Risk of Raw-Material Procurement Disruptions and Supply-Chain Disruptions
First written in FY2020. 4 of 8 entries say "Worsened", first in 2026-05-13. Latest entry: 2026-08-05.
Toho Chemical Industry moved to the "Worse" side of this theme in 2026, 5 years after the typical company in this theme (2021).
The whole theme swung hardest in 2021: 35 of 56 companies on the "Worse" side.
15 other companies' latest entry also says "Restated".
- 2026-08-05RestatedEarnings
「中東情勢の緊迫化を背景とした原材料価格の急騰や原材料調達リスクに直面し、そのマイナス影響を回避するための機動的な対応が求められる厳しい事業環境となりました。」
原材料調達リスクと中東情勢を背景とする調達環境の不透明性が継続して示された。 - FY2026WorsenedAnnual report
「The petrochemical industry is facing difficulty procuring raw materials and a sharp rise in prices due to the de facto closure of the Strait of Hormuz.」
Regarding the risk of disruptions in raw material procurement and supply chain disruptions, difficulty procuring raw materials arose against the backdrop of the de facto closure of the Strait of Hormuz, increasing uncertainty in the procurement environment. - FY2023-Q1MitigatedAnnual report
「The supply of key raw materials from Shanghai Petrochemical is currently suspended, and the timing of its resumption remains uncertain. However, 東邦化学（上海）有限公司 is procuring the raw materials in question from suppliers other than Shanghai Petrochemical and continuing production. Accordingly, the impact of the suspension of raw material supplies on the financial position, operating results and cash flows for the current consolidated fiscal year is minor.」
Although the supply of key raw materials from Shanghai Petrochemical was suspended, the Shanghai subsidiary continued production by procuring materials from other suppliers, and the impact on the current consolidated fiscal year was described as minor. - FY2022MaterialisedAnnual report
「In addition, 東邦化学（上海）有限公司 receives supplies of key raw materials from Shanghai Petrochemical, and the impact on production activities of any disruption in the supply of raw materials remains uncertain at this time.」
Following the explosion and fire at Shanghai Petrochemical, some utility supplies to the Shanghai subsidiary were suspended, resulting in a shutdown of operations. The impact on the supply of key raw materials was also considered uncertain, and the risk of procurement disruptions and supply chain disruptions materialized. - FY2020First statedAnnual report
「However, production may become difficult to maintain if raw materials become unavailable due to the suspension of production at raw material manufacturers following disasters, accidents or bankruptcies, or due to disruptions or interruptions in supply chains and logistics. In such cases, the Group's operating results and other aspects of its performance may be affected by lower sales resulting from stagnation in production activities and higher cost of sales resulting from surging raw material prices.」
Separate from the risk of fluctuations in raw material prices, the company newly identified the risk of difficulty in procurement caused by disasters, accidents or bankruptcies at raw material manufacturers and by disruptions or interruptions in supply chains and logistics. Countermeasures include multiple sourcing, safety stock, cooperation with manufacturers and research into in-house production of certain raw materials.