TOKYO, JAPAN: Mitsubishi Chemical Holdings Corporation said that the MCHC Group will begin a detailed review towards re-organization of the group to integrate its three chemical operating companies - Mitsubishi Chemical Corp, Mitsubishi Plastics and Mitsubishi Rayon, into one company by April 2017.
The organizational restructuring detailed review study will be completed by end of March 2016.
The changing business climate of the Japanese chemical industry, domestic economic challenges such as low birthrate, an ageing population and declining demand, are some of the issues faced by the group. Also emerging nations are showing remarkable economic growth. In addition, changes in the industrial structure are positioned to accelerate rapidly in line with the advance of information and communication technology (ICT).
The MCHC Group’s highest priority in addressing these issues is to strengthen its business foundation to flexibly meet changes in the business climate and fend off fierce competition from European and US chemical companies, which have advantages of scale and earnings, as well as Asian corporate groups that have achieved tremendous development in recent years.
To tackle these circumstance - the three chemical companies - MCC, MPI and MRC must maintain their competitiveness. The need is to integrate their businesses, technology platforms and sales channels to accelerate the growth and globalization of their businesses.
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