Dainichiseika Color & Chemicals Mfg. Co., Ltd. (TSE Prime: 4116) told the Tokyo Stock Exchange on September 15, 2026 that its board had settled the concrete details of a business restructuring first flagged on May 15. The company will exit its offset-ink and chitosan businesses outright, both hit by prolonged demand declines, and will shrink other product lines that cannot be made profitable through cost cuts alone.
Together, the businesses being cut or downsized accounted for about 5% of consolidated sales in the year to March 2026, though management has not said how much of that revenue disappears immediately. Exit and reduction timing will be communicated business by business, directly to affected customers, and the wider portfolio optimization runs through the end of March 2029.
Two domestic sites go with it. The Hokkaido Branch in Sapporo, which makes and sells offset ink, stops production at the end of December 2026 and closes for good by the end of March 2027. The Osaka Manufacturing Site in Higashiosaka, which produces colorants, keeps running until the end of September 2028 before closing by the end of March 2029, giving the company nearly two more years to shift that output elsewhere in the group.
| Site | Activity | Production Stop | Closure Date |
|---|---|---|---|
| Osaka Manufacturing Site (Higashiosaka) | Colorant production | End-September 2028 | End-March 2029 |
| Hokkaido Branch (Sapporo) | Offset-ink production and sales | End-December 2026 | End-March 2027 |
Some products made at the two sites will move to other group plants, and workers there are being offered reassignment within the group or a career-transition support program, tailored to individual circumstances. Dainichiseika is also folding domestic general-affairs, HR and accounting work into a new Shared Service Center headquarters, a back-office consolidation running alongside the manufacturing cuts.
The stated goal is capital efficiency. Dainichiseika's three-year plan, "Tomorrow's Transformation 2027," carries medium-to-long-term targets of 9% return on equity and 5% return on assets, with interim goals of 5%-plus ROE and 4.3% ROA for the year ending March 2027. Management says hitting those numbers requires redirecting capital and staff toward growth areas, chiefly IT and electronics functional materials and mobility, including new product development, overseas expansion and acquisitions, rather than propping up shrinking legacy lines.
What the cuts will cost is still unclear. Dainichiseika expects to book a restructuring charge tied to the site closures but has not set an amount, and has left it out of both first-half and full-year guidance for the year ending March 2027. The company says it will disclose figures once they are known, and the medium-to-long-term earnings effect will surface in its next three-year plan, due in June 2027.