Our products and technologies in the Industrial Materials domain are supporting a variety of industries and societies. We are proceeding with the diversification of raw materials, including renewable resources and strengthening our business structures.
Business Lines by Segment
The Chemicals segment is expanding its business in the areas of basic petrochemicals including ethylene and propylene derived from naphtha, basic chemicals such as materials for synthetic fibers, coke and other carbon products and the industrial gas business.
We are utilizing our unique marketing capabilities, product development capabilities, and manufacturing technologies to provide synthetic resins and other products that meet advanced and specialized needs.
Main Businesses and Products
Opportunities and Risks
- *1 Performance polymers is scheduled to be moved to the high-performance polymers business of the Performance Products domain in April 2017.
- *2 In July 2016, MCHC decided on the equity interest transfer of the terephthalic acid business in India and China.
Review of Segments in Fiscal 2015
APTSIS 15 Step 2 Review and Forecast
Chemicals recorded a ¥12.3 billion surplus compared to the operating income target in APTSIS 15, reflecting the addition of TNSC to the scope of consolidation.
Operating income in the Polymers segment exceeded the target in APTSIS 15 by ¥8.3 billion, owing in part to fixed cost reductions and improvement in the spread between product and raw material prices, such as polyolefin.
The business environment for this segment is likely to remain challenging, amid shrinking demand for petrochemical products in Japan and unstable commodity prices for products. Accordingly, we aim to increase cost competitiveness and accelerate global business development.
Business Portfolios (by Business Unit)
Plan Values APTSIS 20 Five-Year Plan (J-GAAP)
APTSIS 20 Action Plans
- Aim to restructure crackers by unification of naphtha crackers in Mizushima in 2016
- Continue extensive cost reduction
- Shift to high-performance products, increase proportion of high-value-added products
- Implementation of drastic measures in terephthalic acid business (In July 2016, MCHC decided on the equity interest transfer of the terephthalic acid business in India and China.)
■ Carbon Products
- Repairing coke oven batteries in planned manner, maintain sales to overseas steelmakers
- For high-performance graphite and carbon black, promote development/sales expansion of high-performance products
- “Jump start” of new Saudi JV planned for full operation in 2017
- Ensure competitiveness and stable, high ROS by production system optimization
- Development of new fields and creation of new applications by expansion of high-performance product lineup
■ Industrial Gases
- Promote greater streamlining and optimizing to maintain a stable revenue base in Japan
- Promote M&As on global scale and strategically invest management resources in overseas markets and steadily take in growth opportunities
Contribute to stable earnings through superior competitiveness in monomers and an integrated value chain by differentiating and advancing functionality of polymers
MRC has a global network of production and sales bases as the No. 1 supplier of MMA in the world with an approximately 40% share of global production capacity. MRC has built a robust business model with high cost competitiveness and a broad value chain, ranging from commodity products to high-performance products, beginning with MMA monomers and extending to polymers and processed products.
MMA contributes broadly to the advancement of industry and society as a basic material used in acrylic resins (MMA polymers) and other resin modifiers, as well as in high-performance coatings.
Acrylic resins, primary product from MMA, offer high transparency and excellent weatherability, and are used in diverse end products such as signage for convenience stores, lighting, automobile lamp covers, the transparent parts of home appliances, sanitary ware, and aquarium panels. MMA demand is likely to increase in the future.
The value that MRC provides to customers is the capability to support their growth strategies. Along with borderless business, companies can choose where to locate their plants and production bases around the world. By supplying products and services where customers need them, whether it be in Europe, the U.S. or Asia, MRC supports the growth strategies of its customers. Another unique value is its ability to supply MMA-related products like a one-stop shop. With technological prowess, MRC is able to provide high-quality, finely customized solutions that fulfill the needs of its customers, drawing from its broad product lines, starting from MMA monomers, polymers and processed products which include molding materials, resin sheets, resin improvers, and plastic films, as well as coating materials, optical fiber, and rod lenses.
In a bid to increase competitiveness in the MMA business, we are collaborating with Saudi Basic Industries Corporation on the construction of an MMA plant in Saudi Arabia that uses a new ethylene method*. With annual production capacity of 250,000 tons, it will be one of the largest MMA plants in the world. We are also considering the construction of a new MMA plant in North America that uses the same production method with shale gas as a feedstock. We aim to improve profitability through this strategy to expand MMA business lines, from monomers to polymers.
* In 2008, the new ethylene method was industrialized for the first time in the world and uses commodity chemicals as feedstock, such as methanol and ethylene. Scaling up facilities is also relatively straightforward, so the new ethylene method is highly likely to have cost advantages over the other traditional production methods.