Basic Materials Business Sector
Basic Chemicals Business Sector handles the global manufacture and sales of phenols, acetone, bisphenol A, terephthalic acid, PET resin, industrial chemicals, and polyurethane materials.
These products are used in a wide range of areas such as engineering plastics and cushions for automobile, planes, and home appliances, clothing fiber, food and beverage containers, environmental protection such as purification of water and gases, and raw material used in the manufacturing processes of semiconductors and LCDs.
Mission and Vision of the Basic Materials Business Sector
Over the past several years, the Basic Materials Business Sector has undertaken a major restructuring of its activities, including substantial cutbacks in production capacity. At the same time, positive steps are being taken to substantially improve our earnings structure by restructuring the bulk and commodity product business, which is a key target under the 2014 Mid-Term Business Plan.
Minimize the Downward Profit Risk by Business Structure Improvement
Despite the cloud of uncertainty that continues to hover over petrochemicals supply and demand from 2018, we adhere strictly to a policy of rationalization, make every effort to add value to our derivatives lineup, and maintain high run rates in line with the growing trend toward local production for local consumption. As a result, we will put in place a stable earnings platform that is resilient to changes in the external environment, including shifts in market conditions and the balance between supply and demand.
Operating income from Basic Materials domain
(billions of yen)
- Domestic structure based on two naphtha cracker facilities (one east, one west)
- Metallocene and other polyolefin catalytic technologies
- Robust cost competitiveness and polyurethane system business global facility network growth underpinned by the establishment of MCNS
Opportunities & Risks
- Infusion of U.S. shale oil- and Chinese coal chemical-derived production ▼
- Bulk and commodity product price deterioration in Asia ▼
- Influx of imported products and worsening export terms amid the strong yen
- Surging crude oil prices ▼
- Shrinking domestic demand and slowing Chinese economic growth ▼
- Rising need for highly functional packaging and eco-friendly products
- Expanding value-added fields through new polyolefin products
- Accelerating global expansion of new system houses by leveraging synergies with MCNS
- Establishing a stable earnings structure by completing restructuring
Strategic Product Lineups
Ethylene, Propylene, High density polyethylene, Metallocene linear low density polyethylene (EVOLUE™), Linear low-density polyethylene, Polypropylene, Olefin polymerization catalysts
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
Polyurethane raw materials
TDI(COSMONATE™), MDI(COSMONATE™), PPG(ACTOCOL™, ECONYKOL™)
Departments and Products
- MSD-100（alpha-methylstyrene dimer）
- Crued Acetophenone
- MIBK (methyl isobutyl ketone)
- DIBK (diisobutyl ketone)
- MIBC (methyl isobutyl carbinol)
- Hexylene glycol（HG）
- Isopropyl Alcohol（IPA）
- Bisphenol A
- EPOMIK™（epoxy resin）
- Purified terephthalic acid
- MITSUI PET™ (polyethylene-terephthalate)
- Ethylene oxide
- Ethylene glycol
- HA-EOA (High alcohol ethoxylate)
- Sodium Hydroxide
- Sodium sulphite
- Hydrochloric acid
- Methyl methacrylate (MMA)
- Formic methyl
- bombe ammonia
- Meta / Para-cresol
- Nitrogen trifluoride
- Silicon tetrafluoride
- Boron Nitride Powder
- C5 fraction
- Olefin polymerization catalyst
- Prime Polypro™
- Prime TPO™
Aiming for Medium- and Long-Term Growth
Growing Toward 2025
Despite a delay, the impact of the expansion of facilities for polyethylene and other production derived from shale gas and Chinese coal chemicals is expected to be felt in Asia from 2018. We will look to build a Basic Materials business that has a strong presence in the Asian market by reinforcing our cost competitiveness and shifting to high-value-added products
In the petrochemical feedstock business, energies will be channeled toward further reinforcing the cost competitiveness of
naphtha cracker operations by ensuring full sales on full production capacity and the stable procurement of raw materials at low prices. In the polyolefin business, we will secure stable profits while at the same time considering the implementation of a scrap and build policy with respect to small-scale and obsolete facilities in Japan.
By promoting sales of EVOLUE™, we intend to capture a share of demand in the highly functional sealant field, which is projected to enjoy rapid growth in the Asian market. At the same time, we will step up the utilization rate at our plant in Singapore, which has an annual capacity of 300,000 tons. Meanwhile, we will look to create new demand by addressing increasingly differentiated needs through bases in Japan. Among a host of initiatives, we will continue to promote the development of the metallocene long-chain branching-type PE, EVOLUE™ E, a next-generation product that is easy to process while remaining exceptionally strong.
In the basic chemicals business, we will maintain our focus on stabilizing earnings. To this end, we will establish full sales and full run rates through local production for local consumption, promote thoroughgoing rationalization, and strengthen derivatives.
In the polyurethanes business, we will accelerate the pace of global business development focusing mainly on the systems business of Mitsui Chemicals & SKC Polyurethane. In addition to utilizing existing bases, we will consider setting up new production bases for the system house business.