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Aggressive New Mid-term Business Plan Unveiled
Financial Forecasts Updated For Fiscal 2004, 2006 and 2008
Tokyo, Japan - January 17, 2005
Leading diversified chemical products manufacturer, Kureha Chemical
Industry Co., Ltd ("Kureha"), announced sweeping changes,
including the creation of a new corporate identity; a change of name;
and the launch of an aggressive mid-term business plan. These new
initiatives are aimed at revitalizing the business and repositioning
the company as a leading specialty products company. The three pillars
of the new-look Kureha are as follows: |
| 1. |
New Corporate Identity
To mark the celebration of its sixtieth anniversary, Kureha unveiled
a new corporate identity that is in line with its strategy to pursue
continued success and growth in the 21st century. Kureha's Corporate
Identity Committee, chaired by the General Manager of the Corporate
Strategies Division, formulated the new corporate identity through
a nine-month investigation process that included input from all Kureha
employees. The three key aspects of the company's new corporate identity
- its mission, its corporate philosophy and its employee code of conduct
- are outlined below:
(1) Mission
♦ The
pursuit of excellence
(2) Corporate philosophy
♦ We treasure people and the natural environment
♦
We constantly evolve through innovation
♦ We contribute
to society by developing beneficial products
(3) Employee
code of conduct
We always act as global corporate citizens, recognizing our corporate
social responsibilities.
| ♦ |
In relation to our clients: Customer satisfaction
is our prime priority |
| ♦ |
In relation to our work: We will always pursue
progress and innovation. We will maintain a global perspective
as we respond to change. |
| ♦ |
In relation to our colleagues: Mutual respect and
teamwork will always be fundamental to sound employee relationships |
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| 2. |
New Company Name
Reflecting the new corporate identity, Kureha will change its name
from Kureha Chemical Industry Co., Ltd., to Kureha Corporation on
October 1, 2005, subject to approval at the June 2005 Annual Shareholder
Meeting.
The new name, Kureha Corporation, illustrates the company's commitment
to its new mission - "The pursuit of excellence."
It also reflects the company's determination to pursue sustained growth
by expanding beyond the chemical industry and creating a new Kureha
brand. |
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| 3. |
Aggressive New Business Plan
Kureha adopted a mid-term business plan from fiscal 2001 until now,
that shifted the company's focus from manufacturing commodity chemicals
to becoming a specialty products business. The plan introduced a process
of selecting and concentrating on key growth businesses. On this basis,
Kureha transferred its modifier operations to its joint venture partner
and withdrew from its PVC business.
Building on the successes of this early mid-term plan, Kureha unveiled
today a new medium term plan for fiscal 2005 ~ 2008. This new plan
sets the company on a further growth path as a specialty products
company focusing on manufacturing high value-added, highly differentiated
products. Through the plan, Kureha aims to dramatically expand the
company's operations and maximize profitability. Kureha's intention
is to expand its existing businesses while also commercializing new
products that have been developed using the company's in-house R&D
capabilities.
Through its new philosophy, the company aims to motivate employees
to participate in driving Kureha’s development ----- by “Constantly
evolving through innovation”, Kureha will become a leading
global specialty products company.
Kureha President, Hiroshi Tanaka, commented, "Our sixtieth anniversary
is the perfect opportunity to introduce bold new initiatives to reposition
Kureha as a leading global specialty products manufacturer. We are
totally committed to our new mission - 'The pursuit of excellence'
- and we look forward to delivering on this promise."
New Business Plan ----- Financial Forecasts
Kureha has reviewed its financial forecasts in light of this new business
strategy, and has developed new forecasts for the next four years.
These new forecasts illustrate the company's preferred position in
fiscal 2008, and reflect the rapidly changing business environment
in which Kureha operates. The financial forecasts include estimates
for fiscal 2006 that are based on fiscal 2004 projections. Under the
new plan, Kureha will gradually incorporate the 2008 targets into
its plan, after reviewing strategies on an annual basis and taking
into account the changing business environment.
| Selected Consolidated Financial Forecasts |
(Yen billion, except where stated) |
| |
Fiscal 2004 |
Fiscal 2006 |
Fiscal 2008 |
| Sales |
137.0 |
155.0 |
180.0 |
| Operating profit |
10.5 |
14.0 |
20.0 |
| Operating profit margin
(%) |
8 |
9 |
11 |
| Return on equity (ROE)
(%) |
5 |
7 |
10 |
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| Consolidated Financial Forecasts by Business
Segment |
(Yen billion) |
| Division |
|
Fiscal 2004 |
Fiscal 2006 |
Fiscal 2008 |
| Advanced materials |
| |
| Specialty products |
| |
| Plastics |
| |
| Others |
| |
|
| Sales |
| Operating profit |
| Sales |
| Operating profit |
| Sales |
| Operating profit |
| Sales |
| Operating profit |
|
| 26.5 |
| 3.6 |
| 30.7 |
| 3.5 |
| 52.7 |
| 1.6 |
| 27.1 |
| 1.9 |
|
| 32.5 |
| 4.0 |
| 30.5 |
| 4.0 |
| 60.5 |
| 3.5 |
| 31.5 |
| 2.5 |
|
| 40.0 |
| 7.0 |
| 34.0 |
| 4.5 |
| 72.0 |
| 5.5 |
| 34.0 |
| 3.0 |
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| Main Products by Business Segment |
| Segment |
Main areas |
Main Products and Products
Under Development |
Advanced
Materials |
Advanced products,
Carbon products |
PPS resin,
PVDF resin, carbon fiber, bead-shaped activated carbon,
heat-absorbing materials for windows, optical products |
Specialty
Products |
Pharmaceuticals,
Agrochemicals, Inorganic
chemicals, Organic
chemicals |
Fungicides
(Metconazole, Ipconazole) Anti-cancer agent (Krestin),
Chronic renal failure treatment (Kremeszin), Anti-HIV
agent, Anti-pancreas cancer agent |
| Plastics |
Food packaging
materials, Home products,
Synthesized fiber |
Polyvinylidene
chloride resin (Krehalon), High-barrier packaging film
(Besela), Household food wrapping materials (NEW Krewrap),
Fishing lines (Seaguar Series), PGA (polyglicolic-acid
resin) |
| Others |
Environment,
Engineering, Transport,
Storage related |
Industrial
waste processing, medical waste processing, drainage/exhaust
processing systems |
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For further information, please contact:
Kureha Chemical Industry Co., Ltd.
Yoshiki Furuya
furuya@kureha.co.jp
Tel. 03-3249-4651 |
Gavin Anderson & Company
Deborah Hayden or Minako Hattori
dhayden@gajapan.co.jp or mhattori@gajapan.co.jp
Tel. 03-5404-0640 |
Notes to Editors
About Kureha Chemical Industry Co., Ltd.
Kureha Chemical Industry Co., Ltd. is a major diversified manufacturer
of chemical products listed on the Tokyo and Osaka Stock exchanges
(TSE code 4023). The company was established in 1944 as a manufacturer
of caustic soda, chlorine-based chemicals, and fertilizers.
Utilizing its strong in-house R&D technologies, it has since developed
into a leading manufacturer of advanced materials (such as polyphenylene
sulphide (PPS) plastic), specialty products (pharmaceuticals and agrochemicals)
and plastics (food packaging materials and household goods).
The company also undertakes construction and maintenance operations
associated with each of its major businesses, as well as providing
transport, environmental management and other services.
Kureha's range of in-house developed 'household-name" products
includes anti-cancer agent, "Krestin", and food wrapping
film, "Krewrap."
The company's main factory is located in Nishiki, Fukushima Prefecture,
Japan. Kureha's international activities include production facilities
in China and The Netherlands, and the United States. More information
may be found at http://www.kureha.co.jp |
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