SEKISUI CHEMICAL Group's Value Creation

Last updated: Sep. 28, 2021

Our Principles

  • * Five social, environmental, and economic stakeholders: Customers, Shareholders, Employees, Business Partners, Local Communities and Environment

SEKISUI CHEMICAL Group’s Principles comprise the three Corporate Philosophy, Group Vision, and Management Strategy elements. Far from consistently enjoying a favorable tailwind, SEKISUI CHEMICAL Group has overcome a host of challenges since its foundation in 1947 through the underlying strength of its Corporate Philosophy “3S principles,” which were established based on the following intent.

“The difference between people living their lives in accordance with ideals and those simply going where the currents and eddies of life take them becomes ever more apparent as the long years of their lives pass. The same is true of business. Only when employees mass under a common ideal arising from a basic policy of business management can the company demonstrate its great power as a corporate community.”

In order for the Group to achieve sustainable growth in an increasingly uncertain world, it is imperative that every employee take the initiative and independently participate in constantly overcoming each challenge to respond swiftly to changes in the market, and that efforts are made to accelerate preparations for anticipated future megatrends and to steadily implement measures that contribute to solving social issues. Adopting a long-term outlook, we will work to continue generating innovations that contribute to social issues.

Learn more SEKISUI CHEMICAL Company’s Corporate Philosophy, Group Vision, and other elements of our Group Principles.

SEKISUI CHEMICAL Group Accomplishments

SEKISUI CHEMICAL Group was established in 1947 with the aim of comprehensively commercializing plastic, a new and innovative material in Japan at that time.

Guided by our 3S Principles (Service, Speed, Superiority) over the ensuing period, we have dared to challenge new businesses and frontiers while ushering in a new era focusing mainly on plastic-related technologies and products.

1947-: Foundation

Established Process Creation Business as Pioneers in Plastics

SEKISUI CHEMICAL Group took on the challenge of being the first in Japan to engage in plastic processing using domestically produced injection molding machines. We contributed to Japan’s postwar reconstruction by bringing new changes to people’s lives through plastic products such as daily necessities, tapes and films, PVC pipes, and poly-pail plastic garbage bins. In 1960, SEKISUI House Sangyo Co., Ltd. (now SEKISUI House Co., Ltd.,) was spun off as a separate company after we entered the housing field. In 1963, we aggressively expanded operations, which included becoming the first Japanese manufacturer to make a foray into the United States.

1966-: Development

Improved Management Framework and Developed Next-Generation Businesses

With high economic growth in Japan drawing to a close, we improved our management framework based on restructuring and our basic philosophy of respecting employees and business partners while contributing to society through plastics. We began Sekisui Heim industrialized modular houses and the Medical Business as the next wave of growth businesses.
The Company was awarded the Deming Prize, the highest honor for TQC,* in 1979 for company-wide TQC activities.

* TQC: Total Quality Control

1980-: Growth

Launched High Performance Products and Expanded the Housing Business

With commercialization of next-generation products progressing since the late 1970s, we saw growth particularly in the social infrastructure, housing, and medical fields. We implemented organizational reforms to enhance our ability to meet customer needs, while launching new materials, technologies, and products to address more sophisticated user needs and social issues. We expanded after-sales services in the Housing Business, through which strong growth has driven earnings. In 1997, we began selling houses equipped with solar-power generation systems.

1999-: Resurgence

Adopted a Three Company System and Initiated CSR Management

The Company reorganized from a seven-division to a three-company system, engaged in business selection and concentration, and pursued globalization to overcome the business crisis following the collapse of the bubble economy in Japan. At the same time, we promoted CSR management under the “Three Prominences”: “Environment” to achieve sustainable growth by balancing the economy and ecology; “CS & Quality” to improve CS (customer satisfaction) together with enhancing quality; and “Human Resources” to support the growth of employees to maximize their strengths.

2008 onward: Transformation

Proactively Pursuing Strategic Investment and Evolving from CSR to ESG Management

We are improving profitability along with expanding our businesses by pursuing investment strategies that clarify strategic fields and by enhancing our business structure. We have significantly increased sales of high-performance plastics company by expanding our lineups of high-performance products.
In 2020, we formulated our new Long-term Vision. As part of this, we are pursuing the evolution of CSR management—an integral part of our operations—into ESG management in order to realize social and corporate sustainability by taking a more strategic approach to environmental and social issues.

Performance Changes by Segment And Global Expansion

Value Creation Process

Commentary: SEKISUI CHEMICAL Group’s Value Creation Process

SEKISUI CHEMICAL Group maintains BtoC businesses primarily in the new housing construction industry and BtoB businesses that handle conductive fine particles, interlayer films for automotive laminated glass, and other materials in advanced fields, sewage pipes, and diagnostic reagents. Similarly, we carry out business through the three “High Performance Plastics,” “Housing,” and “Urban Infrastructure & Environmental Products” divisional companies as well as the Medical Business in the fields of “Residential and Social Infrastructure Creation” and “Chemical Solutions.” Each of the divisional companies and the Medical Business maintains its own development, manufacturing, and sales capabilities, and creates value through the series of steps involved in “Process Creation,” from capturing customer needs to creating products and businesses, as well as through portfolio transformation (adaptability) that tracks changes in the social environment.

The “Three Prominences” and R&D Capabilities that Serve as the Source (Input) of the Group’s Value

Human Resources

In order to ensure that each of our employees can hone and grow their unique skills, we offer a wide-range of “Elective and Recruitment-type Training Programs” through which employees can choose courses to attend from a varied lineup of training and educational options on their own. At the same time, we provide opportunities for employees that aim to put their motivation to undertake various challenges in a self-driven manner to the test in order to encourage the growth of each individual.

CS & Quality

Since 1999, SEKISUI CHEMICAL Group has engaged in CS management that places emphasis on customer satisfaction (CS). We directly reply to each of the more than 10,000 inquiries and opinions received by the Customer Consultation Office each year, and analyze the factors that motivated the customer to make the inquiry in the first place, in order to discover the hidden needs of customers. By drawing out customer opinions and providing continuous feedback to the related business units of each divisional company, these efforts assist in revising product specifications, for example.

Environment

SEKISUI CHEMICAL Group has recognized the environment as an important issue since the 1990s. In addition to ongoing efforts to prevent pollution, every effort has been made to reduce the environmental impact of the Group’s business activities. Since 2003, we have worked diligently to practice “Environment Management” on an increasingly fully fledged basis with the aim of achieving sustainable growth that balanced ecology with the economy. We still to this day strive to build a sustainable business base that includes ties of trust with our stakeholders through various measures including the acquisition of SBT certification and endorsement of TCFD.

R&D Capabilities

SEKISUI CHEMICAL Group recognizes that maintaining a prominence in technology is the bedrock for creating value. Forming the basis of these efforts are the 28 technological platforms with direct links to the Group’s two business domains, “Residential and Social Infrastructure Creation” and “Chemical Solutions.” These are the core technological platforms that support the Group’s product lineup and should even be said to be the source of the competitiveness that has been cultivated over many years.

We do more than just carefully listen to customer feedback to discover the added-value that we can provide through the technological platforms on an individual basis, and instead effectively combine multiple platforms to develop new products and services that are capable of maintaining a clear lead in the market, even in a harsh competitive environment.

ESG Management at SEKISUI CHEMICAL Group

The ef for ts of SEKISUI CHEMICAL Group to contribute to resolving social issues directly connect to the greater sustainability of society, while the net sales gained in exchange for these contributions indicate the degree to which the Group helps resolve social issues. By raising this degree of contribution, the Group can ensure its own profitable sustainable growth and in turn enable the further expansion of its contributions to customers, shareholders, employees, business partners, local communities, the environment, and all other stakeholders.

Conceptual Diagram of ESG Management

We have positioned the statement “Innovation for the Earth” as a central theme, and we will help realize a sustainable society and the Group’s sustainable growth through our prominence, ability to resolve social issues, and efforts to bring peace of mind for the future. Putting this cycle into practice together with our stakeholders is the concept behind our ESG management. Our value creation process is carried out based on this conceptual diagram.

Strengthening the ESG Management Base

Long-term Vision “Vision 2030”

Aiming to Double the Group’s Business by 2030 Centered on ESG Management

“Vision 2030,” the Group’s long-term vision, presents the vision statement of “Innovation for the Earth,” which incorporates the Group’s resolute will to continuously drive innovation as a means of “supporting the basis of LIFE and continuing to create ‘peace of mind for the future’ in order to realize a sustainable society.” This Vision lays down the four business domains of Residential (Housing), Advanced Lifeline (Social Infrastructure), Innovative Mobility (Electric/Mobility), and Life Science (Health and Medical), and aims to double business by 2030 through the expansion of existing business while taking on the challenge of new domains along the strategy axis of “business growth, reform, and creation centered on ESG management.”

Proactive Investment of Management Resources

The expansion of business for which the long-term vision aims can only be achieved through substantial growth rather than the extension of existing businesses. SEKISUI CHEMICAL Group is proactively investing management resources to double the size of business by 2030. When executing new investments, the Group considers financial soundness and steps to increase the probability of return in anticipation of making investments exceeding ¥2 trillion in total value over the 10 years through 2030. Along with aiming to achieve a scale of ¥1 trillion through domestic growth, the Group will accelerate efforts to cultivate frontier businesses without slowing its current pace of growth overseas as part of a plan to expand the scale of overseas business to ¥1 trillion, more than three times that of today.

Domain Growth Image and Targeted Business Structure

In each of the Residential (Housing), Advanced Lifeline (Social Infrastructure), Innovative Mobility (Electric/Mobility), and Life Science (Health and Medical) business domains, the Group will grow sales 1.5 to 3 times to achieve the major target for 2030 of ¥2 trillion in net sales, a doubling of business from today, and transform into an attractive company with diverse growth engines and a strong presence. By taking up the challenge of pursuing innovation as an extension of core technologies in each domain, the Group will create new businesses and the next frontier for the new business domains in anticipation of major paradigm shifts.

The Existing Business Portfolio and Strategies to Achieve the Vision

SEKISUI CHEMICAL Group currently carries out its businesses through the three Housing, Urban Infrastructure & Environmental Products (UIEP), and High Performance Plastics (HPP) divisional companies as well as the Medical business in the four domains shown to the above. The Medical business was spun off as a new company candidate in 2019 in an effort to accelerate the pace of growth in the Life Science field, which was previously included in the High Performance Plastics Company’s activities. Going forward, we will broaden our contributions to resolving social issues through the expansion of existing businesses and the creation of new businesses.

Financial and Non-financial Highlights