Strengths of the Division

External Environment

Growth Strategy

The lockdowns and other activity restrictions implemented in response to the COVID-19 pandemic resulted in production halts and reduced production volumes at automobile and other factories. This situation caused declines in demand for resins and other chemical products, driving down selling prices and thus having a heavy impact on the Chemicals Division. Going forward, we will continue to carefully monitor these trends. At the same time, we will turn our attention to the changes in the operating environment, given that demand is expected to spike when conditions begin to recover from the impacts of the pandemic, in order to take advantage of the earnings opportunities and fulfill our supply obligations.

The Chemicals Division has defined three strategies for pursuing long-term earnings leading up to 2030. These strategies are to transition from petrochemicals to biomass-derived chemicals, contribute to the creation of a recycling-oriented society through recycling and other businesses, and cater to demand for health foods and other healthcare products. Guided by these strategies, we are investing in businesses in the life science field to move away from our prior tradeoriented operations in this field, which focused on health foods, pharmaceuticals, and cosmetics materials, and toward solutions-oriented operations, which will involve the development, production, and sale of new materials. In addition, we are utilizing new technologies in the environment field to develop new businesses related to biochemicals and chemical recycling.

Furthermore, Sojitz is investing in start-ups and other companies with promising technologies. For example, we have acquired stakes in Green Earth Institute Co., Ltd., a company that boasts biomass-derived chemical production technologies, and JEPLAN, INC., a company possessing chemical recycling technologies. Through devoted efforts in collaboration with partners boasting superior technological and strategy execution capabilities, the Chemicals Division will help realize a decarbonized society.

Businesses

Business Map

■Environment and Life Science Businesses

In the healthcare field, the Chemicals Division aims to incorporate growth from the domestic and Asian markets as well as from the large U.S. and European markets. To this end, we have begun creating frameworks through M&A activities targeting synergies with existing businesses. Examples of these M&A activities include investments in material manufacturers in the field of foods with function claims offering products boasting benefits for combating lifestyle diseases and dementia as well as investments in manufacturers of hemanalysis systems and research reagents. Through these investments, we plan to develop new businesses that take advantage of testing data. Elsewhere, we are developing functional fertilizers that help address issues related to microplastics through collaboration with fertilizer manufacturers in the agri-product field.

■Plastic Resin Business
(Sojitz Pla-Net/Pla Matels)

The Chemicals Division is developing businesses in three growth fields that contribute to the environment as well as to communities. These fields are food packaging, green plastics and recycling, and nextgeneration automotive components. In the food packaging field, we are supplying items that address changing lifestyles in Europe and the United States while also introducing these items into China and other Asian markets. Meanwhile, the insight and inter-personal networks we have developed in environmental and recycling fields are being utilized to accelerate recycling field initiatives related to green polyethylene, biomass, and marine biodegradable resins. We are also offering one-stop service for resins and electronics manufacturing services in relation to automotive components. Through these various initiatives, we will pursue balanced increases in the value of Sojitz Pla-Net Corporation and Pla Matels Corporation.

■European Chemical Businesses
(solvadis deutschland gmbh)

Acquired in 2017, solvadis deutschland gmbh is a chemical marketing and distribution company with a long history that has helped us maintain a stable flow of transactions for sulfur, sulfuric acid, methanol, and liquid chemicals even amid the COVID-19 pandemic. At this company, we are strengthening and differentiating distribution functions in Europe and bolstering transaction volumes while also taking advantage of Sojitz’s network to engage in joint initiatives with competitive chemical manufacturers in other regions.