Tosoh Report 2019

 

“We will continue our relentless pursuit of innovations in manufacturing to provide solutions for global markets.”

  • Message from the Group President

    I believe that growth of the Specialty business is the way forward for Tosoh, particularly to sustain growth in profits. As such, the Specialty Group is aiming to expand the scope of its business. We are pursuing heightened differentiation in products and services that show potential for growth and expanding our production capacities for those products, and we are cultivating new business.

    Many of our products contribute to fulfilling the SDGs. Specialty Group products improve health, enhance medical care, heighten safety, and evolve technology. Our R&D, meanwhile, emphasizes the resolution of social issues. To that end, we actively pursue open innovation through industry, academia, and government collaboration, in addition to conducting in-house R&D.

    Over 60% of the Specialty Group sales are derived from overseas markets. We seek to further that proportion by furnishing solutions that precisely meet the needs of customers globally and that help to resolve issues affecting societies in global markets.

    Masayuki Yamada
    President, Specialty Group
    Director, Executive Vice President
    Tosoh Corporation

  • Snapshot

    Organic Chemicals

    Our core organic chemical products are ethyleneamines, bromines, flame retardants, and various eco-business products.

    Bioscience

    We develop and manufacture liquid chromatography-related products and reagents and in vitro diagnostic instruments.

    Advanced Materials

    Tosoh’s development and manufacturing of advanced materials covers an expansive range of products that includes synthetic zeolites, zirconia, and silica glass.

    To learn more about Tosoh's Specialty business group, click here

     

  • Results

    Fiscal Year 2019 Results

    SP-NetSales-02.jpg         SP-OpInc-03.jpg

    Net sales by the Specialty Group increased ¥‎ 10.3 billion in fiscal 2019, or 5.5%, to ¥‎ 197.4 billion (US$1.8 billion). Operating income increased ¥‎ 1.4 billion, or 4.3%, to ¥‎ 35.3 billion (US$318 million).

    Ethyleneamines product shipments decreased in line with a decrease in production volume. Among liquid chromatography-related products, there was a decline in shipments of separation media for liquid chromatography, primarily to Europe. Diagnostic-related products saw shipments of in vitro diagnostic reagents throughout Asia increase.

    Shipments of high-silica zeolites, primarily for automobile exhaust gas catalysts, increased, as did shipments of zirconia for use in decorative applications. Shipments of silica glass for semiconductor manufacturing equipment likewise rose.

  • Forecast

    Specialty Group net sales for fiscal 2020 are projected to reach ¥‎ 212.1 billion, an increase of ¥‎ 14.7 billion over fiscal 2019. The gain is mainly attributable to expected higher sales volumes for silica glass, high-silica zeolites, and bioscience products.

    Operating income is expected to be ¥‎ 35.2 billion, declining slightly from fiscal 2019 despite projected growth in the sales volumes of silica glass, high-silica zeolites, and ethyleneamines. Declines in prices for ethyleneamines and other products are expected to negatively affect earnings, as are fixed costs, including repairs and maintenance expenses, which are projected to rise in the year ahead.

  • Strategy

    Organic Chemicals

    ■ Business Strategy
    Expand and strengthen profit base by increasing production capacity and commercializing new products

    ■ Key Measures

    Amines
    - Stabilize profits by focusing on high-margin ethyleneamines
    - Promote sales by diversifying grades of RZETA®, our low-emission polyurethane catalyst

    Bromine and Bromine-Based Flame Retardants
    - Expand profit base through capacity increases. Tosoh will increase the efficiency of bromine production by renewing and expanding facilities for flame retardants.

    New Products
    Commercialize new conductive polymer materials, aldehyde scavengers, and other products

    Bioscience

    ■ Business Strategy
    - Expand business fields and sales in emerging markets through the integration of Tosoh and external technologies

    ■ Key Measures

    Analyzers
    - Expand product lineup of columns and separation media for biopharmaceuticals

    Diagnostics Systems
    - Develop and market new diagnostic markers
    - Expand sales in China and India

    Liquid Chromatography
    - Increase production capacity for columns and reagents for HPLC-based glycohemoglobin analyzers.

    Advanced Materials

    High-silica Zeolite

    ■ Business Strategy
    - Develop and expand sales of high-performance automotive applications
    - Expand petrochemical and environmental businesses in molded products by cultivating high-end niche demand

    ■ Key Measures
    - Continue to introduce differentiated grades into market
    - Establish new plant, and ensure stable production
    - Expand molded grades for use especially in environmental remediation

    Zirconia

    ■ Business Strategy
    - Maintain majority share in high-end markets by introducing differentiated grades

    ■ Key Measures
    - Offer new functionality and added translucency in dental materials
    - Decorative: Expand decorative applications by ascertaining customer needs

    Silica Glass

    ■ Business Strategy
    - Identify demand trends, and invest further as opportunity appears

    ■ Key Measures
    - Increase production capacity for silica glass materials and fabricated quartzware

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