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Latest update: 26/02/2020 10:25:08

Shion Co., Ltd.

Increasing the use of paints made of natural materials in and out of the country

We manufacture and sell paints made of natural materials, which are used for protecting wood indoors and outdoors. We meet various customer needs, and supply high-mix small-lot products. We manufacture custom-made colors for order sizes from just one can, and can manufacture products in 15 minutes after receiving an order. For outdoor usage, verification tests have proven weatherability without loss of color for four years. We will expand usage in and out of Japan amid growing demand for houses made of natural materials including solid wood indoors and outdoors, such as wood deck.


Sales Pitch

Home-made U-OIL natural coating for wooden parts and home-made Kimamorimasenka advanced coating for wooden parts
Our products feature excellent safety as wood coatings.
We use natural materials such as linseed oil and  natural pigment.
Our products have excellent workability.
Wood coating is subject to issues such as slow drying, difficult coloring, and small coating area. All these issues have been solved, so we receive an extremely small number of complaints about products, although people say there are actually many complaints about wood coating.
Excellent advanced functions such as weather resistance and flame resistance
Our products are superior in outdoor weather resistance (prevention of deterioration by rain or ultraviolet rays), which is a must when wooden parts are used. We have a lineup of products with flame resistance as a new function.

Other presentation

[Company strength]
We are one of few domestic manufacturers having know-how on the development, manufacturing and sales of natural paints which are a niche market in Japan, but a large market in the world.
We specialize in small-lot high-mix manufacturing, by subdividing customer needs, unlike the mass-production model of existing paint manufacturers.
Specifically, we manufacture custom-made colors for order sizes from just one can without additional cost, which we can normally do within 15 minutes after receiving the order. Therefore, inventory of finished goods is almost zero.
Furthermore, we supply OEM and PB products to builders, etc. who conduct FC deployment, thereby keeping more customers.

[Business description]
1. We manufacture and sell natural paints, which are made of natural materials and are used for protecting wood indoors and outdoors.
2. The demand for natural houses made of solid wood materials has expanded in recent years, for both indoors (floor, podium) and outdoors (wood deck), amid increasing utilization of domestic timber.
3. As our natural paints suit owners who appreciate a safe living environment, we sell approximately 90% directly to builders who use them on site.
4. The natural paint market is a niche market in Japan, but there is a large market in the world. Many competing products are made in Germany. Our company is one of very few manufacturers of domestic natural paints.

Manufacturing of natural paints for wood protection

[Strength of products/technologies]
1. Our main product, U-OIL, was developed jointly with one of the country’s leading builders in natural material construction.
2. We released U-OIL which provides both the ideal safety of natural paint and workability required on site.
3. We were highly evaluated by the builder who jointly developed U-OIL, for overcoming all weaknesses of German-made products, and we have supplied U-OIL to the builder under PB since 2012 (annual sales of approximately 6 million yen).
4. In addition, our “U-OIL for outdoors”, which was released in 2014, uses a natural material and yet tests proved its exceptional weatherability without loss of color outdoors for approximately four years.

[Representative's message]
We are proud of U-OIL which we released in 2012 for being superior to competing Germany-made products in terms of quality, price and aftercare.
We will expand sales steadily and gain the trust of conservative builders and the coating industry, while boosting the brand by using mass media.
In addition, we have started selling building materials and paints through trading companies, besides direct sales, to raise awareness of U-OIL.
We will participate from this year in “Japan Home Show” which is the largest building material exhibition in the country, as an opportunity to expand in Japan and overseas.

[Company structure for market development/overseas expansion]
Our president, who is also a developer, handles key sales for new customers unlike sales reps who have no development experience and handle competing German-made products.
We will thereby acquire the trust of customers and provide custom-made products for each customer, if necessary.
We will actively hire new staff with English skills, and train them through job rotation in preparation for selling U-OIL throughout Japan and overseas.
With respect to overseas deployment, we will first work with trading companies to identify and solve the issues necessary for creating demand.

[Market share/Ranking]
The natural paint market is estimated to be worth 8 billion yen based on past documents, since there are few recent documents (source: Functional paint - Present status of coating and future prospects, 2005 Version). We have acquired a market share of approximately 0.4% in two years with U-OIL which we introduced in 2012.

[Awards and media coverage]

Nikkei Trendy “New product introduction” (April issue)

[Transaction form]
Direct sales

[Main Clients / Business History (domestic)]
Sumitomo Forestry Co., Ltd. (for balsa block coating, since 2014); Itoki Corp. (office furniture, since 2015); Okuta Corp. (OEM products, since 2012)

[Main Clients / Business History (overseas)]
Sumitomo Forestry Co., Ltd., Itoki Corp., Okuta Corp., Yamashita Co., Ltd., General Incorporated Association HBS Taiju no Kai, and approximately 300 builders in the country, who handle natural material houses

[Exhibition History/Information]
Participation in Eco Products jointly with FSC Japan (2014); Participation in Eco Building Material Exhibition jointly with T.S.C. Co., Ltd. (2015)

This company is recommended by the following support organizations.

Marketing Support Department, SMRJ
Tohoku Head Office, SMRJ