New businesses highlighted in Nippon Soda’s Long-term plan

Some 100 bn yen ($1.12 bn) have been earmarked for investment over the next 10 years in Nippon Soda’s new long-term management plan, unveiled together with its three-year plan for fiscal 2010-2012. The vision is to cultivate new businesses and products with projected total annual sales of 40 bn yen by fiscal 2020, based on its existing platforms of agrochemicals, fine organic synthesis and functional materials.

The company’s long-term objectives are to achieve sales of 200 bn yen, operating profit of 20 bn yen and net profit of 10 bn yen in fiscal 2020 through the development of proprietary technologies, leading to new businesses, and the M&A of pertinent companies. Of the total investment, 55 bn yen will be channeled to general research; 20 bn yen to production expansion; 10 bn yen to additional research, including agrochemical registration; and 15 bn yen to contribute 10 bn yen in operating profit, out of the targeted 20 bn yen.

Under its three-year plan, with goals of 150 bn yen in sales, 7 bn yen in operating, 8 bn yen in pretax profit and 5 bn yen in net profit in fiscal 2012, Nippon Soda intends to widen its portfolio of unique products and foster new businesses in its chemicals division, and accelerate its development of new pesticides, pursue M&A opportunities and strategically promote its greenery, biocide and biopesticide businesses in its agro-products division. Overseas markets also will be explored.