Urban Infrastructure & Environmental Products (UIEP) Company

Last Update : Sep 25, 2019

President’s Policy

Be reborn, UIEP !

-with new success story for the next decade-

(1) Accelerate and enhance growth strategy
(2) Minimize business-risk

The Urban Infrastructure & Environmental Products (UIEP) Company is a manufacturing and sales leader in Japan in water sewerage and supply pipe systems as well as construction materials supply businesses, which collectively form the company’s core operating platform.

Based on the Medium-Term Management Plan that started in fiscal 2017, we redesigned our business portfolio and set up a new strategic portfolio consisting of three strategic areas: “Piping and Infrastructure,” “Building and Living Environment” and “Advanced Materials.”

We will promote strategies, such as “overseas,” “growth,” “core” and “reform,” in accordance with the market and competitive environments in which the products are produced in each field.

In particular, under “growth” and “overseas,” we will actively introduce high-valueadded products, based on the technologies cultivated in our fundamental businesses for many years, and promote business domain expansion through alternative materials, such as metal, wood and glass.

Topics

Apr. 2018
Management Integration and Name Change of a Production Subsidiary; East Japan Sekisui Industry Co., Ltd. Established
May 2018
Omega-Liner Method Wins the Best Design Award in the Environmental and Equipment Design Award
Mar. 2019
Launch of High Value Added ESLON® Pipe+ (plus) PVC Pipes 1
Apr. 2019
Management Integration and Name Change of a Production Subsidiary; West Japan Sekisui Industry Co., Ltd. Established
Apr. 2019
Launch of Construction Labor Reducing SPR-NX Rehabilitation Pipe 2
May 2019
Environment-Contributing Facility at YAMANASHI SEKISUI CO., LTD. Commences Operation

Fiscal 2018 Performance

Steady expansion in overseas businesses made up for struggles in general products in Japan Achieved record high profit at the company level for a third consecutive fiscal year

In fiscal 2018, the UIEP Company struggled with both sales volume and selling prices for general products in its domestic businesses. In contrast, overseas businesses, including aviation sheets sold in the US, recovered steadily. While net sales were essentially unchanged at ¥239.2 billion, operating income reached ¥15 billion, a ¥200 million increase year on year, thereby helping the Company to achieve record high profits for three consecutive fiscal years.

Looking at the situation by region, although domestic businesses saw a steady expansion of prioritized products, which deliver high added value while promising expectations for growth, they struggled with general products. In addition, the industrial pipe business was negatively affected by the lower demand for IT investments. Turning to overseas businesses, along with steady recovery in the aviation sheet business, capacity expansion investments targeted at growth in the sheet and synthetic railway sleeper businesses came to completion and contributed to performance.

Accelerating the pace of growth in each of the three strategic fields

The UIEP Company has identified Piping and Infrastructure, Building and Living Environment, and Advanced Materials as its three strategic fields. The Company is looking to expand profit over the medium-to-long term by accelerating the pace of growth in each of the three strategic fields and boosting prioritized products, which deliver high added value while promising expectations of growth.

Despite struggling with general products, in fiscal 2018 the Piping and Infrastructure field expanded sales of prioritized products, new products, and rehabilitation pipes that help reduce construction work times, thereby achieving net sales on a par with the previous fiscal year. The Building and Living Environment field saw robust sales of construction materials in part due to demand from natural disaster recovery projects, but this field ultimately experienced lower net sales year on year due to depressed sales of modular bathrooms coinciding with the decline in apartment complex construction starts. The Advanced Materials field saw a steady recovery in sales of aviation sheets in the US and expanded use of synthetic railway sleepers, primarily in Europe and the US. These positive aspects led to higher net sales year on year.

Fiscal 2019 Forecasts

Continuing expansion overseas and accelerating sales of prioritized products in Japan to achieve broad profit growth and record high profits for a fourth consecutive fiscal year

In fiscal 2019, the UIEP Company will continue to expand sales of prioritized products and introduce new products in Japan. Overseas, the Company will continue growth by realizing benefits from the capacity expansion investments made during the previous fiscal year in sheets and synthetic railway sleepers. As a result of these measures, net sales are projected to reach ¥244 billion, an increase of ¥4.8 billion year on year.

Meanwhile, the Company will promote improved margins for general products, with which it struggled in Japan during the previous fiscal year, and accelerate production reorganization and structural reforms of unprofitable businesses. As a result of these measures, operating income for the fiscal year under review is forecast to reach ¥17 billion, an increase of ¥2 billion year on year. On this basis, the UIEP Company is targeting a fourth consecutive fiscal year of record profit.

Accelerating expansion of prioritized products through market-optimized products

In each of its targeted sectors, the UIEP Company will focus its energies on expanding sales of prioritized products that utilize the strengths of the Company. These sectors include the public sector (civil engineering, etc.), the private sector (building construction, etc.), and the overseas sector (aviation sheets, synthetic railway sleepers, etc.). In the public sector, whereas public works budgets are appropriated for infrastructure maintenance and enhancement projects, such as the Plan for National Resilience budget and the Three-year Emergency Response budget, the Company will work to expand sales of prioritized products for aging infrastructure measures that suit these budgets, such as the Sewage (Spirally) Pipe Renewal Method and SEW (Shield Earth Retaining Wall System by FFU synthetic wood) for shield work applications. Moreover, in the private sector, the Company will focus its energies on HYPER AWHP earthquake-resistant water pipes for high-rise buildings and high flowrate drainage systems for heavy rain measures. In the overseas sector, the Company will work to expand use and sales centered on those prioritized products that utilize the Company’s unique prominences, such as flame retardant, excellent design aviation sheets and synthetic railway sleepers that comply with environmental regulations.

Higher sales in the Pipes and Infrastructure and Advanced Materials fields, and structural reform in the Building and Living Environment field

Looking at each of the three strategic fields individually, in the Pipes and Infrastructure field, the Company will continue working to expand sales of prioritized products and new products that contribute to shorter construction work times. Here, the Company will focus on sales on construction markets in the major metropolitan areas. Moreover, the Company will continue promoting alliance strategies for rehabilitation pipes. In the Building and Living Environment field, the Company will work to strengthen earning power through structural reforms and to expand sales of prioritized products and new products (CHOUSHIN LEVOL new housing gutters, large bathrooms for nursing care facilities (KGSF), and high flowrate drainage systems). In the Advanced Materials field, the Company will thoroughly realize the benefits of capacity expansion investments for aviation sheets by capturing new customers and pioneering new applications (construction, medical, railway). By promoting alliance strategies for synthetic railway sleepers, the Company aims to expand their use in Europe, the US, and elsewhere overseas.

Contributing to the SDGs through Operations

Main Products

  • Residential water supply and drainage system
  • Fire-resistant pipes for buildings
  • High-performance seismic polyethylene pipes
  • Plant products with high corrosion and chemical resistance
  • SEW (Shield Earth Retaining Wall System synthetic FFU)
  • Aviation sheets
  • Sewage (Spirally) Pipe Renewal (SPR) Method
  • Designer rain gutters
  • Functional flooring
  • Synthetic railway sleepers
  • Plastic sheet for medical equipment
  • Low elution sterilization container for medical use

Performance Highlights

UIEP Company and Market Data

*Regarding the current earnings plan for FY2019, please see IR Briefig Materials.