Top 50
Home | This Week's Contents  |  C&EN ClassifiedsSearch C&EN Online

 
 
Related Stories
Mitsubishi Tries To Get On Course
[C&EN, Sept. 10, 2001]

Petrochemicals
[C&EN, March 17, 2001]

Related Company
Mitsubishi Chemical
E-mail this article to a friend
Print this article
E-mail the editor
 
 
 
 
 Table of Contents
 C&EN Classifieds
 News of the Week
 Cover Story
 Editor's Page
 Business
 Government & Policy
 Science/Technology
 Concentrates
  Business
  Government & Policy
  Science/Technology
 Education
 ACS News
 Calendars
 Books
 Digital Briefs
 ACS Comments
 Career & Employment
 Special Reports
 Letters
 Newscripts
 Nanotechnology
 What's That Stuff?
 Pharmaceutical Century

 Hot Articles
 Safety  Letters
 Chemcyclopedia

 Back Issues

 How to Subscribe
 Subscription Changes
 About C&EN
 Copyright Permission
 E-mail webmaster
NEWS OF THE WEEK
BUSINESS
October 15, 2001
Volume 79, Number 42
CENEAR 79 42 p. 10
ISSN 0009-2347
[Previous Story] [Next Story]

MITSUBISHI CHEMICAL REEVALUATES
Company reorganizes, seeks partners for petrochemical business

JEAN-FRANÇOIS TREMBLAY

Mitsubishi Chemical will actively attempt to find partners for its petrochemical business under a new restructuring plan.

7937bus1x
Stephanopoulos
The plan was disclosed as the second largest Japanese chemical company said it expects to post a loss of about $75 million for the fiscal year ending March 31, a sharp downward revision from about $150 million of net profit it had estimated in May. The announcements signal the beginning of a corporate restructuring that Chief Technology Officer George Stephanopoulos recently predicted (C&EN, Sept. 10, page 17). But at first glance the plan is far from revolutionary.

There are no immediate layoffs or immediate transformations in the business portfolio. However, Mitsubishi hopes to strengthen the competitiveness of its petrochemical operations in Japan through ventures with unspecified domestic or foreign partners.

Petrochemicals represent 40% of Mitsubishi's sales. The company runs Japan's largest ethylene cracker.

Japanese chemical industry analyst Masami Sawato at HSBC Securities in Tokyo says the company will pursue profitability instead of market share. Warns Sawato: "There is no action plan with a time frame, or an idea of which product they are going to be restructuring or businesses they will consolidate; they won't have such a focus on volume."

Mirroring moves Stephanopoulos implemented in the company's R&D organization, Mitsubishi will reorganize its businesses into three groups: petrochemicals, pharmaceuticals and related businesses, and specialty chemicals and related businesses.

In specialty chemicals, Mitsubishi says it will work much more closely with its customers in the development of new materials and specialty polymers. It will also conduct joint research with foreign academic organizations in areas such as optoelectronic materials and nanotechnology.

To immediately improve profitability, the company will reduce executive pay by up to 20%. It will also reduce capital investment.

[Previous Story] [Next Story]



Top


Chemical & Engineering News
Copyright © 2001 American Chemical Society


Top 50
Home | Table of Contents | News of the Week | Cover Story
Business | Government & Policy | Science/Technology
Chemical & Engineering News
Copyright © 2001 American Chemical Society - All Right Reserved
1155 16th Street NW • Washington DC 20036 • (202) 872-4600 • (800) 227-5558


CASChemPortChemCenterPubs Page