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Nippon Seiro Leads Wax Industry with Innovative, Eco-friendly Products

Interview - September 22, 2024

Nippon Seiro, a specialized wax manufacturer, has a remarkable legacy that dates back to its founding in 1927. Under the leadership of Takuya Konno, the company remains a crucial player in the wax industry, producing a wide range of high-quality waxes for diverse applications.

TAKUYA KONNO, PRESIDENT OF NIPPON SEIRO CO., LTD.
TAKUYA KONNO | PRESIDENT OF NIPPON SEIRO CO., LTD.

NOTE: The following interview was held on June 2nd, 2022. At that time Mr. Takuya Konno was the president of Nippon Seiro Co., Ltd. As of July 2024 the current president is Mr. Johei Takimoto.


Can you tell us a little bit about Nippon Seiro? How does the wax industry operate and what are the competitive advantages of your company?

We are a specialized wax manufacturer, and the interesting thing is that there are many more applications of wax other than shoe polish, hair wax, or car wax that consumers do not see, mainly because those applications happen behind the scenes. Wax is, by definition, hydrocarbon composite and consists of a mixture of hydrocarbon molecules containing between 20 and 40 carbon atoms that stays solid at room temperature.

The main characteristics of wax are that it can retain humidity as well as temperature, and it repels water. Also, it can change form from solid to liquid and has electrical insulation properties. These characteristics define its effectiveness in applications. One example might be the coating of a car tyre, with the wax preventing deterioration.

There are so many different applications of wax and the simplest and easiest to see is the lowly candle. The demand for candles is decreasing in Japan, however overseas there is a culture for candle use. We found that even during COVID-19, there was no decrease in demand from overseas markets. Other applications include applying on the surfaces of paper and cardboard boxes to repel water, caramel wrapping paper, paper cups that are more environmentally friendly than plastic ones, food additives and gums. Wax paper is also used in fruits, to cover said fruits and prevent rain damage and retain humidity. In the construction field, wax is used for boards that gather small chips, and in the medical field, it is used for ointments as well as in surgery when slicing up organs. Organs tend to be too smooth and slippery, but by applying wax, you can retain the shape of the organ. For rehabilitation purposes, wax retains heat more than hot water. Casting is another field where wax is heavily used. When casting, you can apply wax on the inside of the cast and you are able to remove the metal very easily. Therefore it is a very indispensable ingredient.

Our waxes are not only fossil fuel-based, but we also produce wax based on plants and other natural resources. Globally, there is a demand for 5 million tons worth of wax, and among that, 4 million are produced using fossil fuels. These waxes are mostly manufactured by fossil fuel distillers or refineries. They produce wax as a by-product - they are not solely focusing on the wax itself. It is more of a side business for them, whereas, for us, we are a specialized wax manufacturer capable of producing high-quality wax with different melting points ranging from 115 degrees Fahrenheit all the way to 240 degrees Fahrenheit. Our competitive advantage over rival companies also lies in our ability to stage this melting point and we are able to produce wax that has melting points in increments of five degrees. We also reduce the amount of oil content in our wax as much as possible, to as little as 0.1% in fact, which when compared to other companies, is a very low percentage of oil.  

 

The chemical sector is the largest industrial consumer of oil and gas, producing 10% of fossil fuel emissions every year. The former Suga administration stated that Japan must go carbon neutral by 2050. Can you tell us more about your biodegradable waxes and what strategies are you employing to reduce your environmental burden?

In order to mitigate the impact on the environment, it is crucial that we get out of this carbon-based society as well as our dependency on fossil fuels. However, as a fossil fuel-based wax manufacturer, we would like to continue to provide high-quality wax to customers as long as there is a demand. At the same time, we are trying to make our fossil fuel-based wax more environmentally friendly by distilling the wax and reducing the oil content. By doing so, we are able to attain this biodegradable quality. Having said that, wax derived from fossil fuels does have an oil residue. In the past, this residue was used to operate boilers and generate thermal power, however, in Japan, this is no longer acceptable. Currently, this residue is now being used as fuel for ships. In 10 years, we aim to not only make fossil fuel-based wax more environmentally friendly, but to also diversify and produce synthetic and plant-based wax more often. An example can be seen in rice-based wax. 

We are always striving to meet the requirements of our customers, which in this day and age is becoming ever more environmentally focused. With that consideration, rice wax development has been a key focus for us and may even replace fossil fuel wax entirely.

 

Due to environmental regulations, many fields are switching from solvents to water-based products. Can you tell us what potential wax emulsions have and what opportunities does the switch to wax emulsions present for your company?

Wax emulsion has a particularly high demand in the field of construction for use as a spray for surfaces of buildings. This wax emulsion is half water and comes in a liquid form, so it is very easy to use. Despite there being high demand, we are not able to meet that with our current production capacity. We are trying to increase our production capacity and at the same time, major fossil fuel refineries are actually reducing their production capacity of wax. There is a lot of demand coming in for our company, and we see this as an incredible business opportunity. 



Clearly R&D plays a key role in your business and you have developed wax emulsions, biodegradable waxes, as well as other innovations. Can you elaborate on your R&D strategy for us and are there any products that you are currently working on that you would like to showcase?

Wax is usually categorized into either natural or synthetic wax. Natural wax includes fossil fuel and rice wax, whereas synthetic would include emulsions.

Currently, 90% of our business depends on fossil fuel wax, and while our customers will depend on our waxes going forward, we want to diversify by conducting research and development on rice wax and other waxes from non-fossil fuel sources so that we can continue meeting our customers' needs while also reducing dependency on fossil fuels. However, not all fossil fuel-based waxes can be replaced by non-fossil fuel sources so there will always be a need for fossil fuel-based waxes.

As I mentioned before, the annual demand for wax is 5 million tons, whereas oil and fossil fuels are 5 billion tons. It is only one one-thousandth of the demand; however, the demand is decreasing due to environmental concerns. Fossil fuel refineries are shutting down plants and in the near future, ingredients for wax may be hard to procure. We need to expedite our process of diversifying our portfolio.


When it comes to hydrocarbons, it is very difficult to mix and create chemical reactions. At Nippon Seiro, you utilize a very unique manufacturing process that allows you to create a variety of oxidized waxes with different melting points, degrees of saturation, as well as reaction selectivity. Can you tell us more about your manufacturing process and how were you able to overcome the difficulty of causing chemical reactions with saturated hydrocarbons? 

Our uniqueness lies in having stepped melting points separated by only five degrees Fahrenheit. Also, we can reduce the amount of oil content considerably. Paraffin wax itself is non-polar, however, we can give it an attribute of polarization.

 

Can you tell us about any partnerships you have conducted and if you are looking for any partnerships in overseas markets?

First and foremost, we want to pursue partnerships in collaboration with wax ingredient producers, especially for synthetic as well as rice wax. In order for us to increase our production and provide a stable supply of our synthetic and rice wax, we have to find good partners.

In terms of domestic and overseas sales, we have agents in different localities. Through our local partners, we want to continue collaborating and partnering.



In 2014, you began operations in Thailand, and your products are exported to over 30 countries around the globe. Moving forward, which countries have you identified for further expansion and what strategies will you employ? Could you elaborate more on your international business strategy?

The Thailand factory established in 2014 focuses on tyre rubber wax solely because Thailand and Indonesia have emerged as centers for car manufacturing. By having a local factory, we can reduce the cost, as well as have a sustainable supply of this wax for car manufacturers. With the ongoing shift to EV, the engines may change, but the tyres will remain the same, and for that reason, this wax will remain a major focus. 

We do not have a specific international strategy, but we are trying to focus on rice wax, which uses rice bran as the key ingredient. Asian countries, including China and Thailand, produce large quantities of rice and so a factory in that region that focuses solely on rice wax would make sense. Before we make moves however, we first want to focus on the domestic market. We are seeing an increased interest from overseas in our rice wax and so we see a lot of potential in the future.

 

Imagine we do this interview again seven years from now when your company celebrates its 100th anniversary. What would you like to tell us? What are your goals and dreams for the next seven years?

There are many customers who consider our wax as an indispensable part to sustain their business, so it is our mission and responsibility to keep our business going and ensure them with a stable supply of high-quality wax products. At the same time, our fossil fuel waxes may not be considered sustainable and environmentally friendly, so there may come a point in time where regulation will force our customers to look for other similar products. In order to avoid any disruption or confusion, we are expediting our research and development of rice and synthetic waxes as a replacement for fossil fuel waxes. With our expertise and wax production, we would like to make this rice wax applicable to all types of industries and be the forerunner globally for wax applications.

Obviously, in seven years' time, this process will not be complete, however, I hope that if you come back for another interview, at that time you would see a portfolio consisting of more diverse types of natural and synthetic waxes supplying our customers in a stable manner.

 


For more information, visit: https://www.seiro.co.jp/en/

 

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