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New Midterm Management Plan "SHINKA!-Advance 2016" of the Sekisui Chemical Group
Apr 28, 2014



◆Concentrating management resources on 8 growth businesses: "Growing 8"


◆Opening new markets and new fields through "Co-Creation"


◆Rollout of overseas businesses to be accelerated by localization of "prominence"


◆Total investment: 180 billion yen. Of which, 100 billion yen will be allocated to strategic investment


◆Target operating profits: 100 billion yen, and target net sales 1,250 billion yen (FY2016 consolidated base)


Sekisui Chemical Co., Ltd. (President: Naofumi Negishi) has determined its midterm management plan "SHINKA!-Advance 2016" for FY2014 to FY2016 (i.e., April 2014 to March 2017) for all companies in the Sekisui Chemical Group.


I. About the New Midterm Management Plan "SHINKA!-Advance 2016"

1. Positioning of the New Midterm Management Plan

The Sekisui Chemical Group planned to evolve, deepen, and renew its business using the keyword "SHINKA" in the previous midterm management plan "GS21-SHINKA!".

To maintain a strong corporate presence for the next 100 years, the new midterm management plan aims to continue and to evolve SHINKA using the name "SHINKA!-Advance 2016".

In the 2020s, we would like to double our current net sales and profits based around the twin concepts of the "creation of housing/social infrastructure" and "chemical solutions" as cited in our group vision.The new midterm management plan as determined on this occasion is positioned as the first step in an involvement that focuses on this lengthy period.


2. Overall Summary

1) Basic Strategy

The basic strategy is involvement in "three business models, SHINKA" and "CSR SHINKA" to achieve sustainable growth in the face of changes to the external environment.

(1) "Three business models, SHINKA": Keywords are "change", "Co-Creation", and "localization of prominence"

To continually change the business model, focus on the long term, and be involved in new innovations.


◆Core business SHINKA

Change of business models of existing businesses


◆Frontier SHINKA

Deepening cooperation between inside and outside the company, and opening new markets and new fields, through "Co-Creation"



◆Global SHINKA

localization of prominent business models (Accelerate adoption to local society in overseas rollout)



"CSR SHINKA" aims to invigorate the personnel and organizations that support the three business models, SHINKA, and to evolve CSR management.


 2) Objectives (FY2016 consolidated base)



FY2016 Target

FY2013 Results

(1) Operating profits

100 billion yen

82.5 billion yen

(2) Net sales

1,250 billion yen

1,110.8 billion yen

(3) ROE

10.0% min.



3. Basic Strategy and a New Business Framework

 1) Overall Image

Following the promotion of three business models, SHINKA, we plan for sustainable growth across the entire Sekisui Chemical Group by advancing suitable involvement commensurate with the extent of growth in each business.

In particular, we would like to bootstrap growth across the entire group by actively investing management resources in the eight "Growing 8" growth businesses, and in the nurturing and creation of business through "Co-Creation". 

 Individual businesses in each business area are classified using three growth stages: "core", "growth", and "nurturing and creation" 

Overall Image


2) Business Portfolio

To clarify the businesses on which to concentrate our efforts, and to set the eight "Growing 8" growth businesses.

To forge a "nurturing and creating" business that will carry the next generation through "Co-Creation" between the Divisional Companies and with other companies, etc.

Business Portfolio


3) "Growing 8 (G8)"

The details of the G8 businesses are as described below. The aim is for net G8 sales of 430 billion yen by the final year of the new midterm management plan (FY2016).

Growing 8

(1) Renovation for SEKISUI HEIM Owners

(2) Housing Assets Management

(3) Living/Social Infrastructure stocks

(4) Overseas Water- Infrastructure

Renovation/remodeling and maintenance for SEKISUI HEIM owners

Real estate business including leased assets management, mediation, etc.

Management of public and private infrastructure

Pipeline rehabilitation in developed countries and new construction of water infrastructure in emerging countries

(5) Functional Infrastructure Materials

(6) Materials for a comfortable ride

(7) Materials for mobile devices

(8) Diagnostic systems

Resin material for heat-resistant piping material, heat-resistant material, etc.

Materials contributing to improvement of cabin inside environment of vehicles, etc.

Materials for mobile terminals

Test drugs, apparatus, and equipment of clinical laboratory tests


4) Global Development

We plan not only to further reinforce and expand the core businesses (interlayer films, foam, etc.), which businesses are being developed globally through product "prominence", but also to accelerate rollout through "localization of prominence" centering on the following five growing business models that need to be applied to local societies to expand.

In this way, we are aiming for net overseas sales of 330 billion yen in the final year of the new midterm management plan (FY2016).

5 Businesses Planning to Accelerate Application to Local Society (Localization of Prominence)



(1) Thai housing


Increased distribution route by adopting local specifications and cooperation with local developers

(2) Asian water-infrastructure

Package order reception model rolled out locally.

(3) Pipeline rehabilitation

Reinforced rollout in each area : EU, USA, Asia

(4) Diagnostic systems

Accelerating rollout of Diagnostic reagents and devices

(5) Functional infrastructure materials

Construction of supply system to respond to Asian demand for chlorinated polyvinyl chloride (CPVC), etc.


4. Investment Ideas in the New Midterm Management Plan

The idea is to appropriate 180 billion yen from the cash acquired during the new midterm management plan for investment, 100 billion yen of which will be distributed to strategic investments for "Growing 8" and Co-Creation themes, etc. In addition, we will also discuss implementing stable shareholder returns.


5. Business Objectives (Breakdown of Net Sales and Operating Profits by Company)

(Unit: 100 million yen)





Net Sales








Urban Infrastructure and Environmental   Products




High Performance Plastics








Operating Profits








Urban Infrastructure and Environmental   Products




High Performance Plastics










II. Further Strengthening CSR Management

Upon planning sustainable growth for the Sekisui Chemical Group, we plan to strengthen CSR management, which is the basis of growth.

Consequently, we first redefined the "3S Principle" company creed and the group principle, which are the starting point for being "true Sekisui Chemical", and then we determined "CSR SHINKA" as the basic strategy of the new midterm management plan.


1. New Group Principle and "3S Principle"

[Group Principle]

Group Principle

[3S Principle]

3S Principle


2. Basic Strategy of the New Midterm Management Plan: "CSR SHINKA"

To be involved in all types of policies centering on the group, global, and communications.



Further permeation of CSR management into the entire Sekisui Chemical Group



Share values to solve issues globally



Improving corporate value through expanding dialogue with stakeholders



■Determining the Sekisui Chemical Group Slogan

On this occasion, the group slogan was determined as described below alongside the establishment
of the new midterm management plan.

New corporate Group Slogan[A new frontier, a new lifestyle]

Based on this slogan, we will continue to open the frontiers of the "creation of housing/social infrastructure" and "chemical solutions", and thus contribute to improving living standards for people around the world, and the global environment.


Press Contact

Corporate Communication Department, Public Relations Group
Fax: +81-(0)3-5521-0510


This press release may contain forward-looking statements. Such forward-looking statements are based on current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements due to changes in global economic, business, competitive market and regulatory factors.
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