The Mitsubishi Monitor talks with Mitsubishi Chemical President Ryuichi Tomizawa on the tenth anniversary of the company's merger as he reflects on the current state and aspirations of the company. We learn that employees are embracing a new culture that welcomes constant change.

After more than a year and a half, the company's two-year management plan, – KAKUSHIN Plan: Phase 1, ” is nearing its conclusion. How is it progressing?

In fiscal 2001, the Mitsubishi Chemical Group cleared the slate for the Group's recovery by taking massive write-offs. Consequently, we registered our worst financial performance ever. – KAKUSHIN Plan: Phase 1 ã Rebuilding Foundations ” (Phase 1) was created as the first stage, in which the Group comprehensively rebuilds its foundations, concentrating on reformation of its business portfolio, improving its financial structure and making preparations for progress and growth in the following three years. We are now set to achieve the numerical targets of Phase 1; in fact, we realized our target for reduction of interest-bearing debt a full year ahead of the timetable. The main thrust of Phase 1 calls for a fundamental repositioning of the core business and reformation of the business portfolio through review of all business operations. We have worked hard and have almost achieved this primary goal.

What is the key to Phase 1?

What is most important is the remarkable change in our employees' attitudes. It is easy to – stay the course; ” that is human nature. To change one's mindset is a difficult thing. But, our business operations are diversified and based on the three pillars of petrochemicals, performance products (performance and functional products) and health care, so that we must keenly anticipate and adjust to changes in society and the times. We have to change shape and reinvent ourselves as society evolves. I want all of our employees to accept the necessity of change, even look forward to it, and take up the challenge willingly and without anxiety. We are moving toward creating – KAKUSHIN Plan: Phase 2 ã Consolidation of Strengths and Building Momentum ” (Phase 2), about which discussions began in April. I am pleased to see the attitude within the company evolving as this process moves forward.

Please tell us why the company places such critical emphasis on R&TD (research and technology development)?

I think the most reasonable way to get ahead in global business is through R&TD. To sustain growth, it is important to develop as many products and businesses as possible that take advantage of the advanced technologies available to us here in Japan. The engines of growth are research and development capabilities and manufacturing technology, and we must increase our power in these areas. For us, research is no longer an ivory tower activity; today, employees in business operations must work together with researchers to ask what is needed in the market. There must be constant discussion as they jointly determine what offers the greatest potential for success in business. Our research needs to have this direct connection with new products and business opportunities.

Which product fields today are receiving the most attention?

Areas of focus include our specialty information and electronics products, such as materials and components for flat panel displays, and biotechnology, including biomass applications in petrochemical materials. Another focus is nanotechnology, with such new materials as fullerenes. Among all of these areas, we are taking an interdisciplinary, integrated approach to research and development. In addition to incubating new products with these cutting-edge technologies, we strive to introduce innovations and advances directly to the manufacturing process itself for petrochemical products.