Chemicals Division

The Chemicals Division conducts a wide variety of trading and businesses, ranging from basic chemicals, such as methanol, to functional materials focusing on plastic resins as well as inorganic chemicals like industrial salts and rare earths. We are also developing businesses in the environmental and life science fields to contribute to building a low-carbon, recycling-oriented society.

Division Strategy

We will realize sustainable growth both by strengthening the trade business to avoid divides in the supply chain and by creating next-generation businesses that align with a low-carbon, environmentally friendly society.

Kenji Maeda

Executive Officer, COO
Chemicals Division

In recent years, we have seen a rise in geopolitical risks and transition towards decarbonization. As a general trading company, it is our mission to provide stable procurement and supply to maintain the supply chain under these circumstances. At the same time, the industry’s paradigm shift presents an excellent opportunity for new business creation. We will remain alert and responsive to changes in the global supply chain, while delivering a stable supply of competitive products. As the Chemicals Division, we aim to execute investments that enhance our functions and strengthen trading for next-generation businesses.

The structure of the chemical industry is undergoing a massive transformation amid the rising social demand for a transition to a decarbonized society. In response to this trend, the Chemicals Division is shifting away from petroleum-derived products to resources produced through biosynthesis and to more eco-friendly products. We will continue to focus on creating clusters of revenue-generating businesses that meet the needs of the next generation, including environmental and green business.

Strengths of the Division

  • Customer base of over 5,000 companies

  • Wide variety of products and materials

  • Ability to make proposals in response to the
    changing business environment

  • Wide variety of products, materials, and business proposal capabilities
    for upstream, midstream, and downstream areas
  • Extensive customer network of over 5,000 companies around the world
  • Top-level business scale and name recognition among general trading companies Operational know-how accumulated through gas chemical business
  • Plastic resin business with a global sales and procurement network
  • Business expertise in the C5* and petroleum resin business value chain
  • Large share and stable supply of Indian-sourced industrial salt in the Asian market

*C5 Fraction produced as a co-product of naphtha cracking that is used as a raw material for synthetic rubber and plastic resin

External Environment

Opportunities

  • Rising global demand for chemicals accompanying economic growth in emerging countries
  • Supply chain changes to be seen after the COVID-19 pandemic
  • Development and production of new materials in response to progress and advancement of eco-friendly needs at the global level

Risks

  • Social pressure directed toward petrochemical products as part of transition to a low-carbon society
  • Pressure on business revenue due to volatile market conditions and fluctuations in foreign exchange rates
  • Supply-related risks accompanying rapid demand fluctuations to be seen during post-COVID-19 pandemic recovery
    (difficulty securing supplies, stressed distribution, etc.)

Global Operations

Business Map

C5 and petroleum resin:Cymetech corporation (U.S.A.)

Industrial salt (India)

Business Overview

■ 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 Corporation, Pla Matels Corporation)

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 next generation 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
(Sojitz SOLVADIS GmbH)

Acquired in 2017, solvadis deutschland gmbh (now Sojitz SOLVADIS 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.

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