Business Description
Chlor-alkali
Our production of chlor-alkali involves the joint manufacturing of caustic soda and chlorine at Asia’s largest electrolysis facility.
Polyurethanes
We manufacture polyurethane raw materials used in automobiles, home electronics and homes in general, and industrial materials.
Cement
We produce cement using recycled raw materials, including waste plastic, automobile shredder residue (ASR), and construction waste soil.
Fiscal 2020 Results
The Chlor-alkali Group’s net sales decreased ¥40.0 billion, or 11.9%, to ¥297.4 billion, compared with fiscal 2019. Operating income, too, was down, ¥17.8 billion, or 38.7%, to ¥28.2 billion.
Prices for urethane raw materials, caustic soda, and polyvinyl chloride (PVC) products fell because of a decline in naphtha prices and difficult overseas market conditions. Shipments of raw materials, such as urethane, fell as a result of stagnant demand in Japan and abroad.
PVC products faced significantly harsh trade conditions despite declines in the prices of naphtha and other raw materials and fuels. The impact of decreased urethane and caustic soda prices simply could not be overcome and dragged down the Chlor-alkali Group’s operating income.
An increase in fixed costs resulting from the implementation of large-scale repairs at the Nanyo Complex power plant also contributed to the decrease in operating income.