Concentrating management resources on the Functional Materials business

「We decided to withdraw from bisphenol A, for which a challenging market environment is expected to continue over the medium to long term due to new capacity additions in China, further advancing the transformation toward a stronger business structure. We also strengthened earnings by making Idemitsu Clay Valley Co., Ltd., which operates a functional liquid rubber business, a wholly owned subsidiary in May 2023 and absorbing it in a merger in October. Meanwhile, in the engineering plastics compounding business, we focused on expanding sales in high-value-added fields, and the second SPS unit in Malaysia began commercial operations in November 2023.」

「In the engineering plastics compounding business, we focused on expanding sales in high-value-added fields, completed construction of the second SPS unit in Malaysia and began trial operations, with commercial operations scheduled to begin in fiscal 2023. In commodity products strongly affected by market conditions, the supply-demand balance deteriorated due to a substantial capacity increase in China, and a challenging business environment is expected to continue over the medium term. We withdrew from the acrylic acid business, which had inferior competitiveness, and in the hydrogenated petroleum resin business, we stopped the facilities in Japan and consolidated production in the competitive joint venture in Taiwan. We also decided to withdraw from the LMPP business, whose commoditization progressed faster than expected and which was no longer expected to be viable, and planned to stop its facilities within fiscal 2023. Through these decisive choices and concentration of businesses, we advanced the transformation toward a stronger business structure.」

「In engineering plastics, we decided to expand production capacity for our proprietary SPS (syndiotactic polystyrene) resin, began construction of a second unit in Malaysia, and scheduled completion for the end of fiscal 2022.」

「In the adhesive and tackifier base materials business, the hydrogenated petroleum resin production unit (product name: IMARV®) constructed jointly with Taiwan FPCC (Formosa Petrochemical Corporation) was completed, and commercial production began in the current fiscal year.」

「In the engineering plastics business, we decided to construct a second SPS (syndiotactic polystyrene) production unit in Malaysia, raising production capacity for our proprietary SPS resin to twice its current level. In the adhesive and tackifier base materials business, the production unit for hydrogenated petroleum resin (product name: IMARV®) constructed jointly with Taiwan FPCC (Formosa Petrochemical Corporation) was completed, with commercial production scheduled to begin in fiscal 2020.」

「Functional Materials operating profit ratio to reach 30% by 2030」

「To pursue stable production and business growth while meeting market needs, we will begin overseas production of hydrogenated petroleum resin in fiscal 2019 and continue considering overseas production of syndiotactic polystyrene resin.」

「We will expand the business in growth markets based on our proprietary technologies in engineering plastics, adhesive and tackifier base materials, and other areas. We have designated automotive electrical components, optical components, information and communications equipment, and hygiene products as priority areas for expansion and will pursue new business opportunities.」

「We will expand the business in growth markets based on our proprietary technologies in engineering plastics, adhesive and tackifier base materials, and other areas. We have designated automotive electrical components, optical components, information and communications equipment, and hygiene products as priority areas for expansion and will pursue new business opportunities.」

「For hydrogenated petroleum resin (product name: IMARV®), we are constructing a new plant jointly with Taiwan FPCC (Formosa Petrochemical Corporation).」

「Funds invested and financed by the company and 台塑石化股份有限公司 in the joint venture 台塑出光特用化学品股份有限公司」

「For hydrogenated petroleum resin, in September 2016 we decided to construct a production unit in Taiwan with annual capacity of 25,000 tonnes in cooperation with 台塑石化股份有限公司 (FPCC), and established the joint venture 台塑出光特用化学品股份有限公司 with the company.」

「In the Functional Materials business, we will focus on and develop engineering plastics, including syndiotactic polystyrene and polycarbonate resins, as well as tackifier and adhesive base materials, including hydrogenated petroleum resins and functional soft polypropylene, as core businesses by concentrating management resources in these areas.」