Mitsubishi Chemical to rebuild its petrochemical division

July 10, 1997 Mitsubishi Chemical Corp. (MCC) plans to rebuild its petrochemicals division, including olefin, synthetic resin, and synthetic fibre raw material businesses. Aimed at bolstering global competitiveness in petrochemical raw materials at its Kashima and Mizushima complexes, and in derivatives at its Yokkaichi factory, the plans call for optimum positioning of personnel in manufacturing and sales divisions and lowering distribution and other costs to yield a JPY 30 billion ($ 261 mm) improvement in petrochemical division business performance by March 2000.
Competition within Japan's petrochemical industry is heating up on a global scale, not only with Western giants but with Asian entities as well. To survive the competition, MCC is in the midst of implementing a medium-range management plan dubbed the "974 project." The plan seeks to realise cost savings totalling Y 40 billion through company-wide efforts to cut operating expenses, streamline materials procurement and product distribution, and bolster employee efficiency by the end of the current fiscal year ending March 1998.
According to company officials, MCC has already achieved its Y 40 billion target, and savings may reach Y 50 billion when the project ends.