TOSOH CORPORATION
4042・Prime Market・Chemicals
Petrochemicals Segment
Olefin and polymer manufacturing business originating from the only naphtha cracker in the Chukyo region
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales (segment total, external + internal) | ¥298,815 million | ¥354,449 million | ↓ |
| Sales to external customers | ¥169,740 million | ¥204,754 million | ↓ |
| Operating income (segment income) | ¥9,716 million | ¥14,280 million | ↓ |
| Segment assets | ¥164,182 million | ¥180,761 million | ↓ |
| Depreciation and amortization | ¥6,427 million | ¥6,513 million | ↓ |
| Increase in property, plant and equipment and intangible assets | ¥6,501 million | ¥12,682 million | ↓ |
Business Details
Using the naphtha cracker at the Yokkaichi Plant as its base, this segment manufactures and sells Ethylene, Propylene and Other Olefin Products, Low-Density and High-Density Polyethylene, resin processed products, and functional polymers (Chloroprene Rubber, EVA resin, etc.). It serves a wide range of demand including automotive, semiconductor, medical, and food applications. In response to intensifying competition from new capacity additions in Asia, particularly China, the segment aims to enhance business continuity by deepening its specialty-oriented strategy and expanding environmentally responsive products. The subsidiary Hokuetsu Kasei Co., Ltd. manufactures and sells polyethylene film and other products.
Recent Overview
Both selling prices and shipment volumes deteriorated, resulting in a sharp 32.0% year-on-year decline in operating income
In the Petrochemicals Segment for FY2026 (ending March 2026), sales to external customers were ¥169,740 million (down ¥35,014 million year on year), and operating income fell sharply to ¥9,716 million (down ¥4,564 million, or 32.0%, year on year). In addition to lower selling prices resulting from the decline in naphtha prices, shipments of Chloroprene Rubber and Cumene decreased, inventory valuation differences worsened, and fixed costs increased. On the other hand, Chloroprene Rubber selling prices rose due to price corrections, and shipments of HDPE resin for semiconductor applications and LDPE resin for laminates remained firm.
Key Products
Growth Drivers
- Continued high utilization through maintaining safe and stable operation of the naphtha cracker at the Yokkaichi Plant
- Expansion of mid- to long-term sales volume through increased Chloroprene Rubber production capacity (commercial operation scheduled to begin spring 2030)
- Strengthening stable supply of HDPE resin for high-purity chemical solution containers essential to semiconductor production
- Enhancing added value through the development and expansion of products addressing environmental challenges, such as mono-material packaging and thin resin film packaging
- Promoting energy efficiency improvements and use of CO2-free fuels to achieve GHG emission reduction targets
- Allocation of focused investment to strengthening the earnings base of chain businesses under the medium-term management plan
Risks
- Risk of raw material costs and selling prices being linked to naphtha price fluctuations
- Risk of intensifying competition and declining overseas market conditions due to new capacity additions and deflationary exports from Asia, particularly China
- Risk of decreased production and shipment volumes due to reduced demand within the combinate
- Risk of a sharp decline in demand for specific applications such as EVA resin for solar cell encapsulant film
- Risk of short-term profit pressure from worsening inventory valuation differences
- Impact on demand and raw material/fuel costs from geopolitical risks such as US tariff policy and deteriorating Middle East conditions
- Risk of delayed recovery in Chloroprene Rubber demand
Last updated: June 24, 2026