Strengthening globalization

「We will shift toward areas such as Wellness and ICT, which have low dependence on petrochemical feedstocks such as naphtha and in which we can provide value unique to our company, in order to transform our earnings structure into one less susceptible to changes in the external environment.」

「Regarding the expansion of high-value-added product lines and global expansion under “Expansion from Core Businesses,” the company continues steady efforts to transform its business structure, although progress is slightly behind expectations,」

「③ Global expansion: The company will pursue expanded sales by increasing production capacity and strengthening sales functions at overseas affiliates.」

「In the plastics-related fields, sales of chemicals and additives for paint and coatings increased overseas and remained strong, although the core permanent antistatic agent business was weak.」

「In the plastics-related fields, sales of chemicals and additives for paint and coatings increased overseas and remained strong, although the core permanent antistatic agent business was weak.」

「In the lifestyle-related fields, sales were flat. Demand for polyethylene glycol declined due to the lockdown in Shanghai, China, but sales of surfactants for hair-care products increased overseas and paper-related chemicals remained firm.」

「To meet customer demand for the Group's products, mainly in East and Southeast Asia, the Group is making active capital investments at Sanyo Kasei (Thailand) Limited and has begun manufacturing lubricant additives at Sanyo Chemical Manufacturing Korea Co., Ltd. By maximizing value across the Group, it will continue to meet customer expectations on a global scale.」

「Performance Chemicals is experiencing increased overseas demand due in part to rising living standards in emerging markets. The Group positions globalization as an important initiative and has recently pursued the establishment of new manufacturing sites and expansion of facilities in Malaysia, Thailand and South Korea, among other locations.」

「In the lifestyle-related fields, sales increased because demand for polyethylene glycol was particularly strong overseas and surfactants for liquid laundry detergents remained strong.」

「Demand for urethane beads for automotive interior skin materials declined due to changes in vehicle models using the product, but sales increased because domestic sales of raw materials for polyurethane foam used in automotive seats and other applications and sales of lubricant additives both in Japan and overseas remained strong.」

「In the oil and transportation equipment-related fields, sales increased because domestic sales of raw materials for polyurethane foam used in automotive seats and other applications and sales of lubricant additives both in Japan and overseas remained strong, despite a decline in demand for urethane beads for automotive interior skin materials due to changes in vehicle models using the product.」

「③ Promoting business expansion through globalization」

「In the oil and transportation equipment-related fields, sales increased substantially because sales of high-performance urethane beads for automotive interior skin materials expanded significantly and lubricant additives saw expanded sales both in Japan and overseas.」

「Filing company: The company; Contracting party: PTT Global Chemical Public Company Ltd., TOYOTA TSUSHO CORPORATION; Countries: Thailand, Japan; Details: Agreement concerning a joint venture in the polyol business in Thailand; Date of execution: 25 August 2017」

「In the oil and transportation equipment-related fields, sales and profits increased substantially. Sales of high-performance urethane beads for automotive interior skin materials expanded, domestic sales of raw materials for polyurethane foam used in automotive seats and other applications remained firm, and lubricant additives saw expanded sales both in Japan and overseas.」

「Against this backdrop, the Group pursued specific initiatives during the previous consolidated fiscal year, including establishing a new company overseas, making its plans for future global expansion and the establishment of a production management system more concrete. Accordingly, in the current fiscal year, the second year of the Ninth Mid-Term Management Plan, overseas investment, which is central to the plan, is entering the full-scale execution phase. As an opportunity to do so, the Group examined the operating status of its facilities, including existing facilities and those planned for future capital investment.」

「For its SAP and lubricant additives businesses, the company plans to invest overseas in order to focus on global expansion, and intends to expand overseas sales and establish a global production management system. It plans to prioritize allocating future capital expenditures to overseas sites, while shifting investment in Japan toward maintenance and renewal in line with market demand.」

「For its SAP and lubricant additives businesses, the company plans to invest overseas in order to focus on global expansion, and intends to expand overseas sales and establish a global production management system.」