Showa Denko has drawn up a new 5-year mid-term business plan called Project 2020+, to get underway in 2016. A meeting was held on December 11 to give a general outline of the plan to the press.

The new mid-term plan has “worldwide development of individualized businesses” as its basic strategy. Targeting 2025, the company will expand the ratio of its individualized businesses from the current 30% up to 50%. Along with this it will increase its ratio of overseas sales from 40% to up to 60%. It will strive to hold down the range of fluctuation in earnings.

The existing business groups will be divided into 4 portfolios, each with a mission assigned, Growth-accelerating, Advantage-establishing, Base-shaping, and Rebuilding. Hard disks, its main business, falls under the category of Bas-shaping while the 2 businesses of the extremely fast growing ion lithium batteries and the Power Semiconductor SiC fall under the category of Advantage-establishing.

What deserves to be pointed out especially is that heading the list of Growth-acceleration is high purity gas for use with electronic materials. This is mainly for portable terminals such as smartphones and tablet PCs. This is because the market for this gas is expected to continue to grow very steadily. Applications are continuing to expand. Semiconductors are expected to be miniaturized more and become multi layered. For LCDs there is expansion of production in China, while cars are continuing to be equipped with LEDs. A vibrant demand is anticipated for high purity gas.

CEO and President Ichikawa stated, “Our individualized chemical business draws a clear line with respect to bulk chemicals. It is estimated that the scope of sales of this business should be on the order of JPY20 to JPY50 billion. Sales of high purity gas are currently at JPY30 billion, with this being a classic business.” He went on to declare strongly, “We’re aiming at increasing sales of this business 40% by 2018 (compared to 2015) and by 60% in 2020, becoming a leading company.”

As for the specific policy, by setting ammonia, chlorine, nitrous oxide, and hydrogen bromide as the 4 major high purity gases, the company has come up with 5 non-continuous growths based on
1. The establishment of a global SCM system
2. Strengthen global network
3. Develop and market high-value-added new gases
4. Large capital investment
5. Expansion of business further via “discontinuous” growth through M&A and business alliance

No.2 “Strengthen global network” refers to the fact that the company plans to establish sales offices in North America and to expand sales offices in China (Central China, North China).

Regarding profit, “Regarding our high purity gas business, the ratio of fluorine gas and hydrogen bromide which have high market shares is increasing. This year our ROS (Return on Sales) has come to where it exceeds the level of 10%. For 2018 we’re aiming at over 15%.”