Petrochemical Group

Net Sales

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Olefins

Shipments of propylene and cumene decreased owing to a drop in production. Product prices decreased due to a decline in raw material and fuel prices and overseas markets.

Polymers

Domestic and export shipments of polyethylene resin decreased due to the impact of the COVID-19 pandemic. Product prices fell, reflecting a decline in naphtha prices.

Operating Income

Operating income decreased due to unfavorable trade conditions resulting from lower selling prices and the deterioration in the difference between product receipts and payments caused by lower prices of raw materials such as naphtha.

  • Polymers

    Aiming to be unique and distinctive in this business, we provide products that meet a wide range of needs while integrating the fields of polyethylene and functional polymers.

    SWOT Analysis

     Strengths

    • Lineup of high-quality products that meet a wide range of needs
    • Stable production system based on Tosoh-produced raw materials
    • World’s only manufacturer of chlorosulphonated polyethylene (CSM) in the high-end market

     Weaknesses

    • Small-scale plants
    • High plant maintenance costs

     Opportunities

    • Stable domestic market and expanding demand overseas
    • Need to respond to the shift to electric vehicles (EVs) and high-speed communications
    • Increasing health awareness triggered by COVID-19 pandemic
    • Rising environmental awareness and development of related materials

     Threats

    • Increase in production capacity of overseas competitors of raw materials derived from ethane (Middle East) and shale gas (North America)
    • Decline in demand due to deplasticization and bioplastics
    • Global economic slowdown and supply chain disruptions due to US-China trade friction and COVID-19 pandemic

    Objective

    The division's basic strategy is to promote differentiation through high-value-added products. In response to recent social issues concerning plastics (3R, decarbonized society, etc.), we will continue to focus on technological development and marketing promotion. In addition, in 2021,we are working to debottleneck CR production to increase capacity while continuing to aggressively plan investments to raise capacity and strengthen our business foundation.


    Growth Strategy

    We will promote high-value-added applications for polyethylene in the medical field such as infusion bags and eye drop containers, the food industry (low-odor containers and easy-peel materials), and the semiconductor sector (high-purity chemical containers), where cleanliness, which is one of our strengths, is required.

    In the area of functional polymers, we will focus on the automotive industry (underbody coating, metal bonding, and cold- and heat-resistant impact material), where the shift to EVs is progressing, and the medical field (medical gloves). In particular, we will develop applications for synthetic rubber (CR and CSM) in line with their respective functional capabilities.


    Message from the Senior General Manager

    The Polymers Division will continue to pursue the provision of differentiated and high-value-added products that meet the needs of customers, while promoting the development of environment-friendly technologies such as plastic recycling.

    In addition, we will continue to study and plan to deepen our ability to respond to the diverse needs of our customers, further expand our product lineup, and increase our capacity to ensure a stable supply of products, thereby contributing to society through business operations that integrate manufacturing, research, and sales.

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    Hideaki Nishioka
    Vice President
    Senior General Manager, Polymers Division

  • Olefins

    The olefins business is centered on the naphtha cracker located at the Yokkaichi Complex within the greater Kasumi Industrial Complex. Tosoh produces ethylene, propylene, and other basic petrochemical raw materials.

    SWOT Analysis

     Strengths

    • Owner of the sole naphtha cracker in the Chukyo region
    • Stable demand for derivatives
    • Agility through ownership of ethylene carrier

     Weaknesses

    • Impact of changes in demand for derivatives
    • Impact of price fluctuations of raw materials and fuels
    • Increase in maintenance costs due to aging of facilities

     Opportunities

    • Strong demand growth in Asia
    • Further downstream development (M&A related to derivatives)

     Threats

    • Economic slowdown and declining demand due to prolonged trade friction between the United States and China and the impact of the COVID-19 pandemic
    • Unexpected influx of petrochemical products from China

    Objective

    We aim to expand our value-added product line through the sale and effective use of all fractions produced by the naphtha cracker in collaboration with a robust derivative chain. In this way, we intend to expand our range of value-added products. We also aim to build a structure that will enable us to secure stable earnings regardless of changes in the business environment.


    Growth Strategy

    To further strengthen the foundation of our Commodity business, we will work to improve cost competitiveness and stabilize operations of our naphtha cracker, and deepen our Petrochemical business by integrating production, research, and sales linked with demand for derivatives.


    Message from the Senior General Manager

    In collaboration with a well-balanced and robust derivative chain, we aim to expand our value-added product line by selling each fraction produced by our naphtha cracker and using them more effectively. In order to secure stable profits in a changing business environment, we will strengthen our competitiveness by pursuing the diversification of raw materials and the improvement of naphtha cracker efficiency.

    In addition, we are aiming to explore and deepen our business by setting targets for each product line, with sales, R&D, and manufacturing working together with a focus on information sharing.

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    Hidetoshi Horiuchi
    Vice President
    Senior General Manager, Olefins Division