About the Tosoh Group

Editorial policy

In 2019, the name of the annual report was changed to Tosoh Report for the benefit of our investors and other stakeholders. Our goal is to provide an easy-to-understand overview of the Tosoh Group's efforts to enhance corporate value over the medium and long term.

This report, which is now in its third year, presents financial information such as the Tosoh Group's management strategies for sustainable growth, business overview, and business performance, as well as nonfinancial information such as specific initiatives related to key CSR issues, in an integrated and concise manner. In addition, we feature our Group company Tosoh SGM Corporation, along with a human resource strategy that supports the future of the company. We hope that you will find this information useful in understanding the Tosoh Group. Detailed data and CSR-related initiatives are stated on this website.

Guidelines 

  • GRI Sustainability Reporting Guidelines/ISO 26000
  • Ministry of the Environment, Environmental Reporting Guidelines 2018
  • Ministry of the Environment, Environmental Accounting Guidelines 2005
  • Ministry of Economy, Trade and Industry, Guidance for Collaborative Value Creation

Scope of report

Unless otherwise stated, this report covers Tosoh Corporation on a nonconsolidated basis. Financial information, however, is presented on a consolidated basis.

Reporting period

April 1, 2020 through March 31, 2021 (some information from April 2021 onward is included)

Additional information

Our website is open for public view in order to enable stakeholders to better understand the business activities of the Tosoh Group. Tosoh's corporate information is available through brochures and videos. We will continue to communicate with our stakeholders with the aim of further enhancing our corporate value.

Notes on forward-looking statements

The Tosoh Report contains forward-looking statements about the Tosoh Group's past and present facts as well as plans, strategies, and financial outlook based on information currently available to the company. The forward-looking statements are subject to various risks and uncertainties that may cause actual results and performance to differ materially from those described.

  • History of Tosoh

    The history of the Tosoh Group began with the establishment of Toyo Soda Kogyo K.K. which was founded with the vision of creating the ideal large, modern plant in the soda industry. Since then, the company has deepened and broadened its technology based on chemistry and worked to remain true to its original aims and aspirations while expanding its line of business.

    We at Tosoh will continue to work toward the realization of our corporate philosophy, “Contribute to society through the chemistry of innovation,” with the aim of promoting people’s well-being, while further deepening our dual management strategy that strengthens both Commodity and Specialty businesses in a well-balanced manner.

    1935 – Founded to create the ideal large, modern plant

    In 1935, the company was established in Tsuno-gun (currently Shunan City), Yamaguchi Prefecture, as Toyo Soda Kogyo K.K., to realize the ideal large, modern plant in the soda industry. Since then, the company has evolved in terms of soda industry products including soda and chloride, as well as inorganic chemicals such as bromine.

    1950 – Realized long-anticipated entry into the cement business

    The combination of the soda—the starting point of the company—and cement businesses was realized through a business alliance with Onoda Cement Co., Ltd. (now Taiheiyo Cement Corporation). This became the company’s second major business.

    1960 – Entry into the petrochemical business and internationalization

    During Japan’s period of rapid economic growth, the company broadened its existing inorganic chemical business centered on soda and cement. It also entered the petrochemical industry with products such as vinyl chloride monomer (VCM), polyethylene, and synthetic rubber. The company expanded by establishing its second base of operations in Yokkaichi City, Mie Prefecture, while the New York representative office was opened as the company's first overseas base, marking the launch of the company's international business.

    1975 – Faced a succession of crises; executed a merger to expand its petrochemical business

    The company encountered several problems such as the 1973 oil crisis, but in 1975, it merged with Tekkosha, which was in the process of diversifying its business mainly in the Tohoku region. In the 1980s, the company began to expand rapidly into new businesses.

    In 1990, Tosoh merged with Shindai Kyowa Petrochemical Co., Ltd. to become a comprehensive chemical company with an ethylene center at the Kasumi Industrial Complex in Yokkaichi.

    1995 – Establishment of Vinyl Chain business

    As the Japanese economy entered a recessionary phase, Tosoh carried out structural reforms along with a review of unprofitable businesses and shifted course from its sole focus on chemicals.

    In addition to formulating a vinyl chain concept for supplying Asia with vinyl chloride and caustic soda manufactured in Japan, the company strengthened its Specialty businesses and accelerated its global expansion.

    2005 – Establishment of Vinyl Isocyanate Chain business

    By strengthening its relationship with Nippon Polyurethane Industry Co., Ltd., Tosoh expanded the vinyl chain to the vinyl isocyanate chain. This helped enhance Tosoh’s development based on a dual management strategy with the Specialty business as the second axis.

    2014 – Deepening of dual management strategy

    In 2014, Tosoh Corporation merged with Nippon Polyurethane Industry Co., Ltd. Tosoh also accelerated the differentiation of its Specialty business. The company furthered its business based on a dual management strategy by consolidating its position in both the Commodity and Specialty fields in a balanced manner.

  • Dual Management Strategy

    The Tosoh Group creates new value and contributes to a sustainable society by focusing on both Commodity and Specialty businesses.

    (Billions of yen)
      Net sales
    Fiscal 2021 ¥ 732.9
    Petrochemical ¥ 131.4
    Chlor-alkali ¥ 274.9
    Specialty ¥ 180.6
    Engineering ¥ 106.2
    Ancillary ¥ 39.8

    Commodity Business

    Products Description
    Petrochemical Group
       Olefins The naphtha cracker located at the Yokkaichi Complex within the greater Kasumi Industrial Complex is the key component in Tosoh’s Petrochemical business. The company produces ethylene, propylene, and other basic petrochemical raw materials.
       Polymers Aiming to be a unique and distinctive business, Tosoh offers products that meet a wide range of needs while integrating the fields of polyethylene and functional polymers.
    Chlor-alkali Group
       Chlor-alkali Tosoh manufactures caustic soda and chlorine, both of which are used in a wide variety of industries, at one of the largest electrolysis facilities in Asia. Caustic soda is used in the manufacture of paper, chemical fiber, and alumina. Chlorine is used as a raw material for PVC resin and detergents.
       Urethane Polyurethane is utilized in a wide variety of applications, including automobiles, home appliances, residences, and industrial materials. From the perspective of electric vehicles, Tosoh’s polyurethane contributes to energy conservation and weight reduction.
       Cement Tosoh accepts plastic waste, automobile shredder residue, and soil generated from construction sites, both inside and outside the company, and effectively uses them as raw materials in the production of cement, commonly used in infrastructure construction. Tosoh actively supports the development of a recycling-oriented society.

    Specialty Business

    Products Description
    Specialty Group
       Organic Chemicals The company's Specialty business is centered on ethyleneamines, eco business products, and bromine and flame retardants. Our highly original products support people’s daily lives while also contribute to reducing society’s impact on the environment.
       Bioscience Tosoh is developing business in the fields of separations and purification and diagnosis based on proprietary technologies. The Group is involved in the development, manufacture, and sale of everything from instruments and reagents to maintenance and customer support.
       Advanced Materials Tosoh offers a broad range of products such as synthetic zeolite, zirconia, and silica glass on a global scale. Our distinctive products feature unique functionality that contribute to the enrichment of society and the protection of the environment.
  • The Value That We Provide Society

    The Tosoh Group offers innovative products that contribute to the achievement of SDGs (Sustainable Development Goals) and the resolution of social issues.

    The SDGs, adopted by the United Nations in 2015, are international development goals intended to be achieved by 2030 and are universal goals that apply to all countries. The Tosoh Group is making every effort to achieve the SDGs through its business activities.

    Products

    Description

    SDG Goal Contribution
    Commodity products
      Chlor-alkali/Petrochemical

    Polyvinyl chloride plastic

    Unlike other plastics, resource-saving PVC from Taiyo Vinyl Corporation uses salt as its main raw material. Moreover, the manufacturing process generates low carbon dioxide (CO2) emissions, making it extra eco-friendly.

    		 2, 6, 9, 11, 13, 15

    Rigid polyurethane foam

    Tosoh’s rigid polyurethane foam is used as insulation for construction and refrigeration. It reduces energy consumption by improving the efficiency of residential heating and cooling systems and refrigerators.

    		 7, 13

        Cement

    Tosoh accepts waste generated both internally and externally and effectively recycles it for use in the production of cement and fuel.

    		 12

    CR (chloroprene rubber)

    Utilizing technology developed over many years, our CR is a high-quality material for manufacturing medical gloves and other products; it is durable and suitable for long-term use.

    		 3

    Solar cell encapsulant EVA
    (ethylene vinyl acetate)

    Tosoh’s photovoltaic cell encapsulant EVA is a film that serves a crucial role in protecting and sealing solar cells. The material helps promote forms of renewable energy with low carbon footprint.

    		 7, 13

    Polyphenylene sulfide resin

    Tosoh’s high-performance polyphenylene sulfide resin is lightweight and features excellent heat and chemical resistance and dimensional stability. By reducing automobile weight, it improves fuel efficiency which is vital to the adoption and proliferation of electric vehicles. Lighter vehicles contribute greatly to reductions in energy consumption and CO2 emissions.

    		 7, 13
    Specialty products

    High-performance fluorochemicals

    Tosoh Finechem Corporation’s high-performance, nonflammable gas contains no ozone-depleting substances and is attracting attention as an alternative to chlorofluorocarbons (CFCs) and halons. It is expected to serve a broad range of applications such as an etching and fire-extinguishing agent, in the manufacture of semiconductors, and as a refrigerant for refrigerators and air conditioners.

    		 13
    Heavy metal treatment agents

    Tosoh’s chelating agents render harmful heavy metals contained in waste incineration ash and wastewater insoluble. They serve to meet an increasing need for human- and environment-friendly agents in the treatment of industrial waste, wastewater, and contaminated soil.

    		 3,6

    Automated immunoassay analyzers and reagents

    Tosoh’s fully automated immunoassay (AIA) analyzers provide vital support to health and medical care through high-speed, high-sensitivity testing for various tumors, endocrine, heart, and allergy-related issues.

    		 3

    High-silica zeolite

    As regulations for automotive exhaust gas become increasingly strict around the world, Tosoh’s high-performance high-silica zeolite (HSZ®) supports environmental protection by significantly reducing exhaust pollution.

    		 3,11

    Silica glass

       

    Our high-purity, high-quality, high-performance silica glass underpins the cutting-edge electronics industry and provides vital support to the information society. It is essential to semiconductor and liquid crystal manufacturing equipment used in artificial intelligence (AI) and information and communications technology.

    		 9

    Zirconia

       

    Tosoh’s zirconia is an advanced ceramic product featuring high strength and durability. The excellent color tone, strength, and transparency make it ideal for use in crowns and bridges, thereby contributing to personal health.

    		 3
  • A Network That Connects the World

    The Tosoh Group operates production, sales, and research bases worldwide, including the Nanyo and Yokkaichi Complexes, and has established a system that meets a wide range of needs in the global market.

    America – 9 companies

    Tosoh has established a strong presence in the field of high-value-added Specialty products while actively gathering information on new technologies and businesses from universities and venture companies.

    Europe – 9 companies

    Tosoh provides quality products and services to the diverse and constantly changing markets of Europe, the Middle East, and Africa.

    Asia – 29 companies

    In the fast-growing Asian market, Tosoh develops and provides a steady supply of products that meet regional and local needs, including PVC-related products for which demand is increasing.

    Japan – 59 companies

    The products and services offered by our reliable system have earned us trust not only in Japan but also around the world. Our advanced technologies enable us to maintain our status as a global leader.

    Nanyo Complex

    Tosoh's inaugural manufacturing base focused on Asia

    One of the biggest individual plants in Japan, the Nanyo Complex is Tosoh’s single-largest production base. With a power generation capacity equivalent to that of an electric power company and port facilities that can accommodate large vessels, it has consistently supported Tosoh’s core business since its establishment. The complex makes effective use of recyclable resources, boasting Japan’s lone bromine recycling facility, and accepting external waste at its bromine facility and cement plant.

    Yokkaichi Complex

    Major petrochemical business base located in the center of Japan

    Tosoh, a key player in the petrochemical field, operates a comprehensive petrochemical business featuring products ranging from raw materials like ethylene to polyethylene and other derivatives. To strengthen our business foundation, in recent years we have worked to further develop our Specialty business in addition to our mainstay Petrochemical and Chlor-alkali businesses.

  • Recognition

    Recognition of bromine-related historical materials as chemical heritage

    Historical materials related to the production of bromine at Tosoh Corporation, Japan's largest bromine manufacturer, were given recognition under The Chemical Society of Japan’s 12th Chemical Heritage. The bromine-related items were cited for tracing the history of bromine production in resource-poor Japan to the present day.

    Bamboo filling material for bromine separation and concentration equipment, an album depicting the repair of the bromine production facility, a porcelain bromine container, and a drawing of the porcelain bromine container were designated. A bromine distillation column and a porcelain bromine container owned by Tosoh Group company Manac Incorporated were also acknowledged under Chemical Heritage No. 056, "Bromine Production Facilities and Porcelain Containers Using Bittern and Seawater as Raw Materials.”

    ESG investment indexes

    Tosoh Corporation has been included in the following environment, social, and governance (ESG) investment indexes as of the end of September 2021. 

    • FTSE4Good Index Series
    • FTSE Blossom Japan Index
    • S&P/JPX Carbon Efficient Index
    • SOMPO Sustainability Index

    Major external recognition 

    • CDP2020 "Climate Change A-" and "Water Security B-" assessments
    • Silver medal in EcoVadis' sustainability survey
    • Recognized as a Certified Health & Productivity Management Outstanding Organization for 2021
    • Kurumin certification

    Awards

    53rd Ichimura Prize in Industry for Distinguished Achievement

    Tosoh Corporation is the recipient of the 53rd Ichimura Prize in Industry for Distinguished Achievement for its zirconia-related business, awarded by the Ichimura Foundation for New Technology. The theme of the award was "Commercialization and New Development of Microstructure-Controlled Zirconia (MCZ) Using Innovative Technologies.”

    The Ichimura Prize in Industry is a long-standing and highly respected award that honors researchers and engineers who have made outstanding achievements in promoting science and technology and the development of industry in Japan, and who have made significant contributions to the advancement of industrial fields. Tosoh’s development of zirconia technologies to date and its potential to further develop and commercialize these technologies contributed to the company garnering the prize.

    Japanese Proteomics Society Research and Development Achievement Award

    Tosoh was presented the 2020 Research and Development Achievement Award by the Japanese Proteomics Society for the first domestic launch of a new tumor marker based on proteome analysis.1 Tosoh and Yokohama City University have been conducting joint research to identify new diagnostic markers through proteome analysis. As a result of this research, Tosoh received approval in June 2020 to manufacture and market the new in vitro diagnostic drug E-TEST "TOSOH" II (TFPI2) for use in ovarian cancer blood tests. The product was released on the market in July 2021.

    1 Proteome analysis is the systematic identifying and quantifying of all proteins, or the proteome, of a cell, tissue, genome, or organism at a particular point in time.

    Fire and Disaster Management Commissioner's Award

    The Nanyo Complex Disaster Prevention Center won Japan’s Fire and Disaster Management (FDMA) Commissioner’s Award in a competition of self-protection disaster prevention organizational skills among petrochemical complexes. The contest was sponsored by the FDMA of Japan’s Ministry of Internal Affairs and Communications. Tosoh was awarded the prize for the fifth consecutive year. Thirty-one groups from companies in industrial complexes across Japan participated. All groups demonstrated the results of their daily training, and their skills were evaluated as excellent.