Mitsui Chemicals, Inc.
4183・Prime Market・Chemicals
Business
Mitsui Chemicals is a comprehensive chemical group comprising four segments: Life & Healthcare Solutions, Mobility Solutions, ICT Solutions, and Basic & Green Materials. As a consolidated group including 130 subsidiaries and 21 affiliated companies, it supplies a wide range of products worldwide, including Vision Care Materials, Agrochemicals & Environmental Health Chemicals, dental materials, elastomers, semiconductor materials, and petrochemical basic chemicals. Overseas sales account for 51.8% of revenue, and the company has built a global production and sales network. Under its long-term management plan "VISION 2030," it is promoting a transition from a materials-supply-oriented business model to a solutions-oriented one.
Business Model
A two-layer structure in which the core petrochemical and basic chemicals business manufactures raw materials and intermediates, while high-value-added functional materials and specialty chemicals are developed across three growth areas (Life & Healthcare, Mobility, and ICT). In the growth areas, differentiation is achieved through solution proposals and joint development starting from solving customer challenges, capturing value-added earnings that go beyond mere materials sales. The company invests ¥46.4 billion annually in R&D, positioning technological capability as the source of its competitive advantage.
Company Strengths
The company holds a consistent product lineup ranging from the plastic eyeglass lens material MR™ to photochromic materials, coating materials, and lens processing equipment, maintaining a leading global market share. It has strengthened the R&D and manufacturing functions of SDC Technologies, Inc. (through headquarters relocation), continuously expanding its global brand strength and supply capacity.
The company holds advanced products such as Icross Tape™, Mitsui Pellicle™, and Diffrar® (the world's first optical resin wafer for AR glasses with refractive indices of 1.67/1.74 in a 12-inch size). By adding evaluation and prototyping functions at the Nagoya Plant's "Creating Integration Lab.®" and the Taiwan plant, it has built a local development structure that responds to customer speed requirements.
The company has reached agreements with Asahi Kasei and Mitsubishi Chemical (Western Japan) and Idemitsu Kosan (Chiba) to shut down their ethylene facilities and consolidate production into the company's own facilities. It is also leading industry restructuring by integrating Sumitomo Chemical's PP and LLDPE businesses into Prime Polymer (planned for July 2026), achieving scale expansion and fixed-cost efficiency in the polyolefin business.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥1,879,547 million in FY2023 (ended March 2023) and has declined for three consecutive periods, reaching ¥1,668,754 million in FY2026 (ending March 2026). The main external factors were falling selling prices due to lower raw material costs such as naphtha, and declining sales volume in the Basic Materials business. Meanwhile, core operating profit remained nearly flat at ¥100,028 million (down 0.9% year on year). The ICT segment posted a profit increase of ¥10.2 billion year on year on the back of a recovery in semiconductor market demand, which offset the impact of US tariffs and an aluminum plant fire in Mobility, as well as worsening inventory valuation losses in Basic Materials. Profit attributable to owners of parent increased for the first time in two periods, to ¥34,378 million. Operating cash flow remained at a high level of ¥212,988 million, and free cash flow improved significantly from ¥35.5 billion in the previous period to ¥78.2 billion.
Growth Strategy
Concentrated investment in the three growth areas under VISION 2030, alongside inter-company collaboration and restructuring of the Basic Materials business
Accelerating peripheral-domain proposals by adding evaluation and prototyping functions to the Taiwan plant for Icros Tape™ and leveraging the Nagoya "Creating Integration Lab.®". Successfully achieved the world's first development of Diffrar®, an optical resin wafer for AR glasses (12-inch, refractive index 1.67/1.74), and is pursuing expansion into the growing AR/VR market. Core operating income forecast for FY2027 (ending March 2027) is ¥41,000 million (+¥4,104 million year on year).
The tender offer for DNA Chip Research Inc. was completed, making it a wholly owned subsidiary. The company is incorporating genetic diagnostic services (diagnostics business) and contract experimental analysis services for universities and research institutions (contract business), cultivating them as an earnings pillar in the Medical domain alongside Life Care and Wellness. In parallel, research & development and manufacturing functions are being substantially strengthened through the relocation of SDC Technologies, Inc.'s headquarters. Segment revenue forecast for FY2027 (ending March 2027) is ¥270,000 million (+¥10,924 million year on year).
Entered into a definitive agreement to integrate Sumitomo Chemical Co., Ltd.'s domestic PP business and LLDPE business into Prime Polymer Co., Ltd., a joint venture between Idemitsu Kosan Co., Ltd. and Mitsui Chemicals. Aims to improve profitability in the Basic Materials business through scale expansion and enhanced competitiveness. Preparations are underway toward the business integration in July 2026.
In the Western Japan region, facilities of Asahi Kasei Corporation and Mitsubishi Chemical Corporation are to be shut down around FY2030, with production consolidated into Mitsui Chemicals' facilities. In the Chiba region, an agreement has been reached to shut down Idemitsu Kosan Co., Ltd.'s facility in July 2027 (after periodic maintenance) and consolidate production. This advances structural cost reduction in the Basic Materials business amid continued slowing downstream product demand and low utilization rates.
Resolved to acquire ¥30.0 billion of treasury shares with the aim of improving capital efficiency. Combined with dividends (¥75 per share, dividend-to-equity attributable to owners of the parent ratio of 3.3%), the total return ratio is 168.5%. For FY2027 (ending March 2027), an annual dividend of ¥75 (interim ¥37.50, year-end ¥37.50) is planned, continuing the policy of a dividend-to-equity attributable to owners of the parent ratio of 3.0% or more and a total return ratio of 40% or more.
Last updated: July 19, 2026