Toto has suspended new orders for its prefabricated bathrooms due to a material shortage as the Iran war continues to squeeze the global oil supply chain.
Toto notified its business partners of the halt on Monday, a representative said. The suspension applies to prefabricated and modular bathrooms, and the company hasn¡¯t decided when orders will resume, the representative said.
The company joins a growing list of Japanese manufacturers who have cut production or hiked prices in recent weeks due to tightening supplies of naphtha, an oil feedstock used in plastic production. The nation relies on Middle Eastern imports for around 40% of its naphtha supply, according to the Japan Petrochemical Industry Association.
Toto¡¯s shares dropped as much as 8.8%, the most since October 2024, on Monday afternoon after the Nikkei reported the news.
"The procurement of raw materials both domestically and internationally has become extremely unstable¡± as a result of the Middle East conflict, Toto said in a statement released Friday.
Toto is facing a shortage of organic solvents used in the coatings of walls and ceilings in its modular bathrooms, its representative said. The bathrooms, which are common in Japanese apartments, typically include a bathtub, waterproof flooring, walls, a ceiling and a shower.
Housing equipment maker Takara Standard also said Middle East tensions are destabilizing its supplies of naphtha-related materials in a statement released Monday. Its shares slumped as much as 6%.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.