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Company Report Kaneka Reveals its Medium-Term Management Plan
The Kaneka Group has drawn up its new medium-term management plan with a special focus on growth strategy, R&B strategy, global strategy and M&A strategy.
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Growth strategy(Performance Targets by Solutions Unit)
• The creation of new social value and transformation of business models based on technological innovation will present major business opportunities.
• The global economy is expected to decelerate due to trade friction between the U.S. and China and geopolitical risk. Against this backdrop, Kaneka has drawn up its new Medium-term Management Plan.
Growth strategy(Transformation of Business Portfolio)
• Aggressively expand business of all four Solutions Units (SU)
• High-functionality products to drive growth in each SU
⇒Aim for major growth in sales of E & I, Pharma, Medical, and Supplement
• Focus on expanding Health Care and Quality of Life
Growth strategy(Transformation of Business Portfolio)
• Leading-edge businesses’ net sales composition ratio to expand from 17→30 % operating income composition ratio from 26→50 %
• Leading-edge businesses + New large-scale businesses to make up 35 % of total net sales
⇒ Driving-force of growth
Leading-edge businesses...E&I, PV, Medical, Pharma, Supplement Foundation businesses (CashCow)...V&C, PP, F&R, PF, F&A New large-scale businesses... Biodegradable polymers, Organic EL Lighting, Opto-Electrochemicals
R&B Strategy
Transition to an R&B structure in order to strengthen capabilities through a shift from R&D to commercialisation
Kaneka’s R&D activities will pursue value from the perspectives of markets and customers by proactively harnessing leading-edge technologies. R&D will be redefined as R&B (Research & Business). The purpose of research will be to conduct activities to solve social issues at the earliest opportunity possible.
R&B Strategy(Investment and Return)
• Aggressively incorporate advanced technologies while strengthening allocation of resources in the life science and electronics fields in pursuit of themes with speed and scale.
• Realise high growth in new product sales.
Global Strategy
• Speedily advance regional growth strategies from a “Glocal” (globaland local) perspective
• Create new businesses centered on the life sciences and electronics fields and promote open innovation through M&A and other means
• A Global Big Niche Company that achieves borderless business expansion
Americas
• Create and expand new businesses in the Health Care field, Nutrition field (Lactic-acid bacteria), and the aerospace field
• Aggressively conduct M&As and open innovations
• Strategically utilise the Kaneka US Innovation Center
• Further strengthen production and sales foundations in existing businesses
Europe
• Expand production capacity in growth fields and conduct M&As (Health Care, Material, QoL)
• Actively expand solutions business into new businesses and fields
Asia
• Maximise returns on large-scale capital expenditure
• Aggressively expand sales in China, ASEAN, and India markets
• Expand business in the Health care and E&I fields
Investment Plan
Europe
Health Care
Expand biopharmaceuticals capacity
Expand bead-method polyolefin foam capacity
Asia
Material
Expand modified silicone polymers capacity
Quality of Life
Expand PI and GS capacity
Build additional optical film facilities
Moulded bead-method polyolefin foam product factory
Expand performance fibers capacity
Health Care
Build additional blood purification system facilities
Expand medical device capacity
Expand API capacity (Japan)
Nutrition
Expand margarine-filling capacity (Indonesia)
Construct new dairy product plant
Americas
Material Aerospace field/Composite production facility
New epoxy masterbatch facility
Nutrition
Healthy foods field/Supplement production facility
To be decided
Material
Mass-production facility for biopolymers
Others
Digital transformation investment
Plan aggressive forward-moving investments such as acquisition of new business commercialisation facilities, in addition to bolstering capacity.
Portfolio of investment plan (Capital investment)
• Emphasise peripheral technologies and peripheral markets in Material and Quality of Life.
• As an additional priority, allocate resources to expand the production base and strengthen the competitiveness of existing businesses.
Portfolio of Investment Plan(M&A)
• Intensively implement M&As in peripheral technologies and markets in peripheral to new areas in Health Care and Nutrition
• Consider a major M&A deal in Medical Devices
(ID:45991331)