regularly to the industry, chemical manufacturers from Japan are looking forward to a very bright future. Although uncertainty will remain in specific sectors, continued strong performances will make this industry a global leader.

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