Mitsubishi Chemical HoldingsTHE KAITEKI COMPANY

Overview of Business Segments : Performance Products Domain

Focusing on five growing markets and seeking to orchestrate the Group’s wide range of products and technologies while pursuing differentiation and improved performance, we will offer diverse solutions to each market.

 Performance Products Domain

Major Businesses and Products

Functional Products

Fiscal 2016 Revenue

¥744.6 billion

Information, electronics & display
Information, electronics & display
Optical films
We will swiftly respond to markets expanding globally and increasingly sophisticated needs, such as polyester films and optical clear adhesive sheets, and support the advancement of displays.
Information and Electronics Materials
We will focus on developing and selling products and services that create new value consistent with customers’ needs, including various materials for FPD(Flat Panel Display) and precision cleaning for semiconductors.
Optical films Optical PVOH film Precision cleaning Color resist
High-performance films
High-performance films
High-performance films
Through the optimal combination of technologies including polymer material design, film forming, surface treatment and composition, we offer products with added “functionalities” such as gas barrier property, weather resistance, moisture permeability, easy-opening, applied in different markets including food, industrial, and healthcare.
High-performance films(Food packaging materials, Industrial-use films, Medical and sanitary films)
Environment & living solutions
Environment & living solutions
Aqua solutions
Through offerings such as water treatment chemicals, membranes and ion-exchange resins, we cover the total water treatment process from drinking water to wastewater, aiming to provide solutions on a worldwide basis to any and all water-related issues.
Agricultural solutions
We offer agricultural materials such as high performance films with superior durability for greenhouses, and plant factories of cultivating high-quality vegetables stably throughout the year.
Aqua solutions Separation materials Separator and aqua chemicals Agricultural solutions Infrastructure solutions
Advanced moldings & composites
Advanced moldings & composites
High-performance engineering plastics
The Quadrant Group offers engineering plastics as a leading global manufacturer that develops business in a wide range of fields such as industrial machinery, automobiles, aircrafts, and medical use.
Carbon fiber and composite materials
We have realized one of the most integrated product chains in the world, covering from PAN-based and pitchbased carbon fibers to intermediates and composite products using fibers as base materials.
High-performance engineering plastics Carbon fiber and composite materials Alumina fibers Functional moldings and composites Fibers and textiles

Functional Chemicals

Fiscal 2016 Revenue

¥327.3 billion

Advanced polymers
Advanced polymers
Performance polymers
With a broad product range centered around thermoplastic elastomers, performance polyolefins and PVC compounds, we contribute to customers’ innovation in areas from healthcare and industry to daily consumer goods.
Phenol and polycarbonate
Integrating our proprietary manufacturing process technologies with polymer design technologies and compound technologies, we have expanded our business globally with one of the largest market shares in Asia.
Performance polymers Phenol and polycarbonate Polybutylene terephthalate
Sustainable polymers
High-performance chemicals
High-performance chemicals
Coating materials
We provide added value under strong consciousness of sustainability with polymers for paints, inks, adhesives, hair care materials, and resist materials for semiconductors based on advanced technologies of synthesis, formulation, and evaluation.
Food ingredients
We have expanded our business to a wide range of fields from food to pharmaceuticals and cosmetics in product groups such as emulsifiers—represented by our sugar ester which has the leading global market share —and vitamin E.
Coating materials Epoxy resins Resin additives Food ingredients
New energy
New energy
Lithium-ion battery materials
Targeting the increasingly sophisticated needs of customers, we are developing electrolytes and anode materials primarily for the batteries equipped in electric vehicles based on comprehensive high levels of technology and a global supply system covering from material development to safety evaluation.
LED materials & Scintillator
Phosphors used in LED backlights and lighting, gallium nitride (GaN) substrates used in high-performance LED lighting and lasers, and scintillators used for security and medical diagnostic purposes are all widely used.
Lithium-ion battery materials LED materials (GaN substrates, phosphors) Scintillator

SWOT Analysis

SWOT Analysis

Performance Products Domain APTSIS 20

Policies
Accelerate growth by generating synergies, and supply high-performance products/solutions globally to growth markets
Key Strategies
■Expand high-performance, high-value-added products business and solutions business
■Accelerate global development
■Strengthen innovation by integration of three chemical operating companies
■Achieve profitability of new energy businesses at an early stage
Plan Values

Growth Strategies of Information, Electronics & Display

We will integrate the IT and electronics-related material businesses including color resist and various optical film operations used for display applications, strengthen access to the market by sharing marketing information and customer needs, and adapt to technological innovations in the marketplace in a speedy and seamless fashion by accelerating efforts to develop products that match customer needs. In doing so, we will offer solutions to address many different requirements of customers, such as reduced thickness through a combination of materials and processing technologies, product development in response to the OLED market expansion, and reduced lead times and costs for customers through compounding and integration.

Sample configuration of liquid crystal displays

Growth Strategies of High-performance Films

By orchestrating different businesses such as Advanced polymers and High-performance chemicals, we will strengthen its product development capabilities and promote new technologies and products to become a strategic force at an early stage. In addition, for existing businesses, primarily packaging, labels, and films, we will realize growth strategies by fully utilizing the sites in Japan, the U.S. and Europe and our overseas network while actively promoting M&A, alliances and so on. Specifically, we are considering a roll-out of Japanese high-value-added products with food barrier packaging utilizing European and the U.S.ʼs polyester film plants to the U.S.ʼs and European markets and expanding food packaging materials aimed at the growing Southeast Asian market.

Growth Strategies of High-performance Films

Growth Strategies of New Energy

We will promote early commercialization and profitability of new energy-related businesses that contribute to the realization of sustainable society, and work to nurture businesses responsible for the next generation. We will respond to the increasingly sophisticated needs for lithium-ion battery materials by developing high-performance electrolyte additives and anode materials. In the area of energy transduction materials, we will launch new types of phosphors at an early stage, develop products that utilize the properties of GaN, and expand the businesses for scintillators used for security and medical diagnostic purposes.

Provide various solutions to one of the five focus markets; Automobiles, Aircraft (Mobility)

In the Performance Products domain, we will focus on the five markets of “Automobiles, Aircraft (Mobility),” “Packaging, Labels, Films,” “IT, Electronics, Displays,” “Environment, Energy,” and “Medical, Food, Bio Products,” and accelerate growth. Here, we will introduce our growth strategies for one of these five markets in the hope of the MCHC Groupʼs Automobiles, Aircraft (Mobility).

While the automobile market is expected to undergo significant growth in developing markets moving forward, particularly China, it is also expected that environmental measures such as reduced dependence on fossil fuels and lower CO2 emissions will be further advanced, leading to the widespread adoption of electric vehicles and fuel cell vehicles, along with greater fuel efficiency through reduced vehicle weight.

The MCHC Group carries numerous products that cater to such market environments. For instance, as materials that help reduce weight, we deal with carbon fiber composite materials used as structural components and polyethylene resins used in fuel tanks. We provide a broad range of solutions, in terms of environment-friendly materials including alumina fibers used as support mats for exhaust gas cleaning devices, bio-based engineering plastics used as interior and exterior finishing materials, lithium-ion battery materials, and also functional additive and strengthening material including thermoplastic elastomers used for interior surfaces.

Before the integration, these products had been developed and sold through the independent routes of three different companies. Through the integration of these companies, related business divisions are now working in close coordination and accelerating synergy. For instance, by sharing marketing information, proposing distinctive composite products between businesses and consolidating sales routes, customers can now be presented with unified proposals. In fact, using the sales route of the Quadrant group, a global leader in engineering plastics, has started to yield results, including proposals for carbon fiber composite materials pitched to European automobile manufactures. Moreover, by combining the matrix resins and additives possessed by the High Performance Chemicals Division with carbon fibers, we are considering proposing composite products with distinct qualities to growth markets. While orchestrating the efforts of related business divisions, we will continue to accelerate growth around the most effective growth drivers.

Provide various solutions to one of the five focus markets; Automobiles, Aircraft (Mobility)
Solutions for Environmental and Social Issues

Carbon fiber materials (SMC) used for back doors of Prius PHVs

Carbon fiber materials SMC (Sheet Molding Compound) are used in the frame of the back door of the new Prius PHV released by Toyota Motor Corporation in February 2017.

SMC developed by MCC is a type of intermediate material for CFRPs and a sheet-shaped material in which carbon fibers cut into several-centimeter lengths are dispersed in resin. The SMC offers advantages over other CFRP materials: it can be processed into a component in a short period of time, i.e. roughly 2 to 5 minutes, by press molding, allowing components with complex shapes to be molded. In addition, as its mechanical properties are almost uniform, carbon fibers can be used relatively easily to obtain higher strength based on conventional component design expertise. Moreover, improved fuel efficiency from lighter vehicle weight contributes to reduce CO2 emissions.

Solutions for Environmental and Social Issues