The group said the Japanese market has limited growth potential, and the country’s basic chemical industry has to embrace decarbonization as national energy policy transitions toward carbon neutrality.

Mitsubishi Chemical said Its strategic focus will be on businesses in attractive markets where it is “positioned to win,” such as electronics, healthcare and life sciences.

In the electronics segment, the Japanese player will concentrate on semi-conductor materials and materials for high-speed communication. In food, the focus will be on specialty ingredients, nutrition and materials for long-term storage. In healthcare, Mitsubishi Chemical will focus on vaccines, central nervous system diseases and autoimmune diseases.

The Chiyoda-based group also aims to further increase competitiveness in chemicals, polymers, films and molding materials. In chemicals, it regards itself as the world’s leading supplier of methyl methacrylate, holding about a 40% share of the global market. The company’s polymers business includes bioplastics, ethylene vinyl alcohol copolymer (EVOH) and functional resins, while its molding materials activities comprise carbon fiber composite materials and engineering plastic components for global OEMs, industrial machinery and aircraft manufacturers.

Mitsubishi Chemical said it is also the world’s top manufacturer of optical PET films with a global market share of about 20%, as well as being a top supplier of barrier films, primarily for food packaging and medical products. It also produces industrial film for a wide variety of industrial applications.

The chemical producer is aiming to reduce costs by more than 100 billion Yen by fiscal 2025 through a series of measures that include digitalizing its processes from manufacturing through to sales, reorganizing its business, prioritizing R&D and improving the price structure of low-profit businesses. From Apr. 1, 2022, it will restructure to create a flat organization with a “one company, one team” culture.

Author: Elaine Burridge, Freelance Journalist