The Petrochemical Group plays a critical role in Tosoh’s dual operational strategy by producing stable-demand, revenue-generating commodity products and more-profitable high-performance specialty products. The group’s primary product lines are polymers, including polyethylene and functional polymer products, and olefins. By managing the procurement of raw materials such as naphtha; by balancing the internal production and external sourcing of ethylene; and by constantly developing differentiated, high-value-added grades of products, the Petrochemical Group supports Tosoh’s efforts to achieve balance between its commodity and specialty goods.
Tosoh’s ability to manufacture hydrocarbon-based products, such as ethylene, propylene, cumene, and aromatic compounds, in an integrated, efficient fashion is due largely to olefin feedstock supplied by the Petrochemical Group. The company also sells the Petrochemical Group’s olefins to external customers, who use them to manufacture products for automotive, construction, and diverse other applications.
Products from the group’s polymer operations include ethylene vinyl acetate (EVA), which can be found in solar cells and shoe soles; low-density polyethylene (LDPE), applications for which include medicine and food packaging; linear low-density polyethylene (LLDPE) for thin-film materials; and high-density polyethylene (HDPE), which is used in injection moldings and high-purity pharmaceutical containers.
Polymer operations also produce functional polymers such as chloroprene rubber (CR), chlorosulfonated polyethylene (CSM) rubber, and polyphenylene sulfide (PPS) resin. CSM—for which Tosoh is the world’s leading supplier—and CR are most commonly used in automotive applications. And PPS resin, a unique, high-performance plastic, is becoming increasingly popular in automotive engineering, as it enables the development of vehicles that are lighter and that therefore offer improved fuel efficiency.
In fiscal 2019, the Petrochemical Group expects negligible effects on the Asian market from an influx of shale-based, foreign-made ethylene derivatives. The group’s diverse lineup of derivatives provides it with valuable flexibility, and its established framework enables it to maintain an ethylene supply balance. A decline in demand for propylene from industrial complex customers is forecast for the medium term, but demand is expected to remain steady throughout fiscal 2019.