Outline of Medium-term Action Plan "GS-Twins" and President Interview
Overview of the GS-Twins Medium-term Action Plan (Fiscal 2009 to Fiscal 2011)
What is "GS-Twins"
GS-Twins is an action plan in order to restore the profitability materially hurt by the global economic crisis within this 3 year period and to become a specialty chemical company with a presence as set forth in the "10-Year Corporate Vision."
Key Initiatives
(1) Improve profit structure
The Company will continue to;
- (i) improve the business portfolio (reduction of and withdrawal from less profitable business fields);
- (ii) make effective investments in facilities (selection of investment projects);
- (iii) improve cash flow (reduction of inventory);
- (iv) improve break-even point through thorough reduction of expenses and costs (particularly reduction of the fixed cost); and
- (v) downsize its organization and optimize its personnel.
(2) Creation and expansion of new business
The Company will invest its management resources into the highlighted fields in which its technological potential is maximized and create an environmental-oriented business.
- (i) In environmental areas:
- water treatment business - sewage treatment and recycling, recovery of valuable resources in the sludge
- (ii) In energy areas:
- new energy - solar energy (an encapsulation element of solar panels, etc.), hydrogen energy (element of fuel batteries, etc.)
- (iii) In optical and electronic business areas:
- illumination parts and transparent conductive films etc.
(3) Acceleration of global strategy for core businesses
In the internationally competitive core material businesses, such as the vinyl acetate business, the Company will regionally further expand its business by mergers and acquisitions, accelerating development in the emerging economic market and attacking the existing markets that the Company has not already exploited
The Company will, through the 3-year execution of the above-mentioned measures, return to the profit structure envisioned under the GS-21 measures, and prepare for sustainable growth as set forth in the "10-Year Corporate Vision. "
- Shareholder Return
The financial, capital, and shareholder return policies under GS-Twins.
