CHISSO CORPORATION (E00753) Stock Price

Chisso is a holding company and comprehensive chemical manufacturer centered on JNC Corporation, its core operating subsidiary. The company handles a wide range of products from basic chemicals to advanced materials. The Chisso Group comprises 47 subsidiaries and 20 affiliated companies, operating diverse businesses including high-performance materials such as liquid crystal and organic EL materials, coated fertilizers, composite fibers, chemicals, and renewable energy.

The company's revenue structure is organized into seven major business segments. The High-Performance Materials segment manufactures liquid crystal-related materials and organic EL materials, primarily supplying electronic equipment manufacturers. The Agri & Life Innovation segment manufactures and sells coated fertilizers and advanced compound fertilizers for agriculture, as well as industrial composite fibers, serving agricultural corporations and fiber processors as primary customers.

In detail, the Chemical Materials segment manufactures basic chemicals including specialty alcohols, plasticizers, and polypropylene. The Trading segment handles sales of various chemical industry products. The Green Energy segment operates hydroelectric and solar power generation businesses, while the Engineering segment provides design and construction services for chemical industry equipment. This business structure covers the entire value chain of the chemical industry.

Chisso has formulated a new medium-term plan titled "Performance Improvement Plan" covering fiscal years 2023 through 2027, aiming to stabilize and expand earnings through concentrated investment in growth businesses and strengthened governance. The company classifies its business portfolio into four categories based on growth potential and profitability—strategic expansion, priority development, core, and restructuring—and seeks to achieve sustainable growth by allocating limited capital efficiently. In particular, fertilizers, silicon, and life chemicals are positioned as strategic expansion businesses, with efforts to strengthen operational capacity and expand market share through enhanced competitiveness.

In priority investment areas, the company is advancing selective focus on promising markets by designating its organic chemicals business as a priority development segment. In fiscal 2024, Chisso is expanding production capacity for "Cellufine," a liquid chromatography resin used in manufacturing processes for antibody therapeutics and other biopharmaceuticals, strengthening its entry into the biopharmaceutical market. Simultaneously, the company is expanding production capacity for "Silaplane," a high-performance material used in thermal management and contact lenses, to differentiate itself in electronics and optical applications. Through this shift toward high-value-added products, the company is building its next revenue foundation.

Regarding new market development, under its vision of being "an advanced chemical company contributing to social progress through superior technology," Chisso is expanding its product portfolio in essential areas for the information age, including liquid crystal materials. Conversely, the company is implementing large-scale structural reforms for its unprofitable nonwoven fabric business, divesting its Chinese nonwoven manufacturing subsidiary in fiscal 2024 and halting domestic manufacturing operations to reduce fixed costs. Through optimization of production systems, the company aims to achieve profitability at the earliest opportunity.

On the governance front, Chisso has clarified numerical targets and timelines for profitability strategies in loss-making businesses and strengthened process management. By establishing predetermined contingency measures, including strategy reviews and potential divestment, the company has built a framework for early improvement of unprofitable operations. Additionally, the company has strengthened profit-and-loss and cash flow monitoring across all businesses, establishing mechanisms to simultaneously secure stable operating profit each period and ensure funding for further growth. Leveraging its extensive technological expertise as a pioneer in the chemical industry, Chisso is committed to achieving sustainable growth through developing products that lead the times.