High Performance Plastics Company

Last Update : Sep 30, 2020

Evolving the lives of people and resolving social issues through added-value creation based on "innovation" in business, products, and technology.

Ikusuke Shimizu President of High Performance Plastics Company
The High Performance Plastics Company is advancing the Medium-term Management Plan under the president’s policy of “Business Innovation toward 2022 ‘Resolution & Challenge’ + Revolution.” The term "Business Innovation" incorporates the belief that each and every member influences those around them by transforming the way in which they work, and in turn drives innovation in business. By building an organization that provides a setting for challenge and never assigns blame for failure, the company resolves to undertake challenges and thereby advance innovation in a way that does not settle for the status quo.

Business Overview

The High Performance Plastics (HPP) Company focuses on business development driven by high-value-added products that improve the security, safety, and comfort of the lives of people, and that realize a lower environmental impact. The company’s high-value-added products include conductive fine particles, liquid crystal sealants, interlayer films for automotive laminated glass, and other products that command top global market shares, as well as fire-resistant materials, rainwater storage systems that are essential for disaster prevention and mitigation, and other products. Among the advanced materials for the Electronics, Mobility, and Building and Infrastructure fields that the company has introduced to the global market, our proprietary fine particle, adhesion, and precise molding technologies have emerged as major strengths and now contribute significantly to expanding the earning power of the entire Group.

Risks and Opportunities

The HPP Company's business results are impacted by a variety of potential factors, including skyrocketing raw material prices that lead to higher manufacturing costs. Another risk faced by the company is the economic stagnation resulting from restrictions on business activities in Japan and overseas due to pandemics such as COVID-19. In contrast, pandemics raise the importance of remote medicine, smart factories, and other telecommunications infrastructure upgrades, and are driving the widespread use of 5G and IoT. As a result, these changes serve as an opportunity to expand sales in electronics-related businesses. Moreover, if the importance of automobile ownership is reexamined as a means of safe travel that avoids contact with other people, this move will potentially boost the expansion of the company's automobile-related businesses.

Conductive fine particles

Component packaging materials for semiconductors

Double-sided LCD fixed placement tape used in smartphones and tablets

Moldings for automobile bumpers

Interlayer film for
automotive laminated glass

Chlorinated polyvinyl chloride (CPVC)
resin compound

Thermal expansion fire-resistant materials

Rainwater storage system

Performance Highlights and a Review of the Previous Medium-term Management Plan

Performance Highlights

  • * Including Medical Business data up to FY2017.

Under the previous medium-term management plan, net sales in the HPP Company came to ¥322.4 billion during the plan’s final year in fiscal 2019, up 10.1% compared with the plan’s initial year in fiscal 2016. Operating income declined to ¥37.2 billion in fiscal 2019 due to fixed costs coming in ahead of strategic capital investments, M&As, and aggressive advancements of other growth investments. Operating income was also negatively affected by the impact of appreciation in the yen, weaker business results associated with the sudden deterioration in the business climate for SEKISUI AEROSPACE as a newly consolidated member, and a higher burden from amortization of goodwill. Despite steady growth in earning power due to cost reductions and structural reforms, the sudden deterioration in global market conditions has led to delays in realizing the effect of investments. In the three strategic fields of Electronics, Mobility, and Building and Infrastructure, net sales came to ¥239.4 billion in fiscal 2019, up 18.2% compared with fiscal 2016, primarily due to sales growth for high-value-added products in the Mobility field.

Medium-term Management Plan Drive 2022(FY2020-2022)

Under the current medium-term management plan, the HPP Company aims to achieve net sales of ¥360 billion (up 11.7% from fiscal 2019) and operating income of ¥48 billion (up 29.0% from fiscal 2019) in charting a course to regain the standing of a high-profit enterprise. In looking to double sales volume in fiscal 2030, the company is enhancing the portfolios for the three strategic fields and driving sales growth for high-value-added products. At the same time, the company is working to demonstrate the effects of growth investments that have been made thus far, including those in SEKISUI AEROSPACE. The company will also implement cost innovations across the supply chain, from purchasing to logistics, while at the same time reducing manpower through the consolidation of bases in Japan and overseas, and reviewing underperforming businesses. These moves are targeted at generating profits of ¥8 billion. Moreover, the company will strengthen the ESG management base by developing global human resources and promoting digital transformation.

Medium-term Management Plan and Growth-drivers for the Key Expansion Areas (Three Strategic Fields)

Electronics Field

The HPP Company supplies a wide range of fine particles, sealants, adhesives, tapes, films, and other products with electrical conduction/insulation, heat management, gap formation, buffering/protection, adhesive, and other functions, for various types of displays, electronics, telecommunications devices, substrates, and semi-conductors. Under the medium-term management plan, the company aims to achieve net sales of ¥66.7 billion (up 16.6% from fiscal 2019) in fiscal 2022 through expanded sales of products for the non-LCD field. This projection does not factor in a recovery in liquid crystal display market conditions. The ratio of sales in the overall field accounted for by non-LCD products will be extended from 50% in fiscal 2019 to 64% in fiscal 2022.

Heat resistant Selfa (semiconductor processing material)

The company’s UV release tapes balance strong adhesion with an easy peel off capability. Exposure to UV generates gas between the tape and the adherend, which cancels out the tape’s adhesiveness and enables it to be peeled off easily. These tapes thus allow the finer, thinner film wafers and other components that have emerged with the evolution in telecommunications technologies to be processed without damage.

Mobility Field

In addition to interlayer films for laminated glass and foam materials/molded resin for interior and exterior automotive-purposes, the HPP Company supplies heat release materials and electromagnetic wave-shielding materials for electrification/automated driving devices. The company also supplies interior and exterior parts for aircraft and drones, as well as carbon fiber-reinforced plastic molded products.

Under the medium-term management plan, the HPP Company aims to achieve net sales of ¥130.4 billion (up 14.6% from fiscal 2019) in fiscal 2022 based on expanded sales of high-value-added products. This projection does not factor in a recovery in automotive market conditions. Among these products, the sales volume of high-performance interlayer films will be extended 13% over fiscal 2019. Moreover, aircraft-related components will be fostered into a second pillar of profit.

Wedge-shaped interlayer film for head-up display (HUD) systems

The company’s wedge-shaped interlayer films are designed for the HUD systems used to display essential information on automotive glass. Because wedge bias control, multi-layer extrusion molding, raw material synthesis, nano-dispersion, and other technologies can be combined to provide the film with sound insulation, heat insulation, and many other capabilities, these films contribute to greater automobile comfort and safety.

Building and Infrastructure Field

The HPP Company supplies resin raw materials for heat-resistant piping, as well as fire-resistant, inflammable, and heat insulation materials; rainwater storage materials; and other materials and products that contribute to the safety and security of buildings and infrastructure, and to the solutions for social issues.

Under the medium-term management plan, the HPP Company aims to achieve net sales of ¥78.4 billion (up 14.6% from fiscal 2019) in fiscal 2022 by endeavoring to expand sales of its mainstay heat insulation and inflammable materials.

Inflammable certified material, thermal insulating urethane foam material for onsite use

Using proprietary resin synthesis technologies, the company's thermal insulating urethane foam material for onsite use is the first organic material to receive inflammable certification from Japan's Ministry of Land, Infrastructure, Transport and Tourism. This material overturns today’s understanding that "urethane is flammable" and significantly contributes to preventing fires and accidents caused by ignition at construction sites. It also helps resolve labor shortages at construction sites because it serves to reduce installation times.

Next Growth Area

Heat release materials for 5G base stations, etc.

Using a proprietary synthesis resin technology, this material balances high heat release and flexible properties. When used to cool down IC chips, which have continued to evolve into powerful heating elements as telecommunications speeds have increased with the widespread use of 5G, these materials protect 5G base stations from heat and contribute to sophisticated IT infrastructure.

SEKISUI AEROSPACE

SEKISUI AEROSPACE manufacturers interior and exterior aircraft parts, carbon fiber-reinforced plastic (CFRP), and other composite molded products. These products contribute to lighter weight aircraft parts and higher fuel efficiency for transport equipment. Along with improving the product mix to increase the ratio of high-value-added engine components, the company will employ existing technologies to expand deployment to the medical field.

Products that Contribute to the Development of CASE

SEKISUI CHEMICAL Group has produced a concept car. The car is made using more than 40 SEKISUI CHEMICAL Group products that contribute to the development of CASE as a trend in the automotive industry.
*CASE “C (Connected)”, “A (Autonomous)”, “S (Shared/Service)”, “E (Electric)”