Trust Recovery Growth Vitalization - Marubeni

Strategy by Business Segment
Chemicals Division
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Taking advantage of strengths in China and other parts of Asia
Due to the breadth of products handled by the Chemicals Division, each member
of the division must act independently and decisively. This aspect of operations
has helped the division to nurture talented personnel who can root out the
mechanisms for conducting business in markets in virtually every corner of the
globe, and comprises one of its strengths. This strength has been instrumental
to the division’s ability to establish a borderless earnings structure. Having
identified China and the whole of Asia as a priority region, we will
take steps to provide manufacturers with our general trading
company functions, such as information gathering and networks,
as well as outstanding human resources, in a drive to
maximize our earnings potential.
Ko Mori
Corporate Senior Vice President, COO
Division Strategies and Strengths
The division focuses mainly on vinyl alkali and basic chemical
products, including olefin and synthetic fiber materials, which
are representative of markets where the division can exert its
strengths and that offer high margins. Centered on advanced
technology fields, the division also focuses on electronic materials
and other markets with strong growth potential.
In basic chemical products, Marubeni ranks as one of the
industry’s top groups in terms of transactions in Asia involving
ethylene and chemical synthetic fiber, boasting top shares of
the markets for polyvinyl chloride (PVC), vinyl chloride monomer
(VCM), and caustic soda. In these fields, where Marubeni
has built considerable competitive advantages, the division
participates in local production projects with prominent Japanese
makers that have formidable technological capabilities,
and through these activities, it has acquired the right to supply
raw materials and sell finished products, thereby expanding
transaction volume, establishing a strong market presence, and
boosting earnings capabilities.
In the field of electronic materials, Marubeni has constructed
an even stronger system for executing transactions by
investing in BOE Technology Group Co., Ltd., a major IT group
in China. To foster a comprehensive alliance with the group,
Marubeni concluded a strategic partnership under a cooperative
agreement that enables it to procure key materials for one
of the group’s core businesses, LCD panels. This agreement
also puts Marubeni in a position to promote the localization of
associated peripheral businesses.
In addition, having positioned China as a key market,
Marubeni is working to expand transactions by establishing a
sales system within China that taps the full capabilities of
Marubeni Information Technology (Shanghai) Co., Ltd., an
electronic materials venture, Marubeni Chemicals (Shanghai)
Co., Ltd., which handles olefins and synthetic fiber materials,
and Marubeni Plax China Ltd., which specializes in the sale of
chemical products, particularly synthetic resin. In PVC resin,
Marubeni has joined forces with Tosoh Corporation, Asia’s
largest maker of electrolysis and VCM, to invest in Changzhou
Honesty Resin Co., Ltd. and Tosoh Guangzhou Chemical Industries,
Inc. Marubeni’s business objective here is trade, and this
investment will help to expand PVC resin and VCM sales
volume in China.