Exclusive extracts from this 26-page-long report:
- Who is the player?
Created in 1913 by the House of Sumitomo as a fertiliser plant in Ehime prefecture, Japan, Sumitomo Chemical is today a leading global chemical company with operations spanning Petrochemicals & Plastics, Energy & Plastics, IT Chemicals, Health & Crop Sciences, Pharmaceuticals, and Others (chemical plant engineering, transport and warehousing). [...]
- What are the player's strategies?
Sumitomo Chemical is actively engaged in further shifting its group focus from bulk to high margin specialty chemicals. To facilitate this move downstream, the group eliminated its Basic Chemicals division in 2015 and split the component businesses among existing group divisions as well as the newly created Energy & Functional Materials unit. Over 2016-2018, 90% of R&D spending and 80% of capex have gone towards raising capabilities in specialty chemicals' production. A key initiative has been the extension of its JV with Saudi Aramco (37.5% Sumitomo Chemical–37.5% Saudi Aramco–25% listed on Saudi Stock Exchange), called Petro Rabigh Phase 2, which involves the construction of 12 high added value petrochemicals facilities. […]
- What are the player's strengths and weaknesses?
Strong presence in Asia, the fastest growing petrochemical market in the world, which accounted for 75.3% of sales in 2017.
The main share of group operating profit is generated by high margin specialty chemicals (+60%) and the company plans to further raise this ratio. […]
Dependence on naphtha feedstock, which remains at a disadvantage cost-wise against ethane.[…]
- What is the player's financial position?
The financial indicators included in the report include: Consolidated net revenues, Consolidated operating income and margin, Consolidated net profit and margin, R&D spending and ratio, Sales by segment, Sales performance by segment, Sales by region, Sales performance by region, Profitability ratios, Liquidity ratios, Solvency ratios and Free cash flow and capital expenditure.