Petrochemical Group

Business Description

Olefins

The olefins business centers on the naphtha cracker at the Yokkaichi Complex. Tosoh produces basic petrochemical raw materials, such as ethylene and propylene.

Polymers

Tosoh supplies polymers to meet a wide range of needs. It also integrates its polyethylene and functional polymer operations to produce an array of distinctive products.


Fiscal 2020 Results

Petrochemical Group net sales decreased ¥24.8 billion, or 13.5%, to ¥159.1 billion, compared with fiscal 2019. Operating income likewise decreased, ¥3.1 billion, or 23.1%, to ¥10.3 billion.  

Shipments of olefin products, such as ethylene, decreased owing to a drop in production. Olefin production declined because of an increase in the number of regular maintenance days and a decrease in demand amid a global economic slowdown.

Exports of polyethylene resin increased for solar cell encapsulation membrane applications. However, exports of chloroprene rubber decreased, mainly to Asia.

In addition, olefin and polyethylene product prices declined as a result of lower prices for naphtha and other raw fuels and price declines in overseas markets.

The dip in operating income was attributable chiefly to decreased shipments of functional polymer products, such as chloroprene rubber, which have high profit margins. Also contributing to diminished operating income was a deterioration in the difference between product receipts and payments because of lower prices for such raw materials as naphtha.

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