Denka
Denka Company Limited is a Japanese multinational chemical company founded in 1915 as the successor to the Hokkai Carbide Plant for the production of calcium carbide and chemical fertilizers utilizing limestone resources.[1] Headquartered at Nihonbashi Mitsui Tower in Chuo-ku, Tokyo, the company manufactures and sells organic and inorganic chemicals, electronic materials, pharmaceuticals, resin-related products, and cement additives across Japan, Asia, and other regions.[2][3] Denka has expanded internationally, including through the acquisition of DuPont's Neoprene polychloroprene business in 2015, forming Denka Performance Elastomer LLC in the United States.[4] The company operates in diverse sectors such as life innovation, electronics, and environment & energy, emphasizing sustainable chemistry contributions.[5] Notable controversies include environmental concerns over chloroprene emissions from its Louisiana facility, which led to a U.S. Department of Justice lawsuit in 2023 alleging Clean Air Act violations and public health risks, subsequently dismissed in 2025; the plant suspended production in May 2025 citing regulatory pressures and market slowdowns.[6][7][8] Denka's stock is listed on the Tokyo Stock Exchange under code 4061.[3]Overview
Corporate Profile
Denka Company Limited is a Japanese chemical manufacturer established on May 1, 1915, with initial operations tracing back to electrical insulator production in Hokkaido starting in 1912.[2][9] Headquartered in Tokyo's Chuo Ward, the company focuses on the development and production of organic and inorganic chemicals, including elastomers, cement additives, and advanced materials for electronics and infrastructure applications.[2] Its core operations emphasize industrial chemicals serving sectors such as automotive, construction, and electronics, prioritizing production processes grounded in material science efficiencies.[10] As of March 31, 2024, Denka employs 4,330 people on a non-consolidated basis and 6,514 on a consolidated basis, reflecting its scale as a mid-sized multinational in the chemicals industry.[11] The firm maintains a global footprint with manufacturing sites in Japan, the United States, and Europe, supporting its business segments in electronics, life innovation, elastomers, and infrastructure.[12] Denka holds a leading position in chloroprene rubber (neoprene) production, with capacity exceeding 170 kilotons annually across its facilities, making it the world's largest producer in this category as of 2022.[13] In fiscal year 2024 (ended March 31, 2025), Denka reported operating income of 14.4 billion yen, amid efforts to diversify into recycling technologies and advanced materials while navigating market volatilities in chemical feedstocks.[14] The company's paid-in capital stands at 36,998 million yen, underscoring its financial foundation for sustained R&D in high-performance polymers and inorganic compounds.[11]Key Financials and Market Position
For the fiscal year ended March 31, 2025 (FY2024), Denka reported consolidated net sales of ¥400.3 billion, operating income of ¥14.4 billion (up ¥1.0 billion year-over-year), and a net loss of ¥12.3 billion (down ¥24.2 billion year-over-year), primarily due to a ¥16.1 billion impairment loss on assets at its U.S. subsidiary Denka Performance Elastomer LLC following the indefinite suspension of chloroprene rubber production at the Pontchartrain Works facility in May 2025.[14][15][16] This suspension stemmed from escalating compliance costs related to emissions regulations, offsetting gains in other segments such as the startup of a polystyrene chemical recycling plant in March 2024 at the Chiba facility, which processes approximately 3,000 tons of post-consumer polystyrene annually using depolymerization technology licensed from Agilyx.[17][18]| Metric | FY2024 (ended Mar 31, 2025) | YoY Change |
|---|---|---|
| Net Sales | ¥400.3 billion | +2.8% |
| Operating Income | ¥14.4 billion | +¥1.0 billion |
| Net Income | -¥12.3 billion | -¥24.2 billion |
| Total Assets | Not specified in summary | N/A |