Mitsubishi Chemical HoldingsTHE KAITEKI COMPANY

Overview of Industrial Materials Domain

MCHC will continue to advance the diversification of raw materials, including renewable resources, provide products and technologies through a framework that reflects the needs of the time, and support growing markets.

Major Businesses and Products

MMA

FY2017 Revenue

¥385.9 billion


FY2017 Core Operating Income

¥109.6 billion

MMA
MMA
We possess three main manufacturing methods*that use different raw materials and maintain a leading 40% global market share. We aim to realize the most advanced and sophisticated operations with an established global supply chain that takes advantage of raw material availability for each plant as well as cost competitiveness.
*Acetone cyanohydrin (ACH) method, C4 direct oxidation process, and new ethylene process (Alpha Technology)
PMMA
PMMA (acrylic resin) has various excellent characteristics such as superior transparency, strong weatherability and formability. We operate business with a variety of PMMA products including acrylic sheets for signs, display shelves and aquarium tanks, molding materials for automotive products, optical components and home electronic parts, and plastic optical fibers.
MMA PMMA

Petrochemicals

FY2017 Revenue

¥538.0 billion


FY2017 Core Operating Income

¥25.9 billion

Petrochemicals
Basic petrochemicals and basic chemical derivatives
Our ethylene plants are located in Kashima and Mizushima*in Japan. We provide olefins such as ethylene and propylene, and aromatics such as benzene and toluene. We also deal in various ethylene, propylene and C4 derivatives, terephthalic acid, and more.
*The Mizushima ethylene plant is owned by Asahi Kasei Mitsubishi Chemical Ethylene, which is jointly owned by Asahi Kasei and Mitsubishi Chemical.
Polyolefins
Our polyolefin (polyethylene and polypropylene) business offers high quality and high performance product lineups in a wide range of fields including automobiles, electrical wires, medical devices and food packaging based on proprietary catalyst and process technologies. We are also expanding its business outside Japan as a global supplier of high performance materials while developing the growing global markets including the automobile industry.
Basic petrochemicals Basic chemical derivatives Polyolefins

Carbon Products

FY2017 Revenue

¥253.4 billion


FY2017 Core Operating Income

¥12.4 billion

Carbon Products
Coke
Coke supports the global steel industries, and various products are also produced from the tar created by the coke manufacturing process. Each year we import coals from countries around the world and produce coke of different qualities by blending around 60-70 types of raw materials in various combinations.
Carbon black
Carbon black is a material used for products found in daily life, such as tires, printing ink, and colored resins. We manufacture carbon black under consistent quality control throughout the process beginning from raw material processing to the final products.
Coke Carbon material Carbon black Synthetic rubber

Industrial Gases

FY2017 Revenue

¥638.7 billion


FY2017 Core Operating Income

¥57.5 billion

Industrial Gases
Industrial gases
We have a leading 40% share of the domestic market for industrial gases, mainly oxygen, nitrogen and argon. We are expanding our business areas overseas while focusing on North America, Asia and Oceania as key markets.
Industrial gas-related equipment and facilities
Besides our domestic production of Japan’s first air separation plant, we have earned a stellar reputation as a world’s top-class plant manufacturer through the production of space-simulation chambers and liquid helium-related equipment.
Industrial Gases Industrial Gas-related equipment and facilities

SWOT Analysis

SWOT Analysis

APTSIS 20

Policies
Stabilization of earnings by strengthening of costcompetitiveness
Acceleration of growth and strengthening of presence in the global market
Key Strategies
Strengthening of cost-competitiveness
Acceleration of global development (MMA, industrial gases)
Plan Values

Strategic Approach to Strengthening Competitiveness of Petrochemicals

Up to 2016, we had specific aims for large-scale structural reforms, including the consolidation of ethylene cracker and withdrawal from unprofitable businesses. Looking ahead, we will continue to strengthen competitiveness by further reinforcing the foundations of production sites and optimizing production while seeking to maximize earnings.
As for the optimization of polyolefin production, in 2017, we stopped the system in the production facility using the slurry technique at Japan Polypropylene Corporation Goi Plant as part of the scrap-and-build plan. We have decided to construct a new system in the polypropylene production facility using the gas-phase process (our unique HORIZONE method), which can realize high-quality and high-efficiency production, at the same plant, aiming for start of operation in October 2019.
We will continue to maximize earnings through improved added value by targeting the unutilized fraction between cracker and derivatives, the development of high-performance polyethylene and high-performance polypropylene, and the expansion of technology licenses through the refinement of possessed technologies.

MMA Production Sites and Market Share by Region

Growth Strategies of Industrial Gases

Taiyo Nippon Sanso Corporation (TNSC), which has a leading 40% share of the domestic market for industrial gases, will work to promote expansion by setting structural reform, innovation, globalization and M&A as the pillars of our growth strategy, aiming to improve global competitiveness and secure a firm footing in the industrial gas market where oligopolization by restructuring is taking place.
Domestically, by maximizing the power of the Group through the expansion of gas and gas-related businesses, including electronics material gases and the medical business, as well as the equipment business and strengthening of coordination among the sales divisions at Group companies, we will further reinforce our industryleading position while continuously growing. Overseas, we will aggressively promote capital investment and M&A activities mainly in North America, Asia, and Oceania, where further growth is expected, while considering expansion into new business areas.

*In July 2018, MCHC announced the conclusion of the share purchase agreement to acquire a part of European businesses of U.S. company Praxair, Inc., for 5,000 million euro. The share transfer is planned for November 2018.

Strategic Approach to Strengthening Competitiveness of Petrochemicals
FOCUS

MMA - Establish a Strong Global Supply Network

With its global production sites and sales networks, Mitsubishi Chemical Corporation (MCC) has established a strong business model with high cost-competitiveness and a wide range of value chains, from MMA monomers to polymers and processed products, as well as from multipurpose products to high-performance products, as the world's leading supplier of MMA, boasting approximately a 40% share of the global production capacity.
In April 2018, the plant with the world’s largest production capacity of MMA monomers (250 thousand tons/year), which was established as a joint venture with Saudi Basic Industries Corporation in Saudi Arabia, has commenced commercial operations. This plant makes maximum use of the highly cost-competitive gas raw materials, utilities, and infrastructures in Saudi Arabia based on the new Needle Coke Mitsubishi Chemical Corporation (MCC) has succeeded in the production of the world's first coal-based needle coke using coal tar, which is generated when coal is distilled (steamed and roasted) as a raw material. Demand for needle coke is rapidly increasing, mainly as a raw material for graphite electrodes in electric furnace steel and for anode materials for lithium-ion secondary batteries. Behind the rapid increase in demand is the rapid recovery of electric furnace operations due to the prohibition of illegally produced steel mill products in China and the global expansion of the electric vehicle market. There are only two companies in the world (excluding China) that produce needle coke from coal. The electrodes that use ethylene process (Alpha Technology), which is the Group’s unique technology that produces MMA monomers from ethylene.
In the U.S., we are also performing investigations on business development regarding the construction of another MMA monomer production facility that has a production capability of 250 thousand tons based on the new ethylene process, using shale gas-based ethylene as a raw material.
To maintain our overwhelming competitive advantage as having the world's leading share of MMA business, we will continue to build optimal production systems for plants located all over the world.

M&A戦略の推進

Solutions for Environmental and Social Issues

Needle Coke

Mitsubishi Chemical Corporation (MCC) has succeeded in the production of the world's first coal-based needle coke using coal tar, which is generated when coal is distilled (steamed and roasted) as a raw material. Demand for needle coke is rapidly increasing, mainly as a raw material for graphite electrodes in electric furnace steel and for anode materials for lithium-ion secondary batteries. Behind the rapid increase in demand is the rapid recovery of electric furnace operations due to the prohibition of illegally produced steel mill products in China and the global expansion of the electric vehicle market.
There are only two companies in the world (excluding China) that produce needle coke from coal. The electrodes that use our needle coke have superior characteristics, such as lower thermal expansion coefficients and electric resistibility, compared to conventional petroleum-based needle coke and extremely low power consumption of the electrodes themselves.
We are contributing to reducing the environmental impact by providing needle coke as a raw material for graphite electrodes in electric furnace steel, which generate lower CO2 emissions than blast furnaces, and anode materials for lithium-ion secondary batteries, which are used for electric vehicles.