Mid-term Management Plan "BRIGHT-2020"

OSAKA SODA GROUP formulated new mid-term management plan “BRIGHT-2020”(FY2018-2020), aiming for profitable growth. When it comes to enhance corporate value, structural business reforms and an embodiment of our strategy, both are necessary toward achieving Group Vision “Be a company growing business expansion of specialty chemicals.”  

Consolidated financial goals in FY2020

       Net Sales 130 billion yen
       Ordinary Income 11 billion yen
       ROE Over 10% 

Basic Policies
 

1. Creating new growth engines

2. Establishing a profitable global business

3. Completing business structural reforms

Medium-Term Management Plan and Business Performance

1. Group Vision

Be a company growing by business expansion of specialty chemicals

  1. Earning power
    Strengthen high-value added specialty chemicals
  2. Growth potential
    Engage in businesses that can compete in markets with a high growth potential
  3. Technology
    Develop original technologies with the frontier spirit
  4. Strategic investments
    Promote strategic investments based on stable financial base
  5. A corporate culture that embraces challenges
    Develop human capital with courage, passion, creativity, and energy

2. Basic Goals

In this management plan, the financial goals to be achieved are JPY130 billion in net sales and JPY11 billion in ordinary income in accordance with basic policy “Creating new growth engines”, “Establishing a profitable global business”, and “Completing business structural reforms”.

(1) Creating new growth engines

  Acrylic Rubber
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Acrylic Rubber

The ratio of new product sales : 20% (FY2020)

 

1) Functional Chemical Products

  • Investing aggressively in ultraviolet curable component and compound business,  both of which are positioned as the next generation growth engines
  • Expanding new business such as of Acrylic Rubber and Non Phthalate Aryl Resin “RADPARsup{TM}” to grow further
  • Collaborating new product development with affiliated companies to create new products in the field of specialty compound such as Synthetic Rubber and heat-resistance & thermoplastic resin
Affinity Gel
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Affinity Gel

2) Pharmaceutical-related Business

  • In Pharmaceutical Purification, developing Polymer Coated Silica Gel in the field of Preparative Silica Gel, and expanding business area mainly in Affinity Gel for Antibody Purification and Column Chromatography
  • In Active Pharmaceutical Ingredients and Intermediates, capturing new demand with special equipment such as Highly Potent Active Pharmaceutical Ingredient and expanding business in the growing field such as Generic Pharmaceutical Products
Carbon Nanotube
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Carbon Nanotube

3) New product development

  • Launching Electric Vehicle & Electric Battery Components in the market, such as Gel Electrolyte and Water-Binder for Lithium-Ion Battery Positive Electrode
  • Building manufacturing technology in Carbon Nano Tube (CNT) which is considered as next generation materials,
  • Establishing a mass production operation, and entering CNT-based products into the market
  • Developing Ultraviolet Curable component comprising Aryl Acrylate compound
  • Developing new products such as CNT-based resin compounds and specialized resin compounds
  • Developing high value added products in Basic Chemical Products

(2) Establishing a profitable global business

The ratio of overseas sales : 30% (FY2020)

  • Executing growth strategy by product to Increase global market share of our product group global niche products, improving technical service, and making best use of resources owned by overseas subsidiary and global business division, which is formed to accelerate global strategy
  • Expanding downstream, starting peripheral business, and investing overseas to establish manufacturing base and to form an alliance for future growth

(3) Completing business structural reforms

Streamlining current business process to increase efficiency, reorganizing and driving profitable growth to improve consolidated earnings,

 

1) Improve productivity through innovation

  • Achieving productivity growth of manufacturing facility through “Internet of Things” and “Artificial Intelligence”
  • Strengthening competitiveness and establishing safety & stable operation
  • Working to strengthen cost competitiveness in Basic Chemical Products, which is our foundation of management, mainly in electrolysis, improving business process, utilizing predictive diagnostic technology, increasing the production yield rate, and saving labor cost
  • Building production process to respond to high mix law volume, improving cost management and reducing inventory & production lead time to build competitiveness strengths and to enhance customer service in Functional Chemical Products
EPICHLOROHYDRYN Plant in MIZUSHIMA area
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EPICHLOROHYDRYN Plant in MIZUSHIMA area

2) Strengthen core business

  • Increasing production capacity of Epichlorohydrin and Caustic Soda to expand Basic Chemical Products at Mizushima facility which is our major Chlor-Alkali plant
  • Optimizing production operations to raise global competitiveness of derivative chemical products

3) Create profitable growth

  • Reviewing business portfolio for the mid-term and long-term to reform cost structure and to shift the business making the best use of our technology and product development capability in the field of building material, life material, and engineering

 

4) Operational reform and organizational reform

  • In order to achieve strategic goals, creating appropriate structure such as creation of a change-flexible organization and executing operational reforms such as investment in management accounting system

 

5) Reinforce the control of affiliated companies

  • Strengthening the management of affiliated companies and overseas subsidiary to enhance value creation