SDK Maps Out New Business Plan 'PEGASUS' for 2011-2015
The firm will expand businesses in high-purity gases for semiconductor processing and various functional materials. SDK also aims to quickly commercialize new businesses in SiC epitaxial wafers for power devices.
Showa Denko K.K. (SDK) has prepared a new medium-term consolidated business plan named "PEGASUS" for the 2011-2015 period in which SDK will, as an "evolving chemical company with individualized products," aim to build up strong and diversified businesses on a global scale and establish leading positions on the market.
In response to the drastic changes in the business environment since the latter half of 2008, SDK has been carrying out structural reform under Passion Extension for the 2009-2010 period. As a result of withdrawal from unprofitable operations, drastic cost reductions, and improvement in profitability of base businesses, SDK is achieving V-shaped recovery in performance this year.
Thus, SDK has decided to launch a new consolidated business plan for 2011 and after called PEGASUS. While rapid economic growth in emerging countries is bringing about the rise in living standards, there is increasing need for concerted efforts to control impacts on the global environment. This social trend is producing new market needs. Specifically, demand is growing for compact electronic devices with higher quality, speed, and capacity, which will lead to more convenience and comfort.
Furthermore, new technologies are needed to realize healthy and safe lifestyles through various environmental protection measures, including those against global warming. And the security of energy supply should be achieved through reductions in dependence on fossil fuels and conservation of energy.
To meet these global market requirements, SDK has decided to focus on the two business domains of "Energy/Environment" and "Electronics." It will provide components, materials and solutions in these areas based on its proprietary advanced technologies, thereby contributing to the creation of society in which affluence and sustainability are harmonized.
In the business portfolio SDK aims to enhance businesses in the following three categories: growing base businesses, stable base businesses, and growth/new growth businesses. It will concentrate its managerial resources on globally competitive operations.
The firm will expand businesses in high-purity gases for semiconductor processing and various functional materials. SDK also aims to quickly commercialize new businesses in SiC epitaxial wafers for power devices, and ally derivatives such as heat-resistant transparent films.
In addition to existing managerial resources, SDK will utilize M&A and partnerships, when necessary for promotion of business strategies and R&D, to accelerate the speed of launching new businesses.
Under PEGASUS, the firm will aim to record operating income of JPY 80 billion and free cash flows of JPY 40 billion in 2013.