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 Happy New Year to Polyplastics Group Members. I would like to send my best wishes and hope that this year will bring happiness and good health to all of you and your families.
Looking back, last year was a historical year for our company. We expanded our business area to the entire world, and, that is to say, we re-started our business as a truly global company. I think it's no coincidence that we started activities for leaping to the new stage in such a memorable year. The business environment we are surrounded by in this year is still a challenging one; however, we have concrete road map for leading to the future success.
The road map includes expanding the market through the global launch of business, creating and expanding business opportunities with non-Japanese global companies such as Western and Korean, creating the new market through the development of innovative products and technologies, establishing the cost competitive production system, ensuring the support system corresponding to the global business deployment, and establishing the structure that helps us to get the best out of ourselves as a team.
Gathering together the strength of this excellent team called the Polyplastics Group, let's take strong steps for being the World's No.1 Solution Provider that contributes to the society.
I'll show you the corporate objectives for 2013 as below.
Even there is an excellent strategic scenario, we cannot achieve results if there's no passion or ambition of people who push through that. Polyplastics is a company that has been growing by such passions of employees. I firmly believe that this will last in the days ahead.
Corporate Objectives for 2013
<Background of Corporate Objectives for 2013>
2013 is the last year of the Three-Year Mid-Term Business Plan (2011-2013).
According to the Plan, the sales figures target for 2013 is 123.3 billion yen, while the operating profit target is 18.5 billion yen (operating margin at 15%).
However, it seems that it would be hard to achieve these targets due to major changes in external environmental factors, including the global economic slowdown, the historically super strong yen, and the soaring prices of main raw materials and fuels.
Meanwhile, as a result of a settlement with Celanese Corporation, markets for the POM, PBT and PPS business have expanded from Asia to the entire world. Thus, we have just reached a new stage leaping from an Asian company to a truly global company.
Considering 2013 as a preparation period for dramatic jumping in the next mid-term business plan, we aim to strengthen our business base and organizational and human resources foundation.
<Corporate Objectives for 2013>
I. Enhancement of Business Base
1. Ensure stable and safe operation
Ensure safety by thorough reviewing safety management in light of a number of chemical plant explosions occurred in the last several years in Japan
2. Establish a global sales system
| (1) |
Ensure the growth of existing Asian businesses |
| (2) |
Expand business with Japanese customers in North America |
| (3) |
Establish a sales network in the growing Central and South America region |
| (4) |
Establish a business style in the EU |
3. Reviewing and reestablish a growth scenario for each business
(To create new demand and develop business amid sluggish demand growth)
| (1) |
Reestablish a growth scenario to respond to changing conditions for the LCP business (2012 targets will be continued) |
| (2) |
Pursue the possibility of supplying low-cost PBT |
| (3) |
Pursue the possibility of supplying low-cost PPS |
| (4) |
Select materials and markets to be developed to create new demand and concentrate resources on them |
| (5) |
Accelerate the development of growth industry areas |
4. Nurturing and pioneering new business areas
| (1) |
Achieve profitability of the COC business and formulate a strategy to step it up to the next stage (plant capacity/ business system) |
| (2) |
Evaluate the possibility of the commercialization of PEEK |
| (3) |
Strengthen the new business search system |
5. Ensuring the implementation of following investment projects to contribute to business performance
–Construction of MP-2
–Operation at Polyplastics (Nantong) Ltd.
–LCP Leuna Carboxylation Plant GmbH
II. Strengthening Organizational and Human Resources Foundation
1. Building a powerful system to enhance total cost competitiveness
Enhance total cost competitiveness from raw materials procurement to production and logistics
2. Building a support system to deal with global business development
| (1) |
Build an organizational system to deal with global business operations |
| (2) |
Promote the role of Head Office divisions in Japan, which must have global-scale ideas and actions, as a global headquarters. At the same time, strengthen cooperation with Group companies |
| (3) |
Establish an accounting system that will help to speed up the decision-making process including acceleration of financial closing process and analysis of revenues by region |
| (4) |
Strengthen and promote Group human resources management system |
| (5) |
Hire necessary personnel in a proactive manner and give optimum assignments from a short-to medium-term perspective |
3. Nurturing and making good use of persons who have a passion for (persistence in) the challenge (reform) |
