16 May 2013 10:37 [Source: ICIS news]
TOKYO (ICIS)--Ube Industries is targeting to grow its operating profit by 84% over three years to more than yen (Y) 55bn ($537m) by end-March 2016, the Japanese chemical producer said on Thursday.
The company expects its capital expenditures to total Y140bn over the three-year period, and will prioritize investments in strategic growth businesses such as nylon resins, caprolactam and synthetic rubber businesses, Ube said in a statement.
Under its new management plan, Ube Industries intends to reposition its caprolactam business as a cost-competitive business that supplies a stable source of nylon feedstocks to its customers, the company said.
Towards this end, Ube will terminate caprolactam production at its Sakai factory by the end of March 2014, and will comprehensively restructure costs at the remaining plants including supply chains for feedstock procurement, the producer said.
For the nylon business, the company plans to create added value and expand the business, Ube said.
Ube Industries has plans to increase the ratio of specialty products in its synthetic rubber business to meet steadily growing demand while pursuing further overseas expansion projects following the establishment of the joint venture in Malaysia, Ube added.
By end-March 2012, the company expects an operating profit of Y80bn, it said.
($1 = Y102.34)
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