Aiming for sustainable growth, Mitsubishi Gas Chemical Company upholds the management philosophy of “Contributing to the peace and development of society by offering a diverse range of values through chemistry.”
When developing the previous Mid-term Management Plan “MGC Will 2011,” MGC decided that, in order to achieve further sustainable growth despite increasing economic uncertainty, it was necessary to formulate and implement a business plan from a long-term perspective. Accordingly, we formulated what kind of company MGC should aim to become by 2021 (“the desired MGC Group in 2021”). Introduced in April 2012, the new Mid-term Management Plan “MGC Will2014” restates the same Group Vision: “MGC aims to demonstrate CSR in all its activities while developing and growing sustainably on the global stage as a leading chemicals group operating with major presence and a strong platform of proprietary technology.” As such, the new management plan defines itself as the second step of the project aimed at shaping the “desired MGC Group in 2021.”
Unfortunately, we were unable to achieve the numerical targets we had set for MGC Will 2011. This was partly due to unexpected external factors such as the global financial crisis, the sharp appreciation of the yen against other currencies, and the major natural disaster that hit eastern Japan in March 2011. During the period, however, we made aggressive investments, above all, in our core businesses. We are convinced that these investments will result in positive contributions to our future revenue and earnings.
Four basic strategies are defined in the new Three-year Medium-term Management Plan “MGC Will2014” to provide a framework for developing future measures:
MGC has a wide range of products, from basic chemicals such as methanol, to high-performance products such as AGELESS® oxygen absorber. In the methanol business, the company has production sites in Saudi Arabia, Venezuela, and Brunei. With good access to natural gas resources for raw material supply, this production network enables the company to distribute methanol throughout the world. In high-performance products such as electronics chemicals, sheets/films, BT products, and AGELESS® oxygen absorber, the co-creation of value with customers allows us to offer differentiated products with a development platform. This accounts for our tangible presence in all market segments. In these core businesses, we will not only continue to make the most of their existing strengths, but also take an M&A approach to strengthen our business even further.
On the other hand, we have concluded that loss-making businesses require structural reform. Unexpected deterioration in the business environment and increasing competition have surpassed our efforts to make these operations profitable within the existing framework. Although we have already set up structural reform projects in cooperation with the relevant businesses, we will continue to study all possibilities and implement reform plans as soon as they are ready. Where the basic strategy of “accelerating the development of new businesses” is concerned, we have set up the “Next Generation Business Project Group” to reinforce our existing research and development. Integrating internal resources through a cross-organizational approach, the new organization has already started its activity, accelerating overall work in this area. The target areas addressed by the “Next Generation Business Project Group” include medical packing solutions, next-generation battery materials, and new structural materials.
While aiming to achieve the following financial targets on a consolidated basis by the fiscal year ending March 2015 (FY2014), the entire MGC Group will continue to maximize its corporate value:
Net sales 600 billion yen
Operating income 40 billion yen
ROA (ordinary income/total assets) 9.0%
We look forward to your continued support as shareholders and investors.