On November 13, Mitsubishi Chemical Group which had affiliated Nippon Sanso Holdings announced a long-term vision until 2035 aiming to double its core operating income up to 570 billion yen by reinforcing the chemical business and a 5-year mid-term management plan up to FY2030 ending March, keeping the industrial gas business as before.

In the new midterm plan, the group shows a target to double the core operating income up to nearly 570 billion yen in 2030 from the estimated result of the current term amounting to 290 billion yen.

While making efforts to focus on the business items like semiconductor and food storage into which group’s strengths can be leveraged, the group intends to implement a structural reform to accelerate withdrawal and sale of unprofitable businesses and reinforce the profits in the founder’s business of chemicals (chemical business). Looking back at the past three years, the corporate sales revenue has remained flat and the profits stayed stagnant excepting the industrial gas business.

As for the chemical business, the company marked loss in the previous term. Manabu Chikumoto who assumed presidency in April this year has been tidying up the high volatility businesses like steelmaking coke and MMA of the ACH method even in the beginning of this year. In the press conference he said, “There has so far been no observance of investment decision or business management in the structural innovation of business. We proceed solemnly to dispose or withdraw any business which may not meet the three standards of integrity, competitive advantage and growth potential.”

During the previous fiscal term there were 10 cases of business disposal corresponding to a sales revenue of 200 billion yen. For the coming 5 years we are going to dispose or sell out about 30 cases which are estimated to be equivalent to about 400 billion yen in terms of business revenue.

Regarding Mitsubishi Tanabe Pharma of group member which was placed at the strategical key position for the pharmaceutical market in the previous term, it has been disclosed that the company is now exploring to find the best partner putting sale in perspective.

On the other hand, regarding Nippon Sanso Holdings which is engaging in the industrial gas business, he referred, “As we can foresee a stable growth and an expansion of profitability in the business, we have no intention to change the current style.”

In the press conference held at Tokyo Kaikan located at Marunouchi, Tokyo on the day, President Chikumoto and the other representative officers from the group companies attended. However, nobody attended from the top management of Nippon Sanso Holdings. It gave an outstanding impression of independence of Nippon Sanso in the group.