Major Products: Broad product portfolio with capabilities in flexographic packaging inks; plastic packaging and mono-materials; paper packaging; compostable and recyclable packaging solutions; corrugated packaging inks; adhesives for packaging; coatings for packaging; folding carton inks; web heatset and sheetfed offset; publication and packaging gravure; news ink and publication coldset; energy curable inks and coatings; screen inks; inkjet materials; digital textile inks; overprint varnishes; specialty coatings; effect inks; security inks and coatings; printing consumables; specialty polymers and pigments for inks, plastics, paints, coatings; specialty pigments for cosmetics; electronic materials; functional products; and products for the automotive, agricultural and healthcare industries.

No. of Employees: 22,255 as of December 2023.

Comments: DIC Corporation is the world’s largest ink manufacturer, with more than 170 companies, including Sun Chemical, its North American/EMEA subsidiary. In 2024, DIC Corporation’s consolidated net sales increased 3.1%, to ¥1,071 billion ($6.94 billion). Operating income rose 148.1%, to ¥44.3 billion
($290 million).

DIC had an excellent year in the Packaging & Graphic segment, as sales increased 5.1% to ¥569.8 billion ($3.69 billion). Segment operating income increased 52.8%, to ¥33.6 billion ($220 million). Color & Display segment sales increased 13.1%, to ¥257 billion ($1.67 billion). The segment reported an operating loss of ¥0.3 billion ($19 million).

“In the area of packaging inks, used chiefly on packaging for food products, shipments in Japan declined, as rising prices continued to dampen demand for consumer goods, but sales were buoyed by efforts to pass on elevated costs by adjusting sales prices, and by increased sales overseas, underpinned by a revival in demand for consumer goods in the Americas and Europe, as well as by efforts to cultivate customers in Asia, which boosted shipments,” DIC reported in its annual report.

“Despite expanded shipments in Asia, owing to the cultivation of customers and other factors, sales of publication inks, which center on inks for commercial printing and news inks, fell as dwindling demand pushed shipments down in Japan, as well as in the Americas and Europe,” the company added. “Sales of jet inks, used in digital printing, climbed sharply as customers completed measures to resolve surplus inventories, spurring brisk demand and elevated shipments.”

Following the appointment of Takashi Ikeda as president and CEO in January 2024, DIC revised the company’s long-term management plan, DIC Vision 2030, in February. In line with these revisions, DIC reformed management and operations on multiple fronts simultaneously—sharply reallocating resources to restore earnings, accelerating the launch of next-generation growth businesses, restructuring recently acquired European and North American pigment operations, and exiting unprofitable or non-core activities.

In terms of cash inflows, the company generated ¥24 billion ($160 million) by implementing asset reduction measures aimed at improving capital efficiency, including the transfer of unprofitable and non-core businesses, reductions in cross-shareholdings, and the sale of factory land resulting from production rationalization.

Conversely, in terms of cash outflows, DIC is holding off on further large mergers and acquisitions and is instead focusing its resources on improving the performance of existing acquired businesses, such as the global pigment business acquired from BASF and the Canadian photoresist polymer manufacturer PCAS Canada (now IDC).

“Sun Chemical, which oversees operations in Europe and North America, played a pivotal role, with unified operations demonstrating the underlying strength of the world’s largest ink producer,” said Masamichi Sota, president, Packaging and Graphic Business Group, and GM, Printing Material Products Division, DIC Corporation. “This serves as a reminder to stakeholders that printing inks remain essential products today.”

Sustainability is a core principle at DIC, and within the Packaging & Graphics Division, DIC completed the construction of a de-inking recycling facility for polystyrene (PS)—the raw material for colored and patterned foam food trays—at its Yokkaichi Plant, located in Yokkaichi City, Mie Prefecture, Japan.

Within the Color & Display Division, DIC advanced a significant restructuring and efficiency program, centered on the European and North American pigment operations acquired from BASF in July 2021, including the consolidation of several large production sites.

Sota observed that DIC regards the electronics field as a growth market and has defined semiconductors, communications, devices, batteries, etc., as an area the company is calling “Smart Living.” DIC launched its new Chemitronics business within the Functional Products Division in January 2024 and is now working to integrate manufacturing, sales, and technology.

“Chemitronics merges chemicals and electronics to accelerate the commercialization of high-value, functional materials that exhibit electrical and electronic properties, and to monetize them in semiconductor and advanced component markets,” Sota said.

The impact of tariffs is a topic of concern for the industry. In May 2025, Sun Chemical announced a surcharge for impacted color materials products, including pigments. Sota pointed out that DIC is well prepared for any changes in tariffs.

“Sales in the United States account for approximately 15% of the DIC Group’s consolidated net sales, primarily comprising inks and pigments,” said Sota. “The company’s ink business is fundamentally based on US production. However, DIC expects import duties on raw materials sourced from China and cross-border flows with Canada and Mexico to raise production costs.

“In the short term, the company is relocating some manufacturing to the US to mitigate production cost increases,” he added. “Some increases will be absorbed, and others will be passed to customers via price adjustments. In the medium- to long-term, DIC plans to mitigate tariff exposure by localizing more raw material procurement and expanding in-house production within the United States.”

Sota also noted that DIC operates pigment manufacturing facilities in the United States, with approximately 50% of the pigment products sold in the United States manufactured domestically.

“Although the company manufactures pigment products in the US, the impact of tariffs on raw materials and other imported products from China and other countries remains unavoidable and will increase costs,” said Sota. “DIC reluctantly announced a tariff and surcharge price revision in May but is working to mitigate future tariff impact by using the DIC Group’s local resources to improve the supply chain and lobby government agencies for duty suspensions on raw materials not made in the US.”

As for the rest of 2025, Sota noted that DIC initially positioned fiscal 2025 as a year of continuing recovery from fiscal 2024, and first-quarter results were significantly higher than those of the fiscal 2024 first quarter.

“However, since April, DIC believes that President Trump’s tariffs have introduced significant uncertainty worldwide,” Sota added. “Because the impacts of tariffs can vary widely by business and product, DIC believes it is critical to assess each business line individually, while securing an overall recovery.

“As DIC expects tariff-related disruptions to persist throughout fiscal 2025, the outlook is less than rosy. However, DIC will continue to closely monitor supply-chain developments, pursuing a dual-track strategy that employs both standard contingency plans and non-standard measures, such as network reconfigurations and restructuring to meet the company’s annual objectives,” Sota said.

“DIC expects demand for essential, locally produced items, such as food packaging inks, to remain resilient, providing stable earnings in those areas,” Sota concluded. “Conversely, businesses and products that rely on cross-border flows will likely require closer monitoring. Here, DIC will reconsider production and procurement networks when necessary.”

Major Products: Broad product portfolio with capabilities in flexographic packaging inks; plastic packaging and mono-materials; paper packaging; compostable and recyclable packaging solutions; corrugated packaging inks; adhesives for packaging; coatings for packaging; folding carton inks; web heatset and sheetfed offset; publication and packaging gravure; news ink and publication coldset; energy curable inks and coatings; screen inks; inkjet materials; digital textile inks; overprint varnishes; specialty coatings; effect inks; security inks and coatings; printing consumables; specialty polymers and pigments for inks, plastics, paints, coatings; specialty pigments for cosmetics; electronic materials; functional products; and products for the automotive, agricultural and healthcare industries.

No. of Employees: 22,255 as of December 2023.

Comments: With more than 170 companies, including Sun Chemical, its North American/EMEA subsidiary, DIC Corporation is the world’s largest ink manufacturer. In 2023, DIC reported $4.1 billion in graphic arts sales, with consolidated sales of $6.7 billion.

“DIC’s Packaging & Graphic Business Group achieved reasonable results in fiscal 2023 despite not reaching the budget,” said Masamichi Sota, president, Packaging and Graphic Business Group, general manager, Printing Material Products Division, DIC Corporation. “Though sales volumes continued to lag, as raw material prices began to stabilize beginning around Q4, DIC was able to secure a modest level of profitability.”

To prepare for the future, DIC Group’s first long-term management plan, DIC Vision 2030, was launched in 2022. The overall goal is “to improve the human condition by safely delivering color and comfort for sustainable prosperity – Color & Comfort,” and DIC is making strides toward its goal

“In 2023, the second year of this initiative, we actively transformed our business portfolio, promoting greater sustainability to contribute to the world while addressing long-term issues, including achieving carbon net zero,” said Keisuke Miyake, manager, Corporate Communications Department, DIC Corporation.

Amid an evolving business landscape, DIC acquired PCAS Canada Inc., now known as Innovation DIC Chimitroniques Inc. (IDC), which delivers photoresist materials with superior purity and low metal content required for use in semiconductor photolithography. This strategic move has not only expanded its product portfolio in semiconductor manufacturing processes but has also bolstered DIC’s presence in the digital sector.

“Here, DIC is hard at work developing leading-edge semiconductor photoresist polymers,” said Miyake. “By combining new IDC manufacturing technology with existing DIC strengths in synthesis technology, DIC aims to meet the needs of the growing semiconductor industry, where technological innovation continues at a breakneck pace, contributing to ongoing digital innovation.”

DIC India successfully completed the construction of a new ink factory in the Saykha Industrial Zone at Saykha in Bharuch District, Gujarat. This facility, with a production capacity of 10,000 tons, serves as a mother plant for toluene-free liquid ink products, catering to the burgeoning Indian packaging materials market.

Similarly, in China, DIC China is in the process of constructing a new ink factory in the Dongguan Chemical Industry Zone in Guangdong Province. This factory, once operational, will serve as a key hub for supplying ink products in Southern China, further strengthening DIC’s market presence.

In response to the evolving business climate, DIC proactively adjusted its strategies.

“DIC observed a slowdown in demand for semiconductors and displays in the digital area, particularly in the European Union where challenges persist,” Miyake said. “Under these circumstances, DIC’s Packaging & Graphic Business Group – focused largely on printing inks – demonstrated resilience by expanding packaging ink sales in each region, implementing appropriate pricing adjustments and diligently controlling costs.”

Chris Weighill, head global segment Inks, Color Materials, observed that conducting business continues to be challenging in turbulent times.

“Observing major players in the market announce insolvency is indicative of the financial state of affairs for the entire industry,” Weighill said. “While the economic environment is challenging for all players in the pigment market, competition remains strong. Peaks in inflation and energy crises have eased over the past months, yet several geopolitical conflicts across the globe arose or continued. Supply chains remain a fragile element in a globalized world – as is evident through the Red Sea crisis – causing unexpected interruptions to a steady supply for customers.

“The current level of product consumption is not at a normal or desired level, but we believe we have crossed the bottom of a valley, as demand has now begun to increase,” Weighill added.

Jim Felsberg, director product management, packaging inks, Packaging & Graphics Division, said that 2023 saw better raw material stability for Sun Chemical.

“The majority of the challenges we experienced through the global supply chain lessened,” said Felsberg. “With a major focus on forecasting, Sun Chemical was able to focus on servicing our customers to the needed volumes to support their growth targets.”

Felsberg added that 2023 was an exciting year for new technology introduction and market transition.

“As we enter 2024, Sun Chemical is well suited to meet the ever-changing market demands with a broad portfolio of products,” Felsberg noted. “The synergistic focus on inks, coatings and adhesives that work together allows Sun Chemical to uniquely meet the needs of the packaging market.”

Sustainability initiatives remain a high priority at Sun Chemical, as demonstrated by many accomplishments over the past year.

“We continued to expand our integrated portfolio of environmentally friendly packaging solutions according to our ‘5R’ approach to sustainability—Reuse, Reduce, Renew, Recycle, and Redesign. Our products’ efficacy and success has been reinforced by many third-party certifications, accolades and awards,” said Nikola M. Juhasz, Ph.D., global technical director, sustainability for Sun Chemical.

Highlights from the year include Sun Chemical’s PrintWeek 2024 Packaging Innovation Award, won in collaboration with leading packaging solutions provider Qualvis. The award-winning project focused on redesigning packaging for Qualvis’ customer Whitakers Chocolates, eliminating non-recyclable elements while ensuring product integrity and shelf-life preservation for their packaging. The concept enabled transformation of a 55 percent plastic package into a highly recyclable, lightweight and fully fiber-based solution.

Sun Chemical also received a Sustainability Excellence award from the Flexographic Technical Association for SunUno Solimax AP, a TÜV OK-Compost certified multi-purpose ink series that enhances sustainability for both packaging and converter operations.

Sun Chemical, as part of the DIC Group, successfully validated its greenhouse gas emissions reduction targets with the Science Based Targets initiative (SBTi), a further reflection of the organization’s commitment to sustainability leadership. The company also earned a silver rating from EcoVadis.

Mehran Yazdani, president, Global Packaging and Advanced Materials, Sun Chemical said that Sun Chemical has seen continued growth in digital printing over the past year, not only in the coding/marking, textiles and labels markets, but also through inroads in flexible packaging and metal packaging.

“Economics and flexibility are the main drivers for digital printing,” Yazdani noted. “Being able to print on demand, with minimal waste and inventory, enables printers to meet challenging customer demands in the most efficient and sustainable manner. A notable development has been the introduction of hybrid presses that merge the adaptability of digital printing with the high-speed capabilities of traditional analog presses.”

In an important move, in October 2023, DIC announced personnel changes, appointing a new representative director, president, and executive officer, with Takashi Ikeda assuming the helm of DIC Corporation in January 2024.

“Beginning in polymer research, Mr. Ikeda has built a career untethered to a particular department or organization, engaging in multiple aspects of the business, from product development to business planning, as well as new business development and color consulting,” Miyake said. “Under Ikeda’s direction, DIC will quickly pivot to transforming its business portfolio to generate profits and proceed with building a strong business organization more resilient to macroeconomic shocks.”

Miyake noted that DIC’s Color & Display Business Group plans to implement structural reforms, including restructuring and reorganizing production bases. DIC expects the pigment business to recover based on these actions.

DIC’s Functional Products Business Group sees profits growing with increased volumes from a recovery in the demand for electronics and automobile-related products. Conversely, risks include the economic trends in Europe, and DIC believes the pigment business, which accounts for a large portion of this business, is particularly susceptible.

“DIC expects to achieve stable profits if the prices for raw materials do not increase,” Sota noted. “DIC also expects the importance of environmentally friendly products related to recycling to continue to increase.”

Major Products: Broad product portfolio with capabilities in web heatset and sheetfed offset; publication and packaging gravure; news ink and publication coldset; flexographic packaging inks; corrugated packaging inks; energy curable inks and coatings; screen inks, inkjet materials, adhesives for packaging, overprint varnishes, specialty coatings, effect inks, security inks and coatings, printing consumables, specialty polymers and pigments for inks, plastics, paints, coatings, and cosmetics.

No. of Employees: 22,743 as of December 2022.

Comments: The world’s largest ink manufacturer, DIC Corporation has more than 170 companies, including Sun Chemical, its North American/EMEA subsidiary. DIC reported $4.1 billion in graphic arts sales in 2021, with total sales of $8.1 billion.

DIC Corporation made significant strides towards a sustainable future in 2022 with the launch of the company’s long-term management plan, DIC Vision 2030, which was inspired by a revised corporate vision to “improve the human condition by safely delivering color and comfort for sustainable prosperity.” In the first year of DIC Vision 2030, DIC proactively worked toward a business portfolio transformation that promoted sustainability strategies throughout operations, products, and services, effectively contributing to efforts to enhance social utility, including progress towards reaching carbon net zero.

Building upon the strategically successful acquisition of the Colors & Effects pigment business in 2021, DIC continued to leverage mergers and acquisitions as a way to qualitatively enhance operations in the three business segments—Packaging and Graphics, Color and Display, and Functional Products.

The acquisition of Italian adhesive polymer manufacturer, SAPICI, and Chinese coating resin manufacturer, Guangdong TOD, in 2022, established a basic framework through new technology and expanded production capacity.

“The 2022 business environment presented unique challenges, exemplified by the ongoing global pandemic as well as heightened geopolitical instability, increasing the costs of raw materials, logistics and utilities around the world, and necessitated across-the-board price hikes,” said Keisuke Miyake, manager, Corporate Communications Department, DIC Corporation. “The second half of 2022 saw lagging demand for the semiconductors and thin-film-transistor liquid-crystal displays vital to digital—one of the three key areas in which DIC is uniquely positioned to contribute to society: Green, Digital, and Quality of Life (QOL).”

In 2022, the packaging materials market lagged significantly, especially in the People’s Republic of China (PRC) where typically the nation displays high demand for packaging materials.

“While demand for stay-at-home spend persisted, pandemic-related restrictions on the movement of both people and goods dramatically reduced overall demand for packaging materials,” Masamichi Sota, president, Packaging & Graphic Business Group, and general manager, Printing Material Products Division, DIC Corporation, observed.

“Moreover, as raw material costs soared globally, 2022 produced price gaps that were difficult to pass on through product pricing,” added Sota. “Beginning around the fourth quarter, some raw material prices began to fall due to a drop in crude oil prices; however, some regions experienced rising prices for titanium oxide and other raw materials, further widening price gaps. Ongoing hostilities in Ukraine reduced demand in Europe amid rising utility costs, making it a difficult year.”

Suzana Rupcic, head of global segment management merchant inks, color materials for Sun Chemical, pointed out that acquisitions and consolidation among smaller and major pigments players have been characteristic of the past years.

“Since the worldwide outbreak of COVID, the pigment market has experienced many of the same challenges as other sectors over the past couple of years, including unforeseen demand changes, supply chain interruptions and – since this year – rising inflation,” Rupcic noted.

“After slowly recovering from the pandemic, the pigment market continues to operate under cost pressure, which impacts the entire printing value chain,” Rupcic continued. “Nonetheless, despite the recent challenges, a general stabilization of raw material supply availability can be observed. Like for other industries, the upcoming developments on inflation and recession will determine growth rates in 2023 and onwards. In general, we anticipate that the global pigments market will grow at least at GDP rate.”

Major Products: Broad product portfolio with capabilities in web heatset and sheetfed offset; publication and packaging gravure; news ink and publication coldset; flexographic packaging inks; corrugated packaging inks; energy curable inks and coatings; screen inks, inkjet materials, adhesives for packaging, overprint varnishes, specialty coatings, effect inks, security inks and coatings, printing consumables, specialty polymers and pigments for inks, plastics, paints, coatings, and cosmetics.

Number of Employees: 22,474 as of December 2021.

Comments: DIC Corporation is the world’s largest ink manufacturer, with more than 170 companies, including Sun Chemical, its North American/EMEA subsidiary. DIC reported $4.1 billion in graphic arts sales in 2021, with total sales of $7.8 billion.

Masaaki Nakagawa, GM, Corporate Communications Department, DIC Corporation, reported that the packaging market performed well in 2021 due to the economic recovery and sales increase.

“In commercial printing applications, while other companies struggled to supply products due to the effects of the pandemic, the DIC Group, which continued to provide stable supplies to its customers, increased its share in Europe and the United States,” Nakagawa added. “By region, the Chinese market grew much faster than in 2019.”

Masamichi Sota, president, Packaging & Graphic Business Group, GM, Printing Material Products Division, DIC Corporation, noted that DIC has experienced complex business dynamics in 2021, with multiple variables playing a part in business growth/decline.

“COVID-19, raw material shortages, surges in raw material costs, global logistics turmoil, and other factors have played significant roles, impacting our operations,” said Sota. “China showed strong signs of recovery in the second half of the year. India, Indonesia and Vietnam continued to drive growth.”

Sota observed that packaging materials essential for daily living stayed strong, while publication continued its declining trend. Sustainability continues to be an important emphasis for DIC.

“Sustainability is a key driver for our customers and brand owners and DIC continues its efforts to develop innovative sustainable solutions for its customers,” Sota added.

Nakagawa said that the market remains unstable and difficult to predict.

“Despite the consolidation of sales in the acquired Color Materials business and a sharp rise in crude oil prices and efforts to respond to price hikes in raw material and fuel prices in line with geopolitical risks, the market was difficult due in part to stagnant shipments caused by the impact of lockdowns,” Nakagawa added. “This isn’t a normal situation at this point in the year in 2022.”

“Business conditions still vary by country, where COVID-19 lockdowns, logistics availability, and cost increases have different impacts to the operation. Another common challenge we face throughout the region includes the increasing costs associated with raw materials, logistics and other costs,” Sota added.

Jim Van Horn, Sun Chemical’s chief administrative officer, general counsel and secretary, reported that packaging market demand remained resilient in 2021.

“The extraordinary pace of inflationary cost movements and global geopolitical events over the past year have also caused sustained pressure on logistics availability and have increased raw material costs to unprecedented levels,”

Van Horn noted.

“While our global reach and ability to have multiple suppliers provide key materials is a strategic approach that is certainly helping secure the raw materials needed to maintain production, the costs to secure those materials, manufacture our products, and deliver them to our customers has risen dramatically,” he added. “Global events will continue to influence our strategies and actions as we evaluate every opportunity to mitigate these inflationary events and deliver on the expectations our customers have for reliable supply of our products to their facilities.”

In June 2021, DIC closed its acquisition of Germany-based BASF’s global pigments business Colors & Effects (hereinafter, the Color Materials business), initially agreed upon in August 2019. DIC is now integrating the Color Materials business with the DIC pigments business.

“The Color Materials business is globally based, mainly in Europe, and a world leader in luxury pigments, effect pigments for cosmetics, and special inorganic pigments,” Nakagawa said. “The Color Materials business portfolio of technologies, products, production facilities, supply chains, and customer services does not overlap with that of the DIC Group and is thus highly complementary.”

Sota noted that DIC continued its focus on sustainable packaging solutions through various technologies.

“The introduction of inks, adhesives and functional coatings that enhance the recyclability of the package have been a key area of focus,” Sota continued.

Sun Chemical continues to prioritize sustainability as an imperative across its organization, in cross-industry collaborations, in its operations, and in its products and services.

“Collaborations, both private industry partnerships and wider initiatives through leading cross-industry associations dedicated to the sustainability of packaging, continue to be a critical element of Sun Chemical’s sustainability strategy,” said Nikola Juhasz, global technical director of sustainability, Sun Chemical.

Juhasz noted that minimizing the environmental impact of operations is another guiding principle.

“We have been tracking key metrics, such as energy and water consumption, waste generation and disposition, and CO2 emissions for many years, with the aim to improve continuously, year on year,” Juhasz said. “Together with our parent company, the DIC Corporation, Sun Chemical announced a commitment to reach net zero CO2 emissions by 2050, and to achieve a 50% reduction (relative to 2013) by 2030.

“For products and services, Sun Chemical has a substantial annual R&D investment of $100 million, which is dedicated more and more to supporting sustainability-driven initiatives specifically,” she added. “This means bringing products that support packaging lightweighting or simplification, that enable recyclability, repulpability, and/or compostability, and that preserve virgin resources through use of biorenewable and/or recycled content.”

For example, Sun Chemical has continued to advance its portfolio of recycle-friendly washable ink solutions, including a second generation flexo- and gravure-capable solvent-based technology, SunSpectro SolvaWash FL/GR, which received an honorable mention for Innovations in Sustainability during the 2022 Flexographic Technical Association’s (FTA) Sustainability Excellence Award competition.

In addition to the solvent-based products, a UV flexo product line, SolarFlex CRCL, is a commercial, water-based offering coming soon. Further product series similar to SolarFlex CRCL, including for offset, are in planning.

Raw materials continue to be a major concern for the ink industry, and Sun Chemical is no exception. Sota noted that raw material availability and stability in pricing continues to be a challenge.

“The Ukraine/Russia situation, COVID-19 outbreak in China, and increasing oil prices are all challenges that have had a devastating impact to the supply chain,” added Sota. “We expect the situation will continue for at least the short-term future. Our supply chain and technical team have worked tirelessly to continue supply, seek alternate materials, and keep our customer demands fulfilled.”

Jeffrey Shaw, chief supply chain officer at Sun Chemical, noted that prices for most raw material categories have been continuing to escalate at unprecedented levels.

“The escalation has been driven by petrochemical feedstocks reaching historical record levels in some cases,” said Shaw. “Feedstock volatility coupled with supply constraints have led to extreme pricing initiatives in many markets. Oil prices and overall inflationary pressures in all countries are big drivers for these pricing increases.

“In addition to petrochemical-based price increases, other markets are increasing at similar trajectories such as titanium dioxide and nitrocellulose. These markets are impacted by geographical supply disruptions and increased demand as well as global logistics challenges,” Shaw added.

Shaw noted that global transportation and logistics, including over-the-road carriers, ocean freight carriers, warehouse and distribution center providers, are all constrained by equipment availability, drivers, and general labor shortages.

“Due to the recent COVID-19 shutdowns in China, freight rates have stabilized; however all-time high diesel fuel costs are more than offsetting these flat freight rates,” he reported. “Port congestion remains an issue and has generated significant delivery delays as containers are not able to be released in a timely manner. Frequent communication, data sharing, and lead time management remain critical in order for our fully integrated supply chain to be effective to meet customer demand. We have also diversified our supply base and expanded our product portfolios to supplement our traditional supply strategies.

“As we have all seen around the world, these supply chain challenges have remained persistent,” Shaw concluded. “Some headwinds are constant while others new ones occur daily. Oil prices, Russia’s war with Ukraine, inflation, employment rates, new supply chain legislation signed recently in the US, port congestion and ocean container availability, and potentially different COVID variants will all impact our supply chains in the future. Supply chain stabilization will take some time, and the issues noted will likely occur through the first half of 2023.”

As a result, Nakagawa said that the outlook for the second half is uncertain due to geopolitical risks, soaring raw material and fuel prices, reduced automobile production, and more.

“We will work to secure profits by continuing to pass on higher raw material and fuel prices,” added Nakagawa.

Major Products: Broad product portfolio with capabilities in web heatset and sheetfed offset; publication and packaging gravure; news ink and publication coldset; flexographic packaging inks; corrugated packaging inks; energy curable inks and coatings; screen inks, inkjet materials, adhesives for packaging, overprint varnishes, specialty coatings, effect inks, security inks and coatings, printing consumables, specialty polymers and pigments for inks, plastics, paints, coatings, and cosmetics.

Number of Employees: 20,242 as of December 2020

Comments: With more than 170 companies, including Sun Chemical, its North American/EMEA subsidiary, DIC Corporation is the world’s largest ink manufacturer. DIC had a solid year in graphic arts, with sales from its Packaging & Graphic and Color & Display divisions totaling $4.9 billion (¥532.8 billion), which was flat compared to the year before, a good result considering the COVID-19 pandemic.
Masamichi Sota, president, Packaging & Graphic Business Group, GM, Printing Material Products Division, DIC Corporation, noted that the impact of COVID-19 varied widely by country.

“While China recovered sharply after Q2, returning to normal after Q3, India and Pakistan were greatly impacted by infections and the lockdown, followed by Indonesia and the Philippines. Conversely, Vietnam and Taiwan saw relatively low impacts,” Sota observed.

“As infections grew, we were able to constantly supply the market with DIC packaging materials essential for daily living, thanks to the resilience of the robust Asia-Pacific supply chain established through many years of diligence,” added Sota. “I’m proud of DIC’s performance across the board thanks to brilliant management in each country. While demand for packaging materials was relatively unaffected, publishing-related material sales fell sharply, especially for newspaper inks. Although the situation is still unpredictable for some countries, we continue to supply high-quality products to our customers in each country while ensuring the safety of employees.”

Jim Van Horn, chief administrative officer, general counsel and secretary for Sun Chemical, reported that like most other companies during this time, Sun Chemical has been heavily impacted by COVID-19, not just due to changes in the markets served, but also changes in how the company serves those markets.

“We believe that businesses continue to search for the right way to serve and drive value to their customers, and keep their employees safe, productive and engaged,” said Van Horn. “Our talented and dedicated employees are working hard, either at our manufacturing plants, our labs, or remotely from their homes to make sure that we continue to provide the quality products and services that customers have come to depend upon from Sun Chemical.”

DIC and Sun Chemical reported numerous highlights during the past year. DIC obtained biomass certification for gravure inks for general-purpose film surface printing, shrink film and paper, and saw good results in antibacterial varnish for film surface printing for the individual packaging of antibacterial masks.

“Over the past year, DIC Packaging & Graphic Division made a major shift towards greater sustainability,” Sota noted. “In Japan, DIC has converted most of its gravure ink products to biomass, and widely deployed barrier coating agents that complement the barrier function of mono-material packages and PASLIM – an adhesive with added barrier properties – throughout Asia. In terms of new technology, DIC commenced demonstration experiments such as film de-inking and chemical recycling. In China, DIC introduced water-based gravure inks for flexible packaging.”

Throughout the past year, Sun Chemical has placed greater emphasis on sustainability, introducing a Corporate Sustainability Committee to further strengthen its approach to addressing the sustainability needs of the packaging industry.

“Additionally, along with DIC, we’ve introduced what we call ‘the five Rs’ – reuse, reduce, recycle, renew and redesign – as a way to guide a three-pillar approach to our sustainability efforts, each of which contributes to our sustainability initiatives in a unique way,” said Sun Chemical CTO Russ Schwartz.

“The first pillar is operations,” added Schwartz. “We have several key initiatives in place where we aim to reduce water and energy usage, waste and CO2 emissions in our operational processes and at our manufacturing facilities. The second pillar is products. We’re constantly looking to enable recyclability, bio-renewability and/or compostability within our product offerings while minimizing packaging weight and complexities.”

For example, Sun Chemical developed SunSpectro SolvaWash GR, a washable gravure ink technology. Designed to allow inks to be removed in a controlled way from post-consumer printed packaging in typical existing mechanical recycling processes without staining the recovered plastic flake or the process wash water, these inks were developed initially for crystallizable PET shrink sleeves that can be recycled together with PET bottles. The washable inks enable increased recovery of high-quality, clean, recycled plastic resin. Energy curable and water-based products are also being developed.

“Lastly, we prioritize our sustainability efforts through our cross-industry partnerships and collaborations,” Schwartz reported. “These relationships are critical in contributing to sustainability initiatives because they help us understand what the needs and gaps are in becoming more sustainable, especially in certain packaging industries.”

COVID-19 had a major impact on raw material pricing and availability for ink manufacturers, and DIC and Sun Chemical were no exception.

“COVID-19 had a significant impact on raw material prices and supplies,” Sota reported. “In addition, due to force majeure such as the wildfires and the cold wave in North America, several major suppliers experienced disrupted distribution networks, increasing logistics costs and spurring delivery delays that tightened raw material supplies and increased prices. Supply shortages continue for some raw materials. DIC and Sun Chemical continue to secure raw materials for stable production utilizing our global purchasing network.”

Jeffrey Shaw, chief supply chain officer at Sun Chemical, added that COVID-19 has, and continues to have, a significant impact on raw materials both from a pricing and availability standpoint.

“Higher freight charges and carrier availability have impacted shipping costs for over a year, while raw material availability and pricing continue to require price increases be shared with our customers,” Shaw added. “The impact has been across all technologies and will continue for the foreseeable future.

“We continue to work closely with our supply chain – and look for alternative raw material sources – to ensure we can continue to provide our customers with materials in a timely manner.”

DIC Corporation and Sun Chemical leaders report that business is heading toward a new normal, “Business conditions continue to vary by region,” Masaaki Nakagawa, GM, Corporate Communications Department, DIC Corporation, said. “However, as the number of vaccinations increase, we see an overall movement toward normalization.”

“While the vaccine rollout will eventually lead to a new normal, Sun Chemical continues to take a conservative approach to returning to in-office work and business travel,” Chris Parrilli, president, Sun Chemical North American Inks, noted. “This ensures the ongoing safety of our employees while still allowing us to support our customers. The past year has given rise to creative new ways to collaborate and support our business, which will continue into the future.”

Overall, Schwartz said that Sun Chemical is well positioned to weather the continued storm of raw material shortages and changing market dynamics as we head toward the second half of the year.

“We will continue to manage our supply chain to provide on-time, in-full shipments while our technology group will continue to push the boundaries of innovation,” added Schwartz. “By continuing to focus on sustainable solutions, we will help our customers – and their customers – achieve their business goals in 2021 as well as their immediate and longer-term sustainability goals.”

Major Products: Broad product portfolio with capabilities in web heatset and sheetfed offset; publication and packaging gravure; news ink and publication coldset; flexographic packaging inks; corrugated packaging inks; energy curable inks and coatings; screen inks, toner, inkjet materials, adhesives for packaging, overprint varnishes, specialty coatings, effect inks, security inks and coatings, printing consumables and organic pigments for inks, plastics, paints, coatings and cosmetics.

Number of Employees: 20,513

Comments: The leading international ink manufacturer, DIC Corporation has more than 170 companies, including its North American/EMEA subsidiary Sun Chemical. DIC Corporation had a solid year in the graphic arts market, with sales from its Packaging & Graphic and Color & Display divisions totaling $4.9 billion (¥532.8 billion).

Packaging & Graphics segment sales declined 4.2% but were up 0.6% on a local currency basis. Segment operating income dropped 3.6%. DIC reported that sales of food packaging inks increased, notably in emerging economies in Asia and South America, and inkjet inks were a bright spot for the company. Meanwhile, sales of publication inks declined. Color & Display sales decreased 6.2%, while segment operating income fell 28%.

Overall, DIC saw its consolidated net sales decline 4.6%, to $7.07 billion (¥768.6 billion) in fiscal year 2019.

“In fiscal year 2019, consolidated net sales slipped 4.6%, to ¥768.6 billion,” the company stated in its annual report. “On a local currency basis, however, the decrease was
only 1.3%.

“Operating income was down 14.6%, to ¥41.3 billion, or 8.7% on a local currency basis,” the report continued. “In addition to falling shipments, particularly of high-value-added products, these results reflected flagging sales prices for some products. Thanks to the impact of raw materials price decreases and of cost reductions achieved through rationalization, the decline narrowed after bottoming out in the first quarter.”

DIC and Sun Chemical have been active in the merger and acquisition market. In the biggest news, DIC announced on Aug. 29, 2019, that it is in the process of acquiring BASF’s Colors & Effects (BCE) business, which includes all of its pigment operations. BASF had Colors & Effects sales of €992 million in 2018.

“Our acquisition of BCE brings together complementary resources and expertise of two recognized leaders in innovation, product stewardship, regulatory leadership, application support and manufacturing,” said Kaoru Ino, president and CEO of DIC, in making the announcement. “We have outlined a clear growth path for DIC with the target to increase our sales to 1 trillion yen (approximately €8 billion) by 2025. In this context, BASF’s pigments portfolio is an important strategic addition in meeting our goals more expeditiously. It will allow us to expand our offering as one of the leading pigment suppliers globally and provide our customers with even more versatile solutions.”

The company was also active on the ink side. On June 1, 2020, DIC Corporation announced that Sun Chemical entered into a definitive agreement to acquire 100% of the shares of Sensient Imaging Technologies, an inkjet ink leader in the field of textiles and industrial markets, two growing segments.

Liquid inks for packaging is another area of growth, and DIC made a move here as well, acquiring a packaging ink business from Lioaning Tianqi Technology Co., Ltd. on May 1, 2020. The company will be renamed to DIC Graphics (Shenyang) Ltd.

Major Products: Broad product portfolio with capabilities in web heatset and sheetfed offset; publication and packaging gravure; news ink and publication coldset; flexographic packaging inks; corrugated packaging inks; energy curable inks and coatings; screen inks, toner, inkjet materials, adhesives for packaging, overprint varnishes, specialty coatings, effect inks, security inks and coatings, printing consumables and organic pigments for inks, plastics, paints, coatings and cosmetics.

Number of Employees: 20,620

Comments: In terms of sales, DIC Corporation enjoyed solid growth in 2018, with consolidated sales increasing 2% to ¥805.5 billion ($7.5 billion). Operating income declined 14.3% to ¥48.4 billion ($45 million), with higher raw material prices of particular concern.

“In this environment, consolidated net sales increased 2.0%, to ¥805.5 billion, reflecting multiple factors, including the revision of sales prices and firm shipments,” the company noted in its annual report. “Operating income declined 14.3%, to ¥48.4 billion, hampered by rising raw materials prices, higher distribution costs and the depreciation of currencies in European emerging economies, among others. Net cash provided by operating activities amounted to ¥51.0 billion, down from ¥54.2 billion provided by such activities in fiscal year 2017.”

The leading global ink manufacturer, DIC Corporation has more than 170 companies, including Sun Chemical, its North American/EMEA subsidiary. DIC reported $4.85 billion (¥521,500 million) in graphic arts sales in 2018, which was flat compared to the previous year.

Sales in printing inks were $3.6 billion. Ink sales in the Americas and Europe rose 2.5% and 4.3% in Asia and Oceania, offsetting a 3.6% decline in Japan. The Fine Chemicals segment includes pigments, and DIC reported a decline of 2.3% to ¥132.3 billion ($1.2 billion), although effect pigment sales were up.

“Sales in Japan declined, a consequence of diminished demand for publishing inks, among others,” the company reported in its annual report. “Although sales of packaging inks rose, sales in North America edged down, owing to waning demand for publishing inks and news inks. In Europe, sales increased, boosted by brisk shipments of packaging inks. Sales in Central and South America were up in all product categories. Higher shipments of packaging inks and publishing inks bolstered sales in the PRC and Southeast Asia. Sales in Oceania fell, with causes including fading demand for publishing inks and news inks. Sales in India increased in all product categories.”

Major Products: Broad product portfolio with capabilities in web heatset and sheetfed offset; publication and packaging gravure; news ink and publication coldset; flexographic packaging inks; corrugated packaging inks; energy curable inks and coatings; screen inks, toner, inkjet materials, adhesives for packaging, overprint varnishes, specialty coatings, effect inks, security inks and coatings, printing consumables and organic pigments for inks, plastics, paints, coatings and cosmetics.

Comments: DIC Corporation had an excellent year in 2017, with consolidated net sales up 5.1% to ¥789.4 billion, and operating income increasing 4.2% to ¥56.5 billion. The company reported that the positive results were partially driven by higher sales of high-value-added products and cost reduction efforts, which helped offset the impact of rising raw materials prices.

With more than more than 170 companies, DIC Corporation is a market leader in many industries, including printing inks. Including Sun Chemical, its North American/EMEA subsidiary, DIC reported $4.6 billion (¥518,000 million) in graphic arts sales during 2017, up slightly from 2016.

Printing ink sales were ¥383 billion ($3.4 billion) in 2017, with operating income of ¥17.4 billion, or $154 million. In Japan, DIC reported that sales of packaging inks performed well. Overall sales in Japan decreased, driven by lessened demand for publishing inks and news inks.

Sales of inks in North America were flat compared to 2016, with higher shipments of packaging inks overcoming declines on the publication ink side. Meanwhile, sales in Europe were on the rise, as publication and packaging inks held steady. Sales in Central and South America increased due to packaging inks.

In the Asia-Pacific region, sales in the People’s Republic of China (PRC) declined, due to the publication ink side, but the rest of Southeast Asia, as well as India, fared well in both publication and packaging inks.

In the Fine Chemicals segment, which includes pigments, DIC reported that net sales were up 5.7% to ¥135.4 billion ($1.2 billion), with operating income of ¥17.4 billion ($154 million), a gain of 20.3% over 2016. While DIC noted a decline in pigment sales, sales of thin-film transistor (TFT) liquid crystals (LCs) increased substantially.

In important personnel news, Yoshiyuki Nakanishi resigned as president and CEO of DIC, assuming the position of director, chairman of the board. Kaoru Ino, who previously was DIC’s managing executive officer, was named as the new president and CEO. Ino, who joined the company in 1981, was previously responsible for the Corporate Strategy Division.

Major Products: Broad product portfolio with capabilities in web heatset and sheetfed offset; publication and packaging gravure; news ink and publication coldset; flexographic packaging inks; corrugated packaging inks; energy curable inks and coatings; screen inks, toner, inkjet materials, adhesives for packaging, overprint varnishes, specialty coatings, effect inks, security inks and coatings, printing consumables and organic pigments for inks, plastics, paints, coatings and cosmetics.

Number of Employees: Approximately 20,000 worldwide

Comments: A global company consisting of more than 170 companies, DIC Corporation had a challenging year, in 2016 with sales declining 8.4% to ¥751,438 million ($5.78 billion), although operating income rose by more than 6% to ¥54,182 million ($458 million). The company reported the sales decline was partially the result of the appreciation of the yen against other major currencies, while increased sales of high-value-added products and cost reductions resulted in the better operating income.

The North American, European and People’s Republic of China (PRC) and Southeast Asia economies continued to see moderate recovery.

The Printing Inks segment, including Sun Chemical’s ink operations, was down slightly at ¥374 million ($3.3 billion), with operating income holding stable at ¥18,300 million ($160 million), or nearly 5%.

In Japan, packaging ink sales were strong, but declining demand for publishing inks and news inks and price erosion impacted overall sales. In the Americas and Europe, sales of packaging inks were on the upswing in sales, but once again, publication and news inks continued to slump. DIC reported that sales in Central and South America were strong across the board.

In the People’s Republic of China, prices were decreasing, impacting overall sales, while Southeast Asia and Oceania reported strong sales growth across all ink types.

In Asia, there is a move away from solvent-based packaging inks, primarily gravure, for environmental reasons. To meet the increasing demand for the water-based flexo inks in Asia and Oceania, DIC Corporation made moves to expand production capacity and optimize regional production facilities, notably in Sydney, Australia, doubling its capacity.

In the Fine Chemicals business, which includes pigments, DIC reported that net sales were ¥128 billion ($1.12 billion), with operating income of ¥14.4 billion ($126 million) or 11.3%, an improvement from 2015.

DIC reported increased domestic sales of functional pigments, including pigments for color filters, as well as strong sales in cosmetics in the Americas and Europe. Sales of thin-film transistor liquid crystals also increased.

Sun Chemical, DIC’s subsidiary in the Americas and Europe, made news with a trio of acquisitions and alliances. In March 2017, Sun Chemical formed a joint venture with Alliance Holding Company LTD, the parent company of Ink Products Company, to form Sun Chemical Saudi Arabia Ltd.

In October 2016, Sun Chemical acquired Gwent Electronic Materials Ltd., a UK-based leader in conductive inks, pastes and powders for printed electronics.

In major news, Sun Chemical acquired Flint Group’s European publication gravure ink business in September 2016.

“We are delighted to confirm the acquisition of Flint Group’s Publication Gravure Ink Business, which reaffirms our commitment to this sector, and enables us to further strengthen and enhance the performance of our own publication gravure plants,” said Felipe Mellado, chief marketing officer and board member at Sun Chemical.

Major Products: Broad product portfolio with capabilities in web heatset and sheetfed offset; publication and packaging gravure; news ink and publication coldset; flexographic packaging inks; corrugated packaging inks; energy curable inks and coatings; screen inks, toner, inkjet materials, adhesives for packaging, overprint varnishes, specialty coatings, effect inks, security inks and coatings, printing consumables and organic pigments for inks, plastics, paints, coatings and cosmetics.

Number of Employees: Approximately 20,000 worldwide

Comments: DIC Corporation is a global company consisting of more than 170 companies, including Sun Chemical. DIC had a strong year in 2015, with sales of ¥819,999 million ($6.83 billion), and operating income up by nearly 20% to ¥51,068 million ($425.6 million).

“In the period under review, moderate economic recovery persisted in North America and Europe,” said Yoshiyuki Nakanishi, DIC Corporation’s president and CEO. “In Asia, the pace of growth in the People’s Republic of China (PRC) and Southeast Asia decelerated gradually, although a rally was seen in India. Japan’s economy remained on a gentle upswing, despite the fact that production levels were flat. In this environment, consolidated net sales edged down, to ¥820.0 billion. Operating income, at ¥51.1 billion, was up 24.3%, as results benefited from, among others, an improved operating environment and the positive impact of rationalization measures. Ordinary income increased 22.7%, to ¥49.0 billion. Net income rose 48.4%, to ¥37.4 billion.”

The Printing Inks segment, including Sun Chemical’s ink operations, was down slightly at ¥408,300 million ($3.38 billion), although operating income rose to ¥19,200 million ($160 million), or 4.7%.

In Japan, sales of offset, news and gravure inks declined, as did operating income. Packaging ink sales were steady in North America and Europe, while publication ink sales were on the decline on Europe. Still, operating income rose in those two regions. Sales also declined in Asia-Pacific and Oceania, although gravure inks remained a bright spot. Operating income increased significantly in this region as well.

In the Fine Chemicals business, which includes pigments, DIC reported that net sales were ¥145.1 billion ($1.21 billion), an increase of nearly 5%, with operating income of ¥13.7 billion or 9.5%, flat compared to 2014.

According to DIC, pigment sales in Japan rose due to use in color filters and printing inks. In the Americas and Europe, sales of effect pigments and pigments for cosmetics increased.

DIC and Sun Chemical made some significant moves worldwide during the past 12 months. DIC announced that PT.DIC Graphics, DIC’s Jakarta-based wholly owned subsidiary, will build a new blending facility for liquid inks for food and beverage packaging in Surabaya, Indonesia. It was expected to cost approximately ¥600 million, and will nearly double the company’s production capabilities.

In February 2016, Sun Chemical completed the acquisition of the flexo ink business of Colmar Inks Corporation of Ontario, Canada.

In June 2016, Sun Chemical opened a $30 million solvent-based flexible packaging ink manufacturing facility in Aliaa, Izmir, Turkey. The 50,000 square meter site will supply inks to Turkey and the Middle East. Water-based inks will be produced at the present facility in Çigli, Turkey.

Nakanishi anticipates further growth for DIC Corporation in 2016.

“Our quantitative targets for fiscal year 2016 – the first year of DIC108 – include consolidated net sales of ¥870.0 billion, operating income of ¥54.0 billion and net income of ¥25.0 billion,” Nakanishi said.

Major Products: Broad product portfolio with capabilities in web heatset and sheetfed offset; publication and packaging gravure; news ink and publication coldset; flexographic packaging inks; corrugated packaging inks; energy curable inks and coatings; screen inks, toner, inkjet materials, adhesives for packaging, overprint varnishes, specialty coatings, effect inks, security inks and coatings, printing consumables and organic pigments for inks, plastics, paints, coatings and cosmetics.

Number of Employees: Approximately 20,000 worldwide

Comments: DIC Corporation is part of the DIC Group, a global company consisting of more than 170 companies, including Sun Chemical. DIC had an excellent year overall, with sales of ¥830,078 million ($6.92 billion), up 5.9%, and operating income of ¥41,076 million ($342.3 million).

“In fiscal year 2014, ended Dec. 31, 2014, the trend toward economic recovery in North America and Europe clarified,” said Yoshiyuki Nakanishi, DIC Corporation’s president and CEO. “While instability lingered in Asia, reflecting, among others, slowing growth in the People’s Republic of China (PRC) and Southeast Asia, signs of a revival in demand were seen in India through the second half. In Japan, demand remained weak, underscored by such factors as a protracted negative rebound in consumer demand following the sharp spike that preceded the consumption tax increase in April 2014.

“In this environment, consolidated net sales advanced 5.9% from fiscal year 2013, to ¥830.1 billion, as results benefited from the positive impact of higher shipments and the depreciation of the yen,” Nakanishi added. “Operating income, at ¥41.1 billion, was down 6.9%, owing to a number of factors, including an increase in raw materials prices.”

The Printing Inks segment, including Sun Chemical’s ink operations, had a strong showing, with sales rising 11.3% to ¥415,700 million ($3.47 billion), although operating income declined to ¥17,300 million ($144 million).

First, the bad news. DIC Corporation’s domestic ink sales declined 5.1% to ¥ 81.5 billion ($680 million), and operating income sank by 29.6% to ¥3.8 billion ($32 million). Gravure ink sales were steady, but sales of offset inks and news inks decreased significantly. Higher raw material costs were a key driver in the decline in operating income.

The news was much better in the Americas and Europe. Net sales of printing inks was ¥282 billion ($2.35 billion), up 10.6%, while operating income was ¥9.9 billion ($82.5 million,) an increase of 20.8%. Packaging inks held steady in Europe and North America, although publication and news ink sales were soft. Central and South America reported growth across all product lines.

Results were mixed in Asia and Oceania. Net sales in the Asia and Oceania region rose 3.8% to ¥70.7 billion ($590 million), but operating income fell by 32.5% to ¥3.6 billion ($30 million). Gravure inks sales drove the overall growth, with offset and news inks falling.

Southeast Asia and India provided the best growth for DIC. High raw materials prices and rising costs were cited as the main reasons for the declining operating income.

In the Fine Chemicals business, which includes pigments, DIC reported that net sales were ¥138.3 billion ($1.15 billion), an increase of 8.3%, with operating income of ¥13.8 billion, or $115 million, up 9.8%. In particular, growth in sales was seen in plastics, cosmetics and effect pigments.

Sun Chemical made a few important moves around the globe in the past year, most notably with the acquisition of the remaining shares of its 2012 South Eastern European joint venture with the Druckfarben Hellas Group.

The publication divisions of both companies were merged into five subsidiaries with combined sales of $30 million: Sun Chemical Publication Bulgaria, Sun Chemical Croatia, Sun Chemical Publication Greece, Sun Chemical Publication Romania and Sun Chemical Publication Serbia.

In Latin America, Sun Chemical opened six color centers: San Salvador, El Salvador; Mexico City, Mexico; Cali, Colombia; Lima Peru; São Paulo, Brazil; and Santiago, Chile. The color centers will help customers develop a digitally color managed workflow.

Major Products: Broad product portfolio with capabilities in web heatset and sheetfed offset; publication and packaging gravure; news ink and publication coldset; flexographic packaging inks; corrugated packaging inks; energy curable inks and coatings; screen inks, toner, inkjet materials, adhesives for packaging, overprint varnishes, specialty coatings, effect inks, security inks and coatings, printing consumables and organic pigments for inks, plastics, paints, coatings and cosmetics.

Number of Employees: Approximately 20,000 worldwide

Comments: DIC Corporation had a solid year in 2013, as consolidated net sales rose 12.8%, to ¥705.6 billion. Operating income rose 15.5% to ¥40.2 billion, its highest level since 2007, driven by rationalization, sales price adjustments and the declining yen. Net income was ¥26.8 billion, an increase of 51.6%.

The Printing Inks segment, which includes Sun Chemical’s ink operations, did very well, with sales increasing to ¥373,600 million ($3.55 billion). Overall, domestic sales for the Printing Inks & Supplies Division were flat compared in 2012. Sales of gravure inks rose, as demand remained solid. Sales of offset inks and news inks declined, owing to a downward trend in demand.

Sales in North America and Europe declined in spite of strong sales of packaging inks, as sales of publishing inks and news inks fell. In Central and South America, sales remained level with the previous year, with sales of mainstay packaging inks sluggish. Overall, sales in the Americas and Europe were up after translation as a result of yen depreciation. The company reported that operating income increased substantially, due to rationalization efforts and an improvement in product mix, among others.

In Asia and Oceania, sales in the PRC declined, despite strong sales of gravure inks, as faltering economic growth and other factors caused sales of offset inks and news inks to fall. Sales in Southeast Asia were up, bolstered by solid results in all categories. Although sales of offset inks were robust, sales in Oceania were on a par with the previous fiscal year, as sales of news inks declined. Sales in India declined, with offset inks and gravure inks, in particular, struggling under slowing economic growth.

Yoshiyuki Nakanishi, president and CEO of DIC Corporation, said that the company expects to realign its operations in North America and Europe. He added that DIC has set its sights set on achieving operating income of ¥60.0 billion in fiscal year 2015.

“In fiscal year 2014, we will embark on a full-scale realignment of our North American and European printing inks production facilities,” said Nakanishi. “To date, measures have been limited to the closure of a few smaller plants, but we will now turn our attention to closing a number of mainstay facilities. By shrinking our overall production capacity, we aim to lift operating rates at publishing inks mother plants substantially. We expect the realignment of these facilities to begin contributing to profits in fiscal year 2015.”

Meanwhile, DIC and Sun Chemical are expanding operations in growth areas. Sun Chemical is building a new plant for liquid inks for packaging in Turkey’s Aliaga Organize Sanayi Bölgesi (ALOSBI), adding capacity in the growing markets in Europe, Middle East and Africa (EMEA) and Turkey, Construction of the new facility will begin in 2Q 2014, with completion scheduled for 3Q 2015.

In January 2014, Sun Chemical announced it purchased the remaining shares of Tintas SA and Sinclair SA, its Colombian joint venture companies, which Sun Chemical held with Inversiones Mundial (Grupo Mundial) since 1999. The Tintas/Sinclair Group sells printing inks and related graphic arts products primarily to the packaging market in the Andean region of Latin America. It has annual sales of more than $100 million.

Major Products: Broad product portfolio with capabilities in web heatset and sheetfed offset; publication and packaging gravure; news ink and publication coldset; flexographic packaging inks; corrugated packaging inks; energy curable inks and coatings; screen inks, toner, inkjet materials, adhesives for packaging, overprint varnishes, specialty coatings, effect inks, security inks and coatings, printing consumables and organic pigments for inks, plastics, paints, coatings and cosmetics.

Number of Employees: Approximately 20,000 worldwide.

Comments: DIC Corporation faced a challenging year in fiscal year 2011, ending March 31, 2012, as the company’s sales declined 4.2% to 703.8 billion yen ($7.47 billion). The Printing Inks & Supplies segment, which includes Sun Chemical’s ink operations, were also impacted, with sales falling 4% to 356 billion yen ($3.78 billion).

Domestic sales for the Printing Inks & Supplies Division declined 3.3% to ¥87.7 billion ($930 million) in 2011. Sales of gravure inks were even with fiscal year 2011, but sales of offset inks declined, due to an existing downward trend in demand and the loss of commercial rights for certain products in the wake of sales price revisions. However, operating income increased 15.3% to 15.1 million yen.

DIC Corporation and its subsidiary, Sun Chemical, faced challenges in the Americas and Europe, with net sales declining 4.0% to ¥218.6 billion ($2.32 billion), although in dollar terms, it remained flat. Sales of publishing inks and news inks, attributable to shrinking print runs for magazines and newspapers and other factors, declined, while packaging ink sales were strong.

Despite strong sales of gravure inks, sales in the People’s Republic of China (PRC) decreased due to slowing economic growth and other factors that pushed down sales of offset and news inks. Sales in Southeast Asia increased due to strong sales of gravure inks, while demand for offset inks declined. Sales in Oceania also rose, as the takeover of Pacific Inks Limited led to a major increase in flexo ink sales. Sales in India grew in all product categories.

In an important move, DIC Corporation decided in January 2013 to change its fiscal year-end, which is currently March 31, while its overseas subsidiaries end on Dec. 31. This will allow DIC to adopt a standard fiscal year-end across the entire Group. As a result, fiscal year 2013 for DIC will be a nine-month transitional period (April 1, 2013 –Dec. 31, 2013).

In July 2013, DIC Corporation and Hitachi Chemical Co., Ltd. agreed that their joint venture, DH Material Inc., will become a wholly owned subsidiary of DIC. DH Material was founded in February 2005 to handle the two companies’ unsaturated polyester resins and vinyl ester resins activities in Japan. DIC anticipates that overseas demand for these products will increase, particularly in China and Southeast Asia.

In December, 2012, DIC Corporation announced that PT. DIC Graphics of Jakarta, Indonesia, a wholly owned printing inks manufacturing and sales subsidiary, acquired the phthalocyanine blue crude and pigments businesses of Indonesian firm PT. Monokem Surya of Indonesia. This provides DIC with a base for organic pigment production in South East Asia.

Major Products: Broad product portfolio with capabilities in web heatset and sheetfed offset; publication and packaging gravure; news ink and publication coldset; flexographic packaging inks; corrugated packaging inks; energy curable inks and coatings; screen inks, toner, inkjet materials, adhesives for packaging, overprint varnishes, specialty coatings, effect inks, security inks and coatings, printing consumables and organic pigments for inks, plastics, paints, coatings and cosmetics.

Number of Employees: Approximately 20,455 worldwide

Comments: DIC Corporation faced a challenging year in fiscal year 2011, ending March 31, 2012, as the company’s sales declined 5.7% to ¥734.3 billion ($8.92 billion). The Printing Inks & Supplies segment, which includes Sun Chemical’s ink operations, were also hard hit, with sales declining 8% to ¥372 billion ($4.52 billion). Higher raw material prices, led by rosins and titanium dioxide, among others, had a negative impact on operating profits.

The Printing Inks & Supplies Division faced numerous challenges worldwide in 2011. Domestic sales for the division fell 5.7% to ¥91.9 billion ($1.12 billion) in 2011. Notably, gravure ink sales were flat overall for the year, with increased demand for flexible packaging in the wake of the Great East Japan Earthquake, but sales of gravure inks were impacted by difficulties in procuring certain raw materials – also due to the earthquake – for production. Sales of offset and news inks continued to decline. However, operating income increased 14.5%, as the company was able to increase pricing to reflect higher raw materials costs.

DIC Corporation and its subsidiary, Sun Chemical, faced difficult times in the Americas and Europe, with net sales falling 11.3% to ¥227.7 billion ($2.77 billion). Operating profit declined 43.2% to ¥4.3 billion ($52.3 million). While sales of packaging inks rose slightly, shrinking print runs for magazines and newspapers and other factors pushed sales of publishing inks and news inks down significantly, according to the company. Results were similar in Central and South America, where sales were even with the previous fiscal year, as sales of packaging inks were brisk and offset inks decreased.

The Asia and Oceania region was strongest for DIC, with net sales slightly down by 0.7% to ¥60.6 billion. Still, operating income declined 15.5%, as DIC found it difficult to pass along price increases in China. In spite of growing sales of news inks, overall sales in the People’s Republic of China (PRC) declined. Ink sales in Southeast Asia increased slightly, driven by gravure inks, while sales in Oceania remained flat. In India, sales rose, led by strong offset ink sales.

Major Products: Broad product portfolio with capabilities in web heatset and sheetfed offset; publication and packaging gravure; news ink and publication coldset; flexographic packaging inks; corrugated packaging inks; energy curable inks and coatings; screen inks, toner, inkjet materials, adhesives for packaging, overprint varnishes, specialty coatings, effect inks, security inks and coatings, printing consumables and organic pigments for inks, plastics, paints, coatings and cosmetics.

Number of Employees: Approximately 22,000 worldwide

Comments: DIC Group revised its business segments effective April 1, 2010, with Printing Inks & Supplies becoming the largest segment, followed by Neo-Graphic Arts Materials, which includes organic pigments. This reorganization is an important part of DIC’s effort to shift from a product-specific to a market-focused management approach

DIC Group enjoyed 2.8% growth overall to ¥779 billion in fiscal year 2010, although Printing Inks & Supplies suffered a slight decrease, with sales declining 2.6% from ¥415.4 billion to ¥404.4 billion. Overall profitability of DIC improved 33.6% in 2010, to ¥37.2 billion, while the profitability of the Printing Inks & Supplies segment rose 4.2% to ¥16.1 billion in 2010.

In terms of regional markets, the domestic market saw 5% growth in the Printing Inks & Supplies segment to ¥97.5 billion, driven by the addition of The Inctec Inc. Although demand for gravure inks in Japan remained level for use on beverage containers and in food packaging, offset and news inks struggled as a result of falling demand for publishing and advertising leaflets and declining print runs and page counts for newspapers. Profitability suffered, dropping 13.5% primarily due to higher raw materials costs.

The Americas and Europe are the largest market for Printing Inks & Supplies. Sales dropped 6.9% to ¥256.6 billion, and operating income declined 3.4% to ¥7.6 billion. Those figures are somewhat misleading, as sales in the Americas and Europe were essentially flat and operating income rose in terms of the local currency, but were down due to the appreciation of the yen.

While sales for inks for advertising leaflets, catalogs and packaging inks in North America and Europe remained firm, sales of publishing and news inks declined as a result of shrinking print runs for newspapers and magazines, among others. Central and South America enjoyed an increase in sales as demand for all products, particularly packaging inks.

Asia and Oceania showed the greatest growth for the Printing Inks & Supplies segment, with sales rising 13.8% to ¥61.0 billion, and operating income rising 28.9% to ¥5.6 billion. Gravure and offset ink sales were strong in the People’s Republic of China, while gravure ink sales grew in Southeast Asia. India also was an excellent growth market, with strong sales in news, offset and gravure inks.