FY2020 was a year of major changes, both inside and outside of Polyplastics.
One was COVID-19. The pandemic has caused significant damage to the world’s economy, while, at the same time, giving rise to new needs in society and different approaches to how we work.
The other one was the change within our company. In October of last year, Polyplastics moved from a US-Japan joint venture, as it has been since its founding, to a wholly-owned subsidiary of Daicel Corporation. This change has helped to simplify corporate governance and allows for more nimble managerial decision-making.
Thus, from FY2021 we have embarked on a new, five-year Mid-Term Business Plan (MTP) which is adapted to these two areas of change. In terms of business, our key focus for the medium term between now and 2025 is to strengthen supply capacity of COC, LCP and POM and to earn the trust of customers in the European and American markets. In addition, we are working to adapt to the world-changing technological innovations taking place in and between various industries, including automated driving and electrical motor innovation in the automotive industry and the launch of 5G communications in the ICT industry, while, at the same time, continuing to pursue CSR activities that contribute to the realization of a more sustainable society.
Our MTP is designed to provide clarity of direction for Polyplastics in a time of global economic uncertainty. It goes without saying just how important it is that we change in response to a changing environment. At the same time, however, our commitment to being the global No.1 engineering plastic solutions provider for our customers remains unchanged and undimmed. We are moving forward into a new business landscape, equipped with a new MTP for developing and expanding Polyplastics’ distinctive engineering plastic business.
FY2020 was an important year in terms of the process for realizing a more sustainable society. In line with the greenhouse gas reduction targets established by the Paris Agreement for 2020 onwards, companies will be expected to achieve specific results. Furthermore, beyond the Paris Agreement targets, there are the voluntary commitments of the world's major nations to achieve carbon neutrality by around 2050, with the year 2020 serving as an important, collective milestone internationally in terms of the timeline for greenhouse gas reductions.
Polyplastics, as well, is working, via our MTP, to reduce greenhouse gas emissions and other negative environmental impacts from our business practices. In the MTP, by utilizing advanced manufacturing technology possessed by Daicel, we will put in place manufacturing processes that are among the most energy-efficient in the world, switch to using energy with an even lower carbon footprint, and develop a plan for bringing biomaterial-derived POM to market. Additionally, another socially conscious initiative we are pursuing is the development of monomaterial package films using COC and polyolefin. In 2025, Europe is planning to introduce a pricing scheme for plastic packaging that is based on environmental load. And in order to accelerate a switch from disposable materials to materials recycling as a practical means of lowering the environmental load created by plastics, we will work, as a COC resin supplier, to facilitate the widespread adoption of highly functional and easily recyclable polyolefin monomaterial film.
Engineering plastic is a valuable material used in fields where dependability is especially required. In the field of mobility, engineering plastic is an essential material for manufacturing lighter, more energy-efficient vehicles, for developing vehicular automation and for improving safety; while, in the field of ICT, engineering plastic helps make high-performance 5G devices possible.
We will provide data-based solutions, as engineering plastic experts, for realizing highly reliable and long-life products with a minimum of materials. In FY2021, we opened a Technical Solution Center (TSC) in Europe at a location adjacent to Frankfurt Airport in Germany, which now gives us six TSC working together in a worldwide network that delivers localized solutions to customers.
Any company has to contribute to realizing the sustainable society in the future. We will continue to take on the responsibility of tackling this challenge as a leading supplier of engineering plastic which is now essential material for society.