Annual Report 2018

“We will work to improve the strategic sharing of human resources across key facilities in Japan, and to secure talented personnel for Tosoh’s growth.”

Tosoh relies on its ancillary business group companies for timely support.

Tosoh's ancillary businesses work to ensure Tosoh’s various operations stay connected with one another and with their customers and are equipped to meet their objectives.

 

Tosoh's ancillary businesses encompass trading companies and an array of professional services companies that have evolved into profit-generating businesses in their own right.

  • Snapshot

    Tosoh relies on its ancillary business group companies for timely support. They ensure Tosoh’s various operations stay connected with one another and with their customers and are equipped to meet their objectives.

    Ancillary businesses encompass trading companies and an array of professional services companies. The latter provide logistics, administration, personnel, and IT support. One of these companies offers research and analysis in support of Tosoh’s development of innovative technologies, products, and services.

    These companies have evolved into profit-generating businesses in their own right. They compete for Tosoh Group business with outside entities. And this ensures healthy cost-competition and inspires enhanced administrative performance and technological development.

  • Group Performance

    From Cost Centers to Profit Centers

    Net sales by Tosoh’s ancillary businesses in fiscal 2018 increased 5.0%, to ¥41.1 billion (US$387.1 million), and accounted for 5.0% of the company’s consolidated net sales. This was down from 5.3% in fiscal 2017. Operating income fell 0.7%, to ¥2.7 billion (US$25.1 million), and the operating margin decreased to 6.5%, from 6.9% in fiscal 2017.

  • Supporting Tosoh Group

    Logistics

    As a chemical manufacturer, Tosoh depends on safe, efficient logistics operations. Tosoh Logistics Corporation enhances safety by raising awareness among employees. And it is prudently expanding overseas to provide its services to the Tosoh Group worldwide. It is performing a strategic, phased upgrading of the Tosoh Group’s logistics-related infrastructure, from the group’s marine fleet to warehouses and other facilities and structures.

    General Services

    Tosoh’s operations are diverse and require considerable administration. Tosoh General Services Co. Ltd. provides the required capabilities. This subsidiary is charged with conducting general services in human resources management, in disaster prevention, in the health and safety of Tosoh Group employees, and in operating the Tosoh Group salary administration system.

    Analysis and Research

    Tosoh Analysis and Research Center Co., Ltd., provides invaluable support to Tosoh’s operations. It utilizes advanced technology in the analysis of inorganic and organic materials, polymer chemistry, and a myriad of other fields with the aim of contributing to the expansion of Tosoh’s product lineup and cultivation of new applications.

    The company conducts most of its analysis and research operations at the Nanyo and Yokkaichi Complexes. But it also receives support from a number of regional offices and conducts operations at its Tokyo office, which opened in June 2017.

    Tosoh provides considerable support for its group companies worldwide, ensuring that they have all necessary equipment and systems and that maintenance and upgrades are conducted regularly. The company’s analysis and research business, Tosoh Analysis and Research Center, serves a crucial function within the Tosoh Group and in recent years has become a profit-generating business.

    Information Systems

    Tosoh Information Systems Co., Ltd., provides a wide variety of information and communication-related services. They range from system proposal, design, construction, and operation to the provision of general office and specialized equipment, education, and technological expertise.

    In the coming years, the success of a company may well depend on its adoption of AI and its management of the big data supporting AI. Tosoh Information Systems is transitioning the parent company’s manufacturing facilities into the new era through IoT technologies, such as analysis instrument remote monitoring capabilities. This other business is applying its planning, proposal, and implementation capabilities in powerful information and communication solutions to resolve the Tosoh Group’s needs in and issues with information management.

    Additional Functions

    Tosoh Nikkemi Corporation undertakes sales activities for Tosoh’s petrochemical products and industrial chemicals and is also a source for raw material procurement. Toho Acetylene Co., Ltd., is involved in the manufacture and sales of products such as oxygen, nitrogen, and carbon dioxide. And Kasumi Kyodo Jigyo Co., Ltd., owns, maintains, and manages industrial complex common facilities.

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