Message from the Senior General Manager
The strength of the Specialty business is determined by the function of the product and the extent of its value to the customer. For this reason, we need to continue to lead in our field and promote the improvement and creation of customer value by developing new technologies ahead of our competitors.
Changes in customer values not only pose a challenge but also present a significant opportunity. To provide products that meet market needs in a timely manner, it is important that we increase our access to technologies and technical knowledge, and that we disseminate this information throughout the company and pass it on accurately to the next generation of employees. This is the decisive factor for the Specialty business.
Nobukatsu Ohmichi
Senior Vice President
President, Specialty Group
Senior General Manager, Advanced Materials Division
SWOT Analysis
Strengths
- High-performance product lineup based on proprietary technologies
- Accumulation and transmission of knowhow and experience gathered through extensive customer support
- Global brand recognition
- Supply stability with multiple production bases
Weaknesses
- Exchange rate fluctuations
Opportunities
- New demand inspired by trend toward carbon neutrality
- Healthcare needs associated with promotion of health investment and realization of a health-promoting society
- Long-term demand for semiconductors
- Growing awareness of circular economy
Threats
- Intensifying business conditions due to rising competition
Review of Previous Medium-term Business Plan
The Advanced Materials Division sought to make timely capital investment to expand business, primarily in growth areas such as high-silica zeolites, zirconia and quartz in order to take advantage of increasing opportunities offered in the semiconductor and healthcare markets and due to environmental regulations. However, unexpected external factors, including the spread of COVID-19, a semiconductor shortage and the Russia-Ukraine conflict, impacted our business performance and we were unable to achieve targets for certain products. Nevertheless, we do not believe that we need to significantly modify the direction of our growth strategy. We will continue to take advantage of opportunities for growth, particularly in an IT-based and increasingly health-conscious society, and focus on creating the technologies required to provide new products for these sectors.
Strategy Under New Medium-term Business Plan
The division will implement three basic strategies to achieve the goals of the new medium-term business plan: A partnership strategy to cultivate customer base, a technology dissemination strategy to create new demand, and a brand strategy to create customer value through unique technology. Following this approach, we will seek to continuously develop and launch differentiated products, propose solutions to customer issues and expand production, particularly for quartz, sputtering targets and ceramics, in a timely manner. During the period of the new medium-term business plan, we will strive to build a robust foundation for the division with the aim of achieving the company-wide business vision for fiscal 2031 of establishing a profit base of ¥100 billion in the Specialty business.