Business Activities

Under our corporate slogan Challenge and Innovate, Daichu Corporation is expanding business activities into new fields as demanded by global society.

As an independent trading company, we are constructing business frames through freethinking, thereby contributing to society.

Since our establishment in 1947, Daichu Corporation has been expanding business activities into new fields, centered on raw materials and fuel trading with major companies in Japan. As a trading company, we proudly handle some of the largest product volumes in the coal coke field. The strength of Daichu Corporation lies in its ability to aggressively expand business activities as an independent trading company. We are able to utilize our ties with both suppliers and distributors with a high degree of freedom without depending on a framework of affiliates, thereby enabling us to handle a wide range of products. Accordingly, we have excellent mobility that is impossible for major trading companies, enabling us to carry out tripartite trade activities in Asia, lead the world in developing business with China, and open up Russian fuel commodities, causing a sensation in domestic markets. We are also boldly entering new niche business fields. Raw materials and fuels are commodities that cannot be discussed without mentioning imports and exports. While withstanding the impact of global politics and economics, Daichu Corporation has been able to build a corporate history spanning over 70 years. Today, we live in an age that demands that trading companies perform new functions and roles. Daichu Corporation is also identifying our trading partners’ needs and creating business frames appropriate for the global age. Our environmental recycling and biomass businesses were truly born in response to the needs of the age, and we have been successful in getting these businesses on track. Being able to establish a huge global business based on a single idea is a pleasure unique to trading companies. Moving forward, we will continue to expand our business on the Asian stage so as to contribute to society under our slogan Challenge and Innovate.

Business domain

Business domain
Steels
Coal cokes / Needle cokes / Anthracites / Graphite electrodes / Ferroalloys / Heat Insulating Materials
Energy
Biomass fuels / Petroleum products / Reclaimed oils / Coals
Environment
Waste recycling / Environment-related facilities / Conversion old tatami mats to fuel
Chemical products
Industrial chemicals / Activated carbon
Cement
Natural gypsum / Waste recycling / ALC
Paper manufacturing
Used papers / Chips

Carbon materials-related business activities

Carbon materials-related business activities

Developing business fields that major trading companies cannot to be No. 1 in the coal coke industry!

The main business activities are the import, export, and sale of fuels and secondary materials of coal coke and anthracite. We supply carbon materials to many enterprises, centered on major steel manufacturers, proudly some of the largest product volumes in the coal coke field. Coal coke is an essential material for blast furnace manufacturers to produce molten iron. Moreover, lime manufacturers require coal coke and anthracite for firing, making these materials indispensable for Japan’s key industries. Daichu Corporation has yards equipped with sifting equipment in four locations within Japan and stocks product inventory. From small-lot to large-lot demand, we are able to respond flexibly to our trading partners’ needs, fine-tuning orders in accordance with partners’ needs for ingredients and grain size as well. The reason we are able to provide such meticulous service is because we have many suppliers and distributors both in Japan and overseas. With our experience and familiarity with handling coal materials, we are expanding our business centered on users. Furthermore, coal coke market price fluctuates sharply, making these difficult materials to handle as a business. On a certain day, there may be a sudden domestic surplus, forcing us to switch from importing to exporting, but Daichu Corporation is able to adapt to changing circumstances as required by utilizing the knowledge and know-how we have accumulated over numerous decades. We are also expanding business activities that can adapt quickly to new circumstances, such as proactively participating in tripartite trade—something that is impossible for major trading companies. Moving forward, we will further cultivate suppliers and distributors in both Japan and overseas, expanding and enhancing our product lineup. We are also planning to move into Southeast Asian markets, where demand is expects to continue to grow. Aiming to be No. 1 in the coal coke industry, we will place even greater emphasis on our relationships of trust with our trading partners and solidify our reputations as Daichu Corporation for black goods.

Steel materials-related business activities

Steel materials-related business activities

Utilizing our know-how in graphite electrode sales, we are meeting the front-line needs of the steel industry.

We has long been importing graphite electrodes for use in steel manufacturing, carbon blocks, ferroalloys, and other products from Southeast Asia and supplying these to domestic steel manufacturers. In particular, Daichu Corporation is universally recognized as a pioneer in the supply of China-made graphite electrodes for use in steel manufacturing, a business that we began in 2000 and whereby we import products made with Japanese materials and equipment by Japanese technicians from Chinese electrode manufacturers with which we have concluded agreements. Since these products are higher quality than general Chinese products, we have secured the top share of the import electrodes market. At the same time, we are also developing various other businesses, including tripartite trade with steel manufacturers in China and Southeast Asia, export of coal coke to electrode manufacturers in China, and export of ferrous and nonferrous scraps to steel manufacturers in Southeast Asia. In recent years, we have been pouring effort into domestic sales of ferrous and nonferrous scraps and carburizing materials for steel manufacturing as the electrodes market has been shrinking. Daichu Corporation trades with virtually all steel manufacturers in Japan and has close ties with frontline technicians through our electrodes sales. For this reason, we are well aware of frontline needs and are linking this knowledge to sales of materials, such as ferroalloys and carbon black, by gathering information directly about raw materials, secondary materials, indirect materials, and facilities. Our business is characterized not only by its sales, but also by the way it listens to technicians on the frontlines and identifies business seeds. Even for the same product, we aim to provide better-quality products in order to increase sales without becoming embroiled in a price war.

Environmental recycling-related business activities

Environmental recycling-related business activities

We propose and construct cross-sectorial industrial waste recycling businesses, contributing greatly to the environment!

We are expanding our environment-related consulting business based on the two pillars of handling recycling products and selling products for use in counteracting environmental problems. Industries, such as steel manufacturing, paper manufacturing, construction, and plants, generate industrial waste on a daily basis. Daichu Corporation proposes, constructs, and operates business models whereby theses waste materials are recycled for use by other industries. For example, we commission cement manufacturers to recycle steel slag generated by steel manufacturers and sludge/incineration ash generated by paper manufacturers into raw materials for cement. Paper sludge generated by paper manufacturers is carbonized, reused, and sold to steel manufacturers as heat insulating materials. All of these environmental businesses were born as the result of exploration for methods of effectively utilizing waste materials. We were able to realize cross-sectorial industrial waste recycling matching precisely because Daichu Corporation has companies in a broad range of industries as trading partners. A representative environmental recycling product is paper manufacturing materials (used paper). Daichu Corporation handles more than 5,000 tons per month of used paper collected from the six prefectures in the Tohoku region and then supplies the used paper to paper manufacturers in Japan or exporting it to Asia. In addition, we sell activated carbon and industrial-use pharmaceuticals for various uses as products to counteract environmental problems to companies in many industries, and we also import products from overseas. In future, it is anticipated that the rapidly increasing coal-fired power plants and biomass power plants will generate huge amounts of boiler ash. We are currently collaborating with the research laboratory of a major cement manufacturer to discover effective methods for utilizing boiled ash.

Biomass Business Activities

Biomass Business Activities

Meeting rapidly growing demand for biomass fuels—we expand importing and selling PKS.

With the launch of the Feed-in Tariff Scheme (FiT) for Renewable Energy in 2012, biomass power plants have been appearing one after throughout Japan. The main businesses of our Biomass Business are importing Palm Kernel Shells (PKS)—a biomass fuel—and selling them to power plants throughout Japan. PKS fractions remain after palm nuts have been crushed to extract their oil. Indonesia and Malaysia together produce more than 80% of the world’s palm oil production volume. In collaboration with companies in Indonesia, Daichu Corporation carries out strict quality control of locally produced PKS, which we then import to Japan and sell. Since PKS was previously disposed of as a by-product, quality was unstable and only ingredients and water content could be controlled. However, through trial and error in collaboration with local subcontractors, we came to handle PKS that is a material with high-energy content and good combustion efficiency with as little foreign matter as possible. Now, our customers and other companies in the industry rate our PKS as No. 1 for quality. Demand for PKS has skyrocketed from virtually zero a few years ago to approx. 450, 000 tons in 2015, with demand expected to reach approx. 3 million tons between 2019 and 2020. In 2015, Daichu Corporation sold approx. 110,000 tons of PKS—equal to one-quarter of Japan’s domestic supply. Moving forward, we will endeavor to continue securing multiple suppliers and expand our distribution routes, maintaining our top position within the industry. Furthermore, it is regarded as a certainty that demand for not only PKS but also other biomass fuels such as pellets and chips will also increase in the future. To enable Daichu Corporation to meet these demands, we are pursuing tie-ups with partner companies overseas.

Offices

Tokyo Head Office

Tokyo Head Office
Three sections collaborating and working dynamically together in locations perfect for global business
Daichu Corporation’s organizational structure comprises Tokyo Headquarters plus the Tokyo Head Office, Osaka Head Office, and Nagoya Branch Office in a system of three main branch offices and one business division (Biomass Business Division). The Tokyo Head Office has a choice location in Tokyo’s Ginza district. Completed in August 2015, the modern-looking office building houses both Daichu Corporation’s Tokyo Headquarters and Tokyo Head Office. The Carbon Materials , Steel Materials , Environmental Recycling and Biomass business operate within the Tokyo Head Office, enabling business strategy planning and marketing activities as the various divisions closely exchange information and collaborate. The majority of Daichu Corporation’s main trading partners—steel manufacturers, cement manufacturers, and paper manufacturers—have their headquarters located in central Tokyo. All of these offices are located in areas easily accessible from Daichu Corporation’s Tokyo Head Office, enabling negotiations and presentations to proceed speedily and efficiently. Of course, the embassies and consulates of the countries where we do business are also located in Tokyo. Moreover, a huge number of flights from around the world fly in and out of two hub airports, Tokyo International Airport (Haneda) and Narita International Airport, on a daily basis. This minimizes time lag for us when seeing customers off overseas or heading overseas for emergency on-site inspections or negotiations. Based on the truly optimal conditions for expanding business overseas that Tokyo presents, the Tokyo Head Office is opening up new business frontiers.

Osaka Head Office

Osaka Head Office
Grasping market needs swiftly, we are expanding our fields of business from new perspectives!
The Osaka Head Office is expanding business activities centered on the west Japan region. We meticulously respond to needs in niche areas that general trading companies cannot cover. While business activities are the same as those at the Tokyo Head Office and Nagoya Branch Office , one of the characteristics of the Osaka Head Office is that it handles activated carbon, which is used in the water treatment process at water treatment facilities in Osaka. This business was launched after we focused attention on the water market approx. 30 years ago. In addition, while used activated carbon was disposed of as waste in the past, we discovered there was a possibility that it could be utilized effectively by other industries. Consequently, working in collaboration with recycling division staff, we presented proposals to cement manufacturers, and used activated carbon is now being utilized as an alternative fuel in cement manufacturing. During the past one to two years, in accordance with vehicle exhaust gas regulations, we have been increasing our handling of pharmaceutical-related products, such as urea, as materials for neutralizing exhaust gasses. Furthermore, amidst a rush of construction plans for large-scale biomass power plants, we intend to expand our sales of biomass fuels in the west Japan region. Our motto is to present customers with a wide range of products rather than focusing on only one field. Our daily marketing activities enable us to swiftly identify market needs, then construct schemes for realizing these needs and propose these schemes to customers, tying all these activities into trading—this can be said to be the pleasure of our work. Our workplace is one where female employees are also active in marketing, creating a comfortable, homey atmosphere. If a problem arises, we have systems in place for all staff members to provided follow-up. In future, with even greater solidarity, we intend to continue to expand our business activities that contribute to society through our strengths on the environmental field.

Nagoya Branch Office

Nagoya Branch Office
Acting as the sole supply source for a wide range of products, we are meeting the needs of customers in the Chubu region
The Nagoya Branch Office sells a wide range of Daichu Corporation products to enterprises in the Chubu region. Since our establishment in 2006, our Daichu Corporation for coal coke brand power has spoken for itself, and we have been expanding our sales routes one after the other. With our high brand recognition, we sell not only coal coke but also anthracite, coal ash, steel-making fuels, and secondary materials to mainly steel and cement manufacturers. We are also expanding our products to include graphite electrodes as well as PKS and other biomass fuels, developing locally based businesses across product categories. Furthermore, we are also opening up our own independent sales routes. Working in coordination with suppliers in various Asian countries, we import cost-competitive fuels and secondary materials and then propose and provide a stable supply of these products to customers. Seeking new products, we travel around the world visiting emerging countries to discover high-value-added products, which shows the true worth of a trading company’s work. When Daichu Corporation first sold high-grade anthracite from Russia—a product that had not be used in the Chubu region until them—the response from customers was highly positive. Furthermore, at the Nagoya Branch Office, one marketing staff member can be placed in charge of all aspects of the business process for a customer, from developing new products to procurement, import/export, delivery, and payment collection, providing enormous job satisfaction. In future, we will continue to develop our own independent purchasing routes, creating a system capable of responding to customers’ needs even more speedily and efficiently.