The move is aimed toward increasing the transformation of its business portfolio as a part of the basic strategy of its long-time period management plan, VISION 2030
Mitsui Chemicals has all started to consider splitting off its Basic & Green Materials business (B&GM), that’s in the main engaged in petrochemicals, in order to transition to a stronger business structure and promote the shift to green society, in order to pursuing collaboration with different enterprises as well as integration and transformation.
The enterprise stated that the move is aimed at increasing the transformation of its business portfolio as a part of the fundamental approach of its long-term management plan, VISION 2030. The VISION 2030 is promoting techniques, along with alliances with other enterprises, in the specialty chemicals domains (Life & Healthcare Solutions, Mobility Solutions, ICT Solutions) and B&GM, which have exclusive industry strategies, and speeds needed in decision-making.
Specifically, within the specialty chemicals domains, the enterprise is targeting in differentiated fields where it can able to make use of its strengths, and through proactive resource investment and new business development, inclusive of M&A and alliances, it’s working to expand a high-growth, high-profitability global specialty chemical business. In addition, for B&GM, Mitsui Chemicals is operating to expand a strong green chemicals business that assists Japanese industry via restructuring, development of high-performance materials, and the shift to green chemicals.
B&GM is a business sector that plays an essential role in Japan’s commercial competitiveness, economic protection, carbon neutrality, etc. Through stabilizing energy supplies inclusive of oil refining upstream in the deliver chain, and supplying important materials to other industries along with the automobile and semiconductor industries downstream.
Meanwhile, the business environment surroundings B&GM is facing a severe profit situation due to a gradual decline in demand in Japan caused by a declining population, while the construction of new huge plants overseas continues. This scenario is anticipated to continue for the following few years. “Recently, we are working on downsizing our naphtha crackers and restructuring and improving the performance of our derivatives, along with phenols and polyolefins, however we need to maintain with similarly structural improvements,” the enterprise stated in a press announcement.
For B&GM to perform independently as a robust inexperienced chemical compounds commercial enterprise that is across the world aggressive and supports Japanese industry, the organization has decided that it’s miles essential to enhance collaboration with other groups that have comparable agencies and strategies, and in addition to combine management sources to be able to realize collectively a sturdy business entity in phrases of human assets, resources, competitiveness, business foundations, and different resources.
The enterprise will consider to keep in mind the info based on B&GM’s current businesses listed as phenols, industrial chemicals, sustainable feedstocks, licensing, top polymer Co., Ltd. (Polyolefins), and polyurethanes.
“We aim to turn B&GM into a strong, self-maintaining commercial enterprise entity through collaboration with different enterprises and integration and transformation, consequently creating a Japan’s leading basic and green materials enterprise ,” the enterprise delivered.
“While we will try to realize the precise vision as early as possible, we can split off B&GM and establish the enterprise entity—so as to serve as a core in future integration and transformation—by around 2027. The new entity will enable us to make management decisions that are fast-paced and tailored to the petrochemicals quarter, and pursue investments for green chemicals and different ventures financed by its very own cash flow. We will leverage this to facilitate integration and transformation going ahead,” the enterprise stated.
