By leveraging the competitive advantage of our domestic bases and tapping into the Asian market in added-value fields, we aim to secure stable earnings and build a framework that serves as a cornerstone business and supports the Group as a whole.

Basic Information

Mission of the Basic Materials domain

Centering on petrochemicals and basic chemicals, we provide materials in a wide range of fields in this business, such as automotive, housing, consumer electronics, infrastructure, and food packaging. We aim to forge a presence in Asia, secure stable earnings, and build a cornerstone business by providing distinctive technologies, expanding our lineup of value-added products, and further strengthening our cost competitiveness.

Business vision

We are substantially improving our earnings structure by steadily executing business restructuring. At the same time, we are working to further strengthen competitiveness of the basic raw material ethylene. We are also mounting an effort to stabilize operations and improve profitability by expanding sales of EVOLUE™ and other ethylene-based high value-added polymers.
Despite the uncertainty and volatility in the environment surrounding this business, we are striving to further deepen its operations by continuing to implement thorough cost reductions, expand our differentiated products, and maintain our high operating rate by sticking to our local production for local consumption approach. In doing so, we aim to build a stable earnings base that is resistant to changes in market prices and the supply-demand balance.

Market analysis and strategies

Opportunities and risks

  • Shift to the high-performance packaging domain/market
  • Growing need to address environmental issues
  • Influx of US shale and polyolefins
  • Economic slowdown mainly owing to US-China trade friction
  • Bulk and commodity product price volatility in Asia
  • Influx of imported products and worsening export terms of trade due to the strong yen
  • Shrinking domestic demand and slowing economic growth in China

Strengths

  • Globally competitive naphtha crackers
  • Metallocene and other polyolefin catalytic technologies
  • Distinctive differentiated products and derivatives
  • Global expansion of polyurethane system house business based on high-performance polyols

Basic strategies

Deepen our cornerstone business by completing its restructuring, strengthening cost competitiveness, expanding distinctive value-added derivative products, and actively addressing environmental issues

Specific strategies

Petrochemical feedstocks & licensing

  • Further strengthen competitiveness of crackers and expand catalyst and licensing businesses
  • Further deepen petrochemicals business, including production balance and distribution

Polyolefins

  • Expand value-added fields using polyolefin catalytic technologies
  • Build long-term relationships of trust with customers in Japan
  • Enhance cooperation with the Mobility domain

Polyurethanes

  • Accelerate global expansion leveraging advanced formulation design technology utilizing high-performance materials
  • Expand eco-friendly products such as biomass-based polyurethane

Basic chemicals

  • Secure stable earnings through implementation of thorough cost reductions, promotion of local production for local consumption, and reinforcement of derivatives
  • Actively adopt AI, IoT, and other sophisticated production technologies

Strategic Product Lineups

Main Products

Petrochemicals

Ethylene, Propylene, High density polyethylene, Metallocene linear low density polyethylene (EVOLUE™), Linear low density polyethylene, Polypropylene, Olefin polymerization catalysts

Basic Chemicals

Phenol, Bisphenol A, Acetone, Isopropyl alcohol, Methyl isobutyl ketone, Purified terephthalic acid, PET resin, Ethylene oxide, Ethylene glycol, Hydroquinone, Meta/Para-cresol, Ammonia, Urea, Melamine, Semiconductor gas

Departments and Products

Phenols Division
PTA & PET Division
Industrial Chemicals Division
Petrochemical Feedstocks Division
Licensing Division
Prime Polymer Co., Ltd.

Blue Value™ and Rose Value™ products in the Basic Materials domain

Blue Value Environmental contribution value
Details
Rose Value QOL improvement value
Details
Blue Value

Exhaust gas reduction agent

AdBlue™ *

  • Reduces CO2
  • Coexists with nature

Reduces NOx emissions.
Contributes to fuel efficiency.

*AdBlue™ is a trademark of the German Association of the Automotive Industry.