The Mitsui Chemicals Group will leverage its comprehensive strengths to continue developing businesses that help solve social challenges by, for example, boosting food production and reducing food loss.

Business Vision

Social Issues and Needs

Rapid growth in the world’s population has led to severe shortages of food, making it imperative for society to reduce food loss and waste and stabilize agricultural production. Moreover, needs have been rising for safe and reliable food sources that also have less of an impact on the environment.

Business Vision

Put in place a next generation pipeline that will serve as another cornerstone by maximizing the use of resources both within and outside the Group, accelerating new business expansion as well as overseas business development, for the sustainable growth of the Mitsui Chemicals Group.

Market Analysis and Strategic Issues

Opportunities & Risks

  • Increasing need for environmental contribution
  • Need for boosting food production and reducing food loss due to long-term population growth
  • An expansion in demand for packaging materials due to the development of the food processing industry and improving standards of living in Asia
  • A decrease in demand in Japan and a murky outlook for China and other emerging economies

Strengths

  • A lineup of high-performance products
  • Research capabilities in designing and creating new materials
  • Developmental capabilities rooted in collaboration with partner companies
  • Good rapport with influential customers

Challenges

  • Strengthening of global market cultivation by establishing a “market-oriented” framework
  • Emphasis on high added-value market
  • Expanding development and investment in high-performance products that can also meet niche market needs
  • Developing a lineup of next generation core products

Main Products

Coatings & Engineering Materials

Polyurethane resins (TAKENATE, TAKELAC), Packaging adhesives, Polyolefin resins, Coating resins, Sealants for displays

Packaging Films

Biaxially oriented polypropylene films, Cast polypropylene films, Linear low-density polyethylene film (T.U.X)

Industrial Films & Sheets

Semiconductor and electronic components manufacturing process films (ICROS TAPE), Foam sheets, Encapsulant sheets for solar cells (SOLAR ASCE, SOLAR EVA)

Agrochemicals

Insecticides, Fungicides, Herbicides, Non-crop specialty chemicals, Pet medication ingredients

Departments and Products

We Protect. You enjoy. Packaging Materials
Coatings & Engineering Materials Division
Mitsui Chemicals Tohcello, Inc.
Mitsui Chemicals Agro, Inc.

Fiscal 2017 Business Overview

The sales volume of performance films and sheets expanded as the Group captured robust demand. The Group established a new subsidiary in Taiwan, a major source of global demand, for manufacturing and marketing ICROS TAPE, which commands the largest share of the global market for protective tape used in semiconductor manufacturing processes. In agrochemicals, the Group decided to form an alliance with the major European companies BASF and Bayer in new product development, thereby accelerating the global expansion of the agrochemical business.

Market Share and Market Growth Rate of Mainstay Products

Agrochemicals
  Market Share Market Growth Rate*
Global 2.6%
Asia 3.8%
Japan 10% 0.7%

*FY2016–2021

T.U.X (Share as a high-performance sealant)
  Market Share Market Growth Rate*
Japan 1st 1–2%

*FY2017

Increase/Decrease in Operating Income

Increase/Decrease in Operating Income

¥19.9 billion (¥(0.7) billion year on year)
Volume  +¥3.9 billion

  • Stable sales of coating & engineering materials, performance films & sheets and agrochemicals

Terms of trade  ¥(2.1) billion

  • Decrease from unfavorable terms of trade due to upward swing in raw material prices, etc.

Costs  ¥(2.5) billion

  • Development costs, etc.

Sales by Product

Sales by Product

Sales by Region

Sales by Region

Trends in Net Sales and Operating Income

Trends in Net Sales and Operating Income

Fiscal 2025 Target

Operating income: ¥40.0 billion + New businesses

The Mitsui Chemicals Group recognizes the pressing need to reduce food loss and waste, ensure food safety, and increase food production, and reduce environmental impact as a part of its efforts to address a variety of social issues. In addition to placing particular emphasis on high-growth and high-value-added markets, the Group will work to capture a share of burgeoning demand overseas, especially in Asia, while further expanding its business. In addition, the Group will endeavor to promote increased collaboration between business divisions and to develop core products that will provide a platform for further growth.

Growth Strategies
  • In agrochemicals, we will continue working to maintain growth through the five next generation active ingredients, reinforce R&D, and strengthen our overseas business base.
  • In coatings & engineering materials, we will continue aiming to steadily spur demand for new products and brands and expand the scale of each product cluster by accelerating overseas expansion.
  • In functional films and sheets, we will continue aiming to accelerate the overseas expansion of the food packaging materials business and expanding the business scale of industrial films.
  • To accelerate the growth of the food packaging business, we will continue launching solution businesses aimed at maintaining the quality of food products.
Investment Strategies
  • In agrochemicals, we will continue aiming to steadily promote capital investment for the five next generation active ingredients and further accelerate growth.
  • In functional films and sheets, we will continue actively promoting capital investment for expanding the scale of industrial films and strengthening the business base of packaging.
Fiscal 2018 Plan

In fiscal 2018, despite risks posed by rising raw materials prices, we expect to secure a stable profit base thanks to an expansion in sales amid firm domestic demand and wider overseas expansion. Building on sales growth in its lineup of specialty isocyanate products, high-performance packaging materials, fungicides, and insecticides, the Group will expand its marketing efforts, especially in Asia, and focus on further sales expansion.

Strategic Product Lineups

Agrochemicals
High-Performance Agrochemicals That Help Ensure Food Supply Stability

Agricultural production will likely continue to expand due to growing demand amid a rising global population and economic development in emerging countries.
To launch agrochemical products that boost crop yields in line with local needs, the Group company Mitsui Chemicals Agro, Inc. is actively working to establish a business base and strengthen alliances with overseas partners, especially in Asia. Regarding the insecticide dinotefuran and other active ingredients, the company is tapping the expertise of its partners to develop agrochemicals, expand the number of countries where these products are registered, and accelerate the pace of market release.
In addition, regarding next generation active ingredients, we released the fungicide tolprocarb in 2015, and we are planning to release the herbicide cyclopyrimorate, the insecticide broflanilide, and the fungicide quinofumelin after 2019. To meet global demand, we have signed agreements with major global agrochemical companies to promote expansion of broflanilide and quinofumelin.
Mitsui Chemicals Agro, Inc. possesses advanced agrochemical discovery technologies backed by a long track record of molecular design, organic synthesis, and biological evaluation. By continuing to discover highly unique next generation active ingredients and to develop agrochemical products, the company helps ensure food supply stability as a R&D-based agrochemical manufacturer with a global presence.

Insecticides Broflanilide

Long-Term Commercialization Agreement with BASF

In 2017, Mitsui Chemicals Agro signed a long-term commercialization agreement with BASF. Leveraging the strengths of both companies, the company will accelerate global development, especially in Japan, Asia, the United States, and Europe, and help raise food production and improve the lives of people around the world.

Applications: Potential use applications for the new insecticide in leafy and fruiting vegetables, as well as urban pest control settings
Targeted pests: Many problematic insect pests in crops, and non-crop pests such as termites and flies
Long-Term Commercialization Agreement with BASF
Fungicides Quinofumelin

Global Licensing Agreement with Bayer

In 2018, Mitsui Chemicals Agro signed a licensing agreement related to the global development and marketing of quinofumelin with Bayer. Through this agreement, the company will continue helping to raise global food production while accelerating development of its overseas business to Asia, the United States, Europe, South America, and beyond.

Applications: Potential use applications for the new fungicide in fruit trees, fruiting vegetables, and oil seed rape
Targeted diseases: Fungal diseases including scab, gray mold, anthracnose, and rice blast
Global Licensing Agreement with Bayer
Coatings & Engineering Materials
Expansion of Specialty Isocyanate Product Lineup

To better meet the varied needs of consumers, we are developing a wide range of applications for products in our extensive lineup of coatings and engineering materials, including TAKENATE, TAKELAC, and CHEMIPEARL, which are employed in high-performance packaging materials. The Group was the first in the world to develop the specialty isocyanates FORTIMO and STABiO. These products join a lineup that includes meta-xylylene diisocyanate (XDI), a high-performance product that enjoys wide market recognition. We are developing a wide range of applications for this lineup of specialty isocyanates as well as derivative products that incorporate them. All our new products create new customer value and are expected to help strengthen and expand the coatings & engineering materials business.

Expansion of Specialty Isocyanate Product Lineup
Functional Films and Sheets (Packaging Films Field)
More Functional Food Packaging and Development in Asia

The packaging materials market in Asia has considerable growth potential as living standards improve and the region develops as a food processing and export center. The Mitsui Chemicals Group is keeping ahead of its rivals with production bases in Asia for products like T.U.X, a high-performance sealant film; EVOLUE, one of its raw materials, which now boasts approximately 60% market share in Asia; as well as such multi-material adhesives as TAKENATE, TAKELAC and ADMER that are capable of precisely meeting our customers’ needs. Through technical support and cross-sectional marketing, we are promoting business development in Asia.

Functional Films and Sheets (Industrial Films Field)
Expanding the ICROS TAPE Business

ICROS TAPE is a surface protection tape used for silicon wafer backgrinding in the post-fabrication process of semiconductors. Among the major competitive manufacturers of this kind of tape, we are the only manufacturer and processor of resins, and we possess the largest share of the global market thanks to our resin design and film forming technologies.

New Plant

To keep up with rapid market growth and expanding demand, we will establish a new plant for ICROS TAPE in Taiwan, which is where demand is highest. We aim to expand our supply capacity by 1.5 times, build a stable supply system, and further expand business.

Semiconductor Market Trends by Application

Semiconductor Market Trends by Application

Source: International Business Strategies (IBS)

ICROS TAPE: Share of the Global Market for Surface Protection Tape

ICROS™ TAPE: Share of the Global Market for Surface Protection Tape

*Based on internal research

イクロステープ™
Value Chain
Value Chain

Addressing individual needs at each stage of the supply chain, the Mitsui Chemicals Group will provide new functional value through products and services that address the performance and functional needs of end users.

TOPICS - ZERO by 40: Agriculture Industry Unites to Help Eradicate Malaria by 2040

In 2018, the Mitsui Chemicals Group joined an initiative with the global agrochemical companies BASF, Bayer, Sumitomo Chemical, and Syngenta with the support of the Bill & Melinda Gates Foundation and the Innovative Vector Control Consortium. The initiative, which was announced at the Commonwealth Heads of Government Meeting, is to support the research, development, and supply of innovative products that will help eradicate malaria by 2040. Using the organic synthesis technologies that we have developed over the years, we will contribute to the eradication of Malaria, an issue covered by one of the SDGs.

ZERO by 40: Agriculture Industry Unites to Help Eradicate Malaria by 2040

TOPICS - Freshness-Retaining Bag SPASH

SPASH is a packaging film that helps preserve freshness by retaining the water generated from the respiration of produce and other foods and keeping the inside of the bag clean thereby inhibiting wilting and decomposition.
The product received the Minister of Agriculture, Forestry and Fisheries Award at the Third Food Industry Mottainai Awards for its contributions to reducing food loss. It can be used with all produce and in a wide range of applications, including as a bag for household use, transportation use, and retail use.

SPASH™

Introduction to Blue Value and Rose Value Products

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

Keep-fresh film

SPASH

  • Respond to the food problem

Inhibit the wilting and discoloration of fruits and vegetables thereby contributing to reduction in the amount of food waste

Rose Value

Insecticide

TREBON

  • Respond to the food problem

Contribute to stable crop production and an increase in food production

Blue Value

Food packaging milky-white film

ECONEIGE

  • Reduce CO2
  • Protect resources

Deliver a white finish by diffusing light on layers of air created inside films.
Reduce the amount of resin used by 20-30% without the need for white printing

Blue ValueRose Value

Sealant film

T.U.X

  • Reduce CO2
  • Protect resources
  • Respond to the food problem

Saves energy by lowering the heat seal temperature and reduces resin usage by improving film strength.
Its excellent sealing performance and impact resistance reduce the amount of food wasted in food production and distribution processes