The Mitsubishi
Monitor talks with Yoshiyuki Sumeragi, president
of Mitsubishi Rayon. |
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Mitsubishi
Rayon started out in 1933 as a producer of rayon staple
for textiles. The company since has transformed itself into
a high-technology chemicals manufacturer that boasts specialized
strengths in important product sectors. What have been the
most memorable turning points in your corporate transformation?
Our first big move beyond textiles was in 1943, when we
developed acrylic resins for cockpit canopies on aircraft.
Products based on acrylic technology later became our core
business. Mitsubishi Rayon today ranks among the world's
three largest manufacturers of acrylic resins and related
materials. We took two more important steps in the 1970s,
when we established footholds in carbon fiber and in plastic
optical fiber. And in 1983, we began marketing functional
membranes. Those membranes have become the basis for a large
and growing business in products for water purification
and other applications.
So we have come a long way beyond textiles,
though our product lines all share common roots in fiber,
and we even continue to supply a lot of material for textiles.
Today, basic acrylic materials are the heart of our sales
portfolio. But we are using our core technologies to carve
footholds in higher value-added products in such sectors
as information materials, water treatment, and construction
materials. We also have put new and traditional technologies
to work in life science business, such as our new DNA chips
for diagnostic applications [Mitsubishi Monitor, December/January
2000/2001].
Is the company
on schedule in its progress toward your long-range goals?
Yes. We are aiming for a big increase in business volume
by 2005. But we already have deployed the basic technologies
that we are counting on to generate that growth. And we
are honing a competitive edge in each technology to ensure
that growth proceeds on schedule .
What about
profitability? How will you maintain profit margins while
expanding your business?
We will do better than maintain our
profit margins. We will broaden them. We already have completed
most of the investment in product technology and production
capacity that we need to attain our medium-range targets.
So sales growth will flow directly to our bottom line. Meanwhile,
we continue working on products and technologies to keep
our sales and earnings growing over the long term. |
 How
do you foster a corporate culture that is conducive to new
ideas to spawn those future products and technologies?
We encourage initiative in several ways. Performance has
replaced seniority as the main factor in determining compensation
and promotions. And we have established clear goals for
individuals and teams. That has made us more responsive
in evaluating and rewarding employee effort..
Japanese personnel
management has received criticism for rewarding employees
more for avoiding mistakes than for trying new ideas.
That's never been the case at Mitsubishi Rayon. Not for
as long as I've been here anyway. If it was, I wouldn't
be here. Nobody has led this company into more mistakes
than me [laughs]. Seriously, managers here always have encouraged
employees to try out new ideas. If something doesn't work,
then we try something else. That's how we keep growing.
What's in store
for Mitsubishi Rayon operations outside Japan?
Expansion. We are conducting a feasibility study for a Chinese
plant to produce acrylic resin for automotive tail lamps.
And we need some local production capacity for acrylic monomers
in the U.S. market. You'll be seeing some new Mitsubishi
Rayon plants around the world in the next few years.
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Corporate
governance is a hot topic these days. As president, who
do you answer to? Do you really regard the shareholders
as your boss?
Serving the interests of shareholders is a core responsibility
for me as president. But my responsibilities are broader
than that. I am responsible for serving the interests of
all our stakeholders, including customers, employees, suppliers,
partners, and members of the community at large, as well
as shareholders.
Has concern
for shareholder value affected the way you actually run
the company in any concrete way?
Shareholder value is
a central consideration in management at Mitsubishi Rayon.
And yes, we are beginning to demonstrate our concern for
shareholder value in visible ways. A good example is our
recent agreement with Mitsubishi Chemical to pool the two
companies' resources in acrylonitrile and some related chemicals.
That agreement reflects an increased commitment to raising
return on assets.
What's ahead
for the Mitsubishi companies? Will they drift apart? Or
will they maintain close ties?
I hope and believe that
the companies will remain close. We share an invaluable
name and reputation that help us all immensely in our marketing
activities. Of course, all of us continue to foster ties
with a broadening range of customers and partners outside
the Mitsubishi periphery. But we stand to benefit greatly
from honoring our corporate kinship.
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