30 May 2013 10:07 [Source: ICIS news]
TOKYO (ICIS)--Japanese chemical producer Mitsui Chemicals is targeting full-year operating profit of yen (Y) 70bn ($0.69bn) in its fiscal year 2015 ending March 2016, the company president Toshikazu Tanaka said at a press conference on Thursday.
The company previously set a target of Y100bn in operating profit for a full year to March 2014 in its ongoing mid-term business plan announced in 2010.
The producer’s basic chemicals segment incurred an operating loss of Y18.9bn in a full year to March 2013, because of the impact of the blast at its Iwakuni-Ohtake Works in Yamaguchi prefecture, Tanaka said in Japanese.
Weak market conditions for purified terephthalic acid (PTA) and phenols also contributed to the loss, Tanaka said, which affected Mitsui Chemicals’ overall performance.
Mitsui Chemicals expects to generate an operating profit of Y28bn in a full year to March 2014, as it recovers from the Iwakuni-Ohtake Works incident, Tanaka said.
“We want to make this year a year of significant leaping forward for growth,” Tanaka said.
While Tanaka did not specify when the company will reach an operating profit of Y100bn, he said: “We can’t make a commitment, but we are hoping [the company is] within two to three years from [achieving the Y70bn target in fiscal year] 2015.”
To achieve its goal, Mitsui Chemicals plans to focus on three core areas – expanding its high-performance products through mergers and acquisitions; accelerating the expansion of value-added polymers overseas; and restructuring its aromatics businesses including the phenol chains, PTA and polyurethane (PU) feedstocks.
“For the phenol chains and PTA, we are already talking to different companies regarding possibilities of alliance[s], but we can’t say when [it may happen] because we will have partner[s],” Tanaka said.
“But at least we want to make a plan within this fiscal year,” he added.
($1 = Y100.66)
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