Edited from: “To Our Stockholders” annual report 2009
In 2010, Toray will focus on core technologies; synthetic organic chemistry, polymer chemistry, nanotechnology, and biotechnology to globally expand a variety of businesses, namely, “foundation businesses” (Fibres and Textiles and Plastics and Chemicals), “strategically expanding businesses” (IT-related Products and Carbon Fibre Composite Materials) and “strategically developing businesses” (including pharmaceuticals, medical products and water treatment).
Toray is aiming to become a “global top company of advanced materials” and to this end it has adopted an innovative approach in offering solutions to problems that have emerged amid changes to the “socioeconomic” structure.
“These problems, which have a restraining effect on economic growth, include preservation of global environment, depletion of fossil resources and energy, and aging population with declining birth rates,” says president, chief executive officer and chief operating officer, Sadayuki Sakakibara.
“We will promote growth strategies and work continuously to further improve the value of Toray, while realising our corporate philosophy of contributing to society through the creation of new value with innovative ideas, technologies and products,” continues Sakakibara.
However, with the global economy in a deep recession, the demand for various products including basic materials is said to have fallen significantly, magnified by inventory de-stocking processes across supply chains. Toray states that it has been severely affected by the global recession, which has forced the company to reduce production in a number of its businesses.
“The urgent priority of the company is the implementation of emergency measures to overcome the drastic changes of the business environment. Therefore, over the next two years, Toray will focus its efforts on surviving the economic crisis,” says Sakakibara.
As a basic strategy to guide the efforts, the company has established a new medium term management programme “Project IT-II (Innovation TORAY II)” launched in April 2009.
Under “IT-II” every aspect of its operations will be open to bold and rapid development of initiatives to improve earnings, which are total cost reduction including a cut in the annual remuneration and elimination of bonuses for executives of the company, maximisation of earnings by ensuring sales through every possible effort, optimisation of the scale and systems of the businesses in response to structural changes in the business environment, in-depth reduction of capital expenditures and working capital, and promotion of business structure reform to prepare for future growth.
To address these challenges, Toray will promote three group-wide projects: “Total Cost Reduction Project”, “Action Programme for Survival Project” and “Action Programme for Growth Project”.
Through these projects, the company will implement comprehensive measures to bolster earnings as well as promote a growth strategy from the viewpoint of providing solutions for the constraining factors on economic growth in response to socioeconomic structural changes relating to environmental issues, natural resources and energy, and aging population with declining birth rate.
“We recognise this crisis as one of the severest challenges in the history of the company, but at the same time, we perceive it to be as an opportunity for growth. Through our concerted efforts, we will overcome the current economic crisis and carve out a new future to achieve sustainable growth as a highly profitable business group,” concludes Sakakibara.
ICIS Chemical Business magazine has unveiled the ICIS Top 100 Chemical Companies, with rankings based on 2008 sales.
A PDF of the ICIS Top 100 Chemical Companies is available for download on ICIS connect.
See the article and analysis of the ICIS Top 100 on ICIS news.
Financial highlights: Toray, year ended 31 March
| | 2009 | 2008 | 2007 | 2006 |
| Sales (Yen m) | 1,471,561 | 1,679,670 | 1,546,461 | 1,427,488 |
| Operating Profit (Yen m) | 36,006 | 103,429 | 102,423 | 93,043 |
| Net Profit (Yen m) | -16,326 | 48,069 | 58,577 | 47,409 |
| Total Assets (Yen m) | 1,523,603 | 1,698,226 | 1,674,447 | 1,537,422 |
| Diluted earnings per share (Yen) | -11.66 | 34.34 | 41.84 | 33.72 |
| Number of Employees | -- | 38,565 | 36,553 | 34,670 |
Currency Converter by
OANDA.com, The Currency Site.
Toray Industries
Company Structure
Toray Industries is a major manufacturer of synthetic fibres and textiles. The group's businesses include: fibres and textiles; plastics and chemicals; IT-related products; carbon fibre composite materials; environment and engineering; life sciences and other products. The company was founded in 1926.
More about Toray Industries Structure
News:
Get news on Toray Industries plus the latest chemical news, information, data, market movements and analysis
in one place with ICIS news
Search:
Find details on other chemical companies and suppliers with
ICIS search
Newsletters:
ICIS offers a range of FREE e-newsletters to ensure that you don't miss out on the latest development and key market intelligence in your industry. If you want the latest news sent to your inbox, sign up for ICIS e-newsletters today.
Plants and projects:
Find out more about current and planned chemical plants and projects by subscribing to our comprehensive database