Business Overview
In the Petrochemical Business, Maruzen Petrochemical, a Group company, provides a stable supply of petrochemical products as the ethylene center in the petrochemical complex it is part of. We are also expanding our portfolio of high-value-added products and advancing environmental initiatives, further strengthening the business's role in contributing to the realization of a sustainable society.
Business Strategy
Amid a challenging environment marked by global oversupply and declining domestic demand for ethylene, Maruzen Petrochemical is optimizing ethylene production in the Chiba area. The company plans to shut down its in-house ethylene production units by around FY2026 and consolidate production at Keiyo Ethylene, a joint venture with Sumitomo Chemical Co., Ltd. This is expected to improve the operating rate of the ethylene plant, reduce fixed costs, and further strengthen the competitiveness of the basic chemicals business.
In specialty chemicals, we aim to maintain the profitability of our solvents business while expanding our presence in growth sectors such as semiconductors, healthcare, and environmental technologies. Maruzen Petrochemical boasts a leading global market share in semiconductor photoresist polymers and is making ongoing investments to maximize returns in response to growing global demand by strengthening its production system and expanding manufacturing capacity.
In the Petrochemical Business, we view the increase in demand for specialty chemicals, which is associated with the long-term increase of demand for semiconductors, as a business opportunity. With the increase in investments in data centers and demand for electric vehicles (EVs), in addition to products for personal use such as computers and smartphones, there is potential for new decarbonization technologies and products to emerge. In addition, we are strengthening competitiveness by integrating the value chain—from raw material procurement through manufacturing and sales—in collaboration with the Petroleum Business, while optimizing production through data utilization.
Identified Risks
- High volatility in petrochemical product prices
- Supply-demand easing due to new construction and expansion of overseas plants
- Decreased domestic demand and export limitations due to China’s economic slowdown and increased in-country manufacturing
- Sharp rise in raw material prices due to the situations in the Middle East and Ukraine as well as the depreciation of the yen, and growing instability in raw material procurement
Opportunities
- Increasing long-term semiconductor demand due to the growth of the carbon neutrality and digital transformation markets
- Growing global demand for petrochemical products
- Net zero carbon emissions (acceleration of the global move towards decarbonization)
- Further growth in semiconductor demand in line with the widespread use of AI
Strengths
- Maintaining a world-leading market share in semiconductor photoresist*1 polymers
- Possess a diverse lineup of semiconductor photoresist*1 polymers
- The ability to meet customers’ high quality requirements and demands for increased production volume through state-of-the-art semiconductor photoresist*1 polymer manufacturing and analytical technologies, as well as quality assurance
- Located in the Chiba area close to the metropolitan area, with Japan’s largest ethylene production capacity
- Promoting cooperation in oil refining between Cosmo Oil’s Chiba Refinery (Petroleum Business) and the petrochemical complex it is part of
*1 Semiconductor photoresist: Photosensitive material used in photolithography to create fine patterns on semiconductor devices, etc.