Investor Presentaiton
Industrial Materials
2-3-2. Terephthalic Acid
THE KAITEKI COMPANY
■Expected to show an operating profit in fiscal 2017 as a result of revisions in the price schedule
at bases, improvement in the terms of trade for paraxylene, and implementation of cost
reductions
■Implemented policies to reduce inventory valuation risk when prices of raw materials decline
Business environment
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Market conditions continuing to stagnate because of large excess supply capacity in China
Priority measures
➤ India
Scheduled to reduce costs through electric power purchases from the grid (Mar. 2015) and converting to coal fuel
(heavy oil →> coal: end of 2015)
Aiming to return to profitability through changes in the domestic price schedules (including antidumping tax)
➤ Indonesia
Changes in domestic price schedules (maintaining PTA flooring)
South Korea
Reduce losses substantially through optimizing production operations (including downsizing)
Increase domestic share as Korean competitor withdraws from the business
Linking domestic and overseas prices to paraxylene
China
Structural reform with a view also to inviting new partners
Alliances in the energy field with corporations in the vicinity, considering changing fuel to be used
Continue to link domestic prices to paraxylene
Mitsubishi Chemical Holdings
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