Mitsui Chemicals

Basic Materials Business Sector

By leveraging our strengths in the entire chain from raw materials through to derivative products and tapping into value-added fields, we aim to secure stable earnings and build a framework that serves as a foundational business and supports the Group as a whole.

Basic Information

Mission of the Basic Materials domain

Starting with petrochemicals and basic chemicals, we provide materials in a wide range of fields in this business, such as automotive, housing, consumer electronics, infrastructure, and food packaging. We aim to forge a presence in Asia, secure stable earnings, and build a foundational business by providing distinctive technologies, expanding our lineup of value-added products, and further strengthening our cost competitiveness.

Business vision

We have been improving our earnings structure by steadily implementing business restructuring through fiscal 2019. The global economy has seen a major slowdown recently as a result of COVID-19, and this led to the booking of a large inventory valuation loss to reflect the steep decline in the prices of crude oil and naphtha, our key raw materials. Despite the uncertainty and volatility in the environment surrounding this business, we are striving to further deepen its operations and explore opportunities by continuing to implement thorough cost reduction, expand our differentiated products, and maintain our high operating rate by sticking to our local production for local consumption approach. In doing so, we aim to build a stable earnings base that is resistant to changes in market prices and the supply-demand balance.

Market analysis and strategies

Opportunities and risks

  • Shift to the high-performance packaging domain/market
  • Developments in digital technology and biotechnology
  • Influx of US shale and polyolefins
  • Economic slowdown and volatility owing to US-China trade friction and the pandemic
  • Crude oil and bulk and commodity product price volatility in Asia
  • Influx of imported products and worsening export terms of trade due to the strong yen
  • Shrinking domestic demand and slowing economic growth in China
  • Growing need to address environmental issues

Strengths

  • Globally competitive naphtha crackers
  • Metallocene and other polyolefin catalytic technologies
  • Distinctive differentiated products and derivatives
  • Global expansion of polyurethane system house business based on high-performance polyols

Basic strategies

  • Strengthen businesses that serve as the foundation of the Mitsui Chemicals Group and maintain and expand their earnings
  • Expand distinctive high value-added derivative and niche products and enhance their profitability
  • Complete business restructuring, further strengthen cost competitiveness, and reduce volatility
  • Actively address environmental issues such as marine plastics and plastics recycling

Specific strategies

Petrochemical feedstocks & licensing

  • Further strengthen competitiveness of crackers and expand catalyst and licensing businesses
  • Further deepen petrochemicals business, including production balance and distribution

Basic chemicals

  • Secure stable earnings through implementation of thorough cost reductions, promotion of local production for local consumption, and reinforcement of derivatives
  • Actively adopt AI, IoT, and other sophisticated production technologies

Polyolefins

  • Expand value-added fields using polyolefin catalytic technologies
  • Build long-term relationships of trust with customers in Japan
  • Enhance cooperation with the Mobility domain

Polyurethanes

  • Continue global expansion leveraging advanced formulation design technology utilizing high-performance materials
  • Expand eco-friendly products such as biomass-based polyurethane
Fiscal 2019 Business overview & Target

Main Products

Petrochemicals

Ethylene, Propylene, High density polyethylene, Metallocene linear low density polyethylene (EVOLUE™), Linear low density polyethylene, Polypropylene, Olefin polymerization catalysts

Basic Chemicals

Phenol, Bisphenol A, Acetone, Isopropyl alcohol, Methyl isobutyl ketone, Purified terephthalic acid, PET resin, Ethylene oxide, Ethylene glycol, Hydroquinone, Meta/Para-cresol, Ammonia, Urea, Melamine, Semiconductor gas

Departments and Products

Phenols Division
Product List
PTA & PET Division
Product List
Industrial Chemicals Division
Product List
Petrochemical Feedstocks Division
Product List
Licensing Division
Product List
Polyurethanes Division
Product List
Prime Polymer Co., Ltd.
Product List

Blue Value™ and Rose Value™ products in the Basic Materials domain

Blue Value Environmental contribution value
Details Rose Value QOL improvement value
Details
Blue Value

Exhaust gas reduction agent

AdBlue™ *

  • Reduces CO2
  • Coexists with nature

Reduces NOx emissions.
Contributes to fuel efficiency.

*AdBlue™ is a trademark of the VDA (Verband der Automobilindustrie).

Blue Value

Seat cushion material

ECONYKOL™

  • Reduces CO2
  • Conserves resources

Reduces fossil resource consumption with use of bio-based raw materials.

Blue ValueRose Value

Seat cushion materials

Nextyol™

  • Reduces CO2
  • Coexists with nature
  • Enriches life and society
  • Extends healthy life-span

Improved automotive fuel economy delivered from lighter weight and drastic reduction in VOCs and odor contribute to mitigating climate change and to creating a comfortable living environment.