Mitsui Chemicals

President Fujiyoshi's New Year Message (Summary)

January 7, 2008

Happy New Year, everyone.

During the past year, we have faced a severe business environment due to record-high prices of feedstocks. In such a harsh movement, the Mitsui Chemicals Inc., (MCI) will finalize its Mid-term Business Plan covering the past 4 years with the keyword “Change of Business Structure and Strengthen of Profitability,” (the 2004 MTP) coming March. To our great pleasure, our operating income accumulated during the 4 years will go well beyond the target set in the 2004 MTP.

In 2007, for the Performance Materials and the Advanced Chemicals business sectors, we established 3 EPT Plant at Ichihara Works, acquired toner resin business from Sekisui Chemical Co., Ltd, and welcomed Sankyo Agro Co., Ltd. as a wholly-owned subsidiary of the MCI. As for the Basic Chemicals business sector, we expanded production capacity at production sites in North America, Thailand and China, and established a new company in India, in order to strengthen PP automotive materials business. Moreover, as a part of our strategic R&D project, we completed a multipurpose semi-commercial plant and high-functional film center, aiming to accelerate development of new products for Performance Materials Business.

Business environment will remain sluggish this year, because of continuous elevated prices of feedstocks as well as economic slowdown triggered by subprime loans. We shall brace ourselves, and move forward to achieve the newly drawn-up Mid-term Business Plan (the 2008 MTP), in order to realize the Grand Design which sets goals with an eye on further growth in the next 10 to 15 years. We shall make every effort for the following three points; lay groundwork for the three business pillars of “Performance Materials Business,” “Advanced Chemicals Business” and “Basic Chemicals Business”; complete balanced 3 axes management consisting of economy, environment and society; create new innovative technologies.

I hope every one of you will remain mindful of “Face to Face Communication” and “Teamwork.” These mindsets are keys to promote an “Open-minded” corporate culture, which is essential to make an innovative corporate culture.

Let's join forces to realize our Corporate Target, “Chemistry, Innovation, Dreams—The Mitsui Chemicals Group is constantly pursuing innovation and materializing dreams with the wonder of chemistry.”