Tokyo – Tosoh plans to move its MDI business into more specialist product areas and attack new growing markets in its latest mid-term plan.
The company said it will aim its MDI business at growth markets in India and South East Asia. This is part of a more general aim to direct its ales in to high added value segments in a range of geographical areas.
I will also aim to increase its sales of monomeric MDI and plans to debottleneck its production facilities.
In addition to MDI, Tosoh also produces HDI. Medical applications are at the top of its list of markets for this material. The company promises to strengthen its supply and sales systems for this market.
Additionally, it sees good growth potential in specialist curing agents in the sector.
These strategic plans come into response to the company’s view that the market for its materials will get tougher. This is because the company believes that supply and demand of MDI has softened because of more overseas manufacturers.
Tosho said it believes that world MDI plant occupancy is likely to be in the mid 80% range in 2019. But, it predicts that this will fall to the mid 70% range by 2021.
MDI fits into Tosoh commodity sector. In the future these commodity businesses will be used to maintain cash-flow and supply internal clients with base materials. The main thrust of investment and M&A activity over the medium term at Tosoh will be in the Speciality businesses which include advanced materials, biosciences and organic chemicals.
The information is included in its medium term plan 2019-2021 published in mid-May.