Guideline to achieve
Our Commitment
Medium-Term Management Strategy 2031
("FY2031 Strategy")
We have set Our Commitment for the year 2030 to be "For people,
society and the earth, circulating resources for a sustainable future".
The FY2031 Strategy charts the course we must take
to achieve this commitment.
We have set Our Commitment for the year 2030
to be "For people,
society and the earth, circulating resources
for a sustainable future".
The FY2031 Strategy charts the course
we must take
to achieve this commitment.
Growth through Expansion
of Resource Recycling and Enhancing
the Supply of High-performance
Materials
and Products
Since the 20th century, the economic system of mass-production, mass-consumption, and mass-disposal has taken root in society. As a result, various global issues, such as resource depletion and global warming, have been taking place in recent years. It is necessary to address these issues in society, but what should we do to use limited resources without waste for the benefit of people, society, and the earth? As a means to do this, the idea of a circular economy has been attracting attention. In addition to designing products that are easy to recycle and reuse, prolonging their lifespan, and creating a system for sharing goods, we must also view unutilized waste as a resource and recycle it to create a sustainable society. We have decided to incorporate this way of thinking into our newly established vision of "Circulating resources for a sustainable future" for future projects. Our Medium-Term Management Strategy 2031 (FY2031 Strategy) charts the course we must take to achieve this commitment.
The FY2031 Strategy, which will last a period of eight years, encompasses two major phases: Phase 1 (FY2024 - FY2026) and Phase 2 (FY2027 - FY2031). The strategy is designed based on business opportunities and market conditions
surrounding us. The main point of Phase 1 is Strengthening Competitiveness. We will improve profit growth and
profitability while actively investing in medium- to long-term growth areas, such as resource recycling.
The main point of Phase 2 is Business Expansion. We will aim to increase business scale through the expansion of target
areas and further global development.
Business opportunities
for the Company
Expansion
of the resource recycling
Need to increase the rate of recycling metal resources, especially copper, for which demand is increasing, and to respond to recycling in new areas such as used LIBs by accelerating the adoption of xEV
Enhancing the supply
of high-performance
materials and products
Need to respond to the demand for xEV in automobiles, the high-performance materials in aerospace, and the product sophistication in semiconductors
Expansion
of the resource recycling
Need to increase the rate of recycling metal resources, especially copper, for which demand is increasing, and to respond to recycling in new areas such as used LIBs by accelerating the adoption of xEV
Enhancing
the supply of
high-performance
materials
and products
Need to respond to the demand for xEV in automobiles, the high-performance materials in aerospace, and the product sophistication in semiconductors
Phase 1
FY2024 - FY2026
Strengthening
Competitiveness
Improving profit growth and profitability by strengthening cost competitiveness and investing in medium- to long-term growth areas centered on resource recycling
Phase 2
FY2027 - FY2031
Business
Expansion
Expansion of business scale through regional development including overseas, in addition to expansion of target business areas
-
Strengthen metal resource recycling and promote the integration of Metals business and Environmental recycling business
(Strengthening E-Scrap processing, recycling of LIB/xEV materials and tungsten, and strengthening recycling of wrought copper products) -
Supply of products to growing markets such as semiconductors and xEVs, and expansion of carbide tools and tungsten business
-
Promotion of renewable energy projects such as geothermal power generation
(efforts to achieve 100% self-sufficiency in renewable energy power by FY2051) -
Implementing GHG reduction measures to achieve carbon neutrality by FY2046
Metals business
Contributing to the Development
of the Industry through
the Stable Supply
of Metal Resources
Resources business
There is a possibility that supply and demand for copper and other metal resources may become imbalanced in the future.
In particular, copper, whose demand is increasing as an essential material for realizing a decarbonized society, is
expected to see a decrease in its supply volume from mines.
This is why we are actively working on metal resource recycling, a process that involves repeatedly utilizing existing
metal resources, with the aim of securing a stable supply and contributing to Japan's industries and societal
advancement. Additionally, we invest in overseas copper mines, such as Mantoverde Mine in Chile, to procure clean metal
resources.
FY2031 Target
Leader in Resource Recycling of Nonferrous Metals
-
Securing at least 500,000 tons of copper concentrate from mines owned by the Company
-
Establishing supply chains for electrolytic copper (SX-EW)
Business
strategy
FY2024 - FY2031
-
Promotion of technological development to recover rare metal resources contained in copper deposits
-
Acquisition of copper mining interests and securing copper concentrates through continuous investment in mines
-
Expansion of electrolytic copper supply through SX-EW operations at copper mines
Important
measures
FY2024 - FY2031
-
Promotion of the Mantoverde Sulfide Mine Project (including development of new technologies such as cobalt recovery)
-
New participation in medium-scale copper mines
-
Participation in hydrometallurgy operations at copper mines
-
Increasing amount of copper concentrate collected from the current 150,000 tons to 500,000 tons or more in FY2031(Increasing the ratio in the amount of copper concentrate processed in the Naoshima Smelter & Refinery and the Onahama Smelter & Refinery from the current 10% to 30% in FY2031)
With the continued growth in copper demand, our goal is to stably secure concentrates. Alongside the objective of securing a three-fold increase in copper concentrate from our mines by FY2031, we also consider the new participation in medium-scale copper mines as an important measure. The Mining & Metallurgy Laboratories will focus on developing new technologies and refining resources-related techniques to ensure the stable collection of rare resources.
Smelting & Resource Recycling business
We are committed to producing high-quality metal materials using the "Mitsubishi Process," a uniquely developed, efficient, pollution-free method for continuous copper smelting. We are also expanding our resource recycling efforts by disassembling used home appliances and automobiles to regenerate metal resources.
FY2031 Target
Leader in Resource Recycling of Nonferrous Metals
-
Major and leading-edge operator in the resource recycling of nonferrous metals
-
Expanding processes of nonferrous metal resources not limited to E-Scrap
-
Becoming a core supplier in the resource recycling loop based on the world's top-class electrolytic copper supply capacity
Business
strategy
FY2024 - FY2031
-
Strengthening and expanding the networks to promote resource recycling
-
Expansion of electrolytic copper production capacity
-
Increasing the recycling rate by expanding the treatment of recycled products containing metal resources
-
Creation of rare earths and rare metals recycling businesses
-
Accelerating business developments in Japan and overseas
(E-Scrap, home appliances, automobile recycling)
LIB Recycling
-
Ensure global competitiveness through early development of a set of recycling processes from LIBs to battery materials, collection of black mass*, leveraging of the network established in the E-Scrap business, and highly efficient recovery of lithium carbonate, cobalt sulfate, and nickel sulfate from black mass
-
Increase our E-Scrap processing capacities and expand our business areas through three stages: (1) collection of used LIBs from end-of-life automobiles, (2) commercialization of black mass processing in cooperation with business partners, and (3) development of manufacture of precursor/cathode materials
Utilizing our world-class smelting technology and electrolytic copper production capabilities, we strive to expand
nonferrous metal recycling initiatives. Our primary focus is on recycling LIBs, which are expected to be increasingly
discarded with the widespread adoption of xEVs. Concurrently, we are developing technology to collect and refine rare
resources contained in the black mass generated during the LIBs recycling process.
*Black mass: Powders obtained after heat-processing LIBs
Advanced Products
Addressing Demand through the
Power
of High-performance Materials
and Products
Copper & Copper Alloy business
The demand for wrought copper products is growing worldwide due to the expansion of the xEV market, the increasing need for renewable energy, and advancements in healthcare. We utilize electrolytic copper produced through smelting as raw materials to manufacture various wrought copper products, including ingots, strips, plates, and rods, tailoring them for customer needs. We proudly hold the largest market share in Japan. To address the growing demand, we are making investments to enhance our production capacity.
FY2031 Target
Global First Supplier
-
Japan: Establishing a dominant position as Japan's No. 1 manufacturer of wrought copper products as the largest supplier
-
Overseas: Strengthening key account (KA) strategy based on alloy development capabilities
Business
strategy
FY2024 - FY2031
-
Improve the recycling rate of wrought copper products and establish a scrap platform base
-
Overseas (Luvata): Rapid entry into growing markets (xEV, healthcare, and environment)
-
Expanding sales and strengthening services to overseas customers by looking into new overseas plants to carry out downstream processes, with domestic plants acting as a guiding hand
While enhancing our production capacity for high-performance metal alloys, which are one of our strengths, and supporting the evolution of growth markets, including the xEV market, we will aim to establish an overwhelming position as Japan's largest supplier. Outside Japan, we will aim to further expand business by collaborating with Luvata, our Group company that has a dedicated license for GloBrass®, a next-generation lead-free brass with excellent machinability. Additionally, we will contribute to reducing GHG emissions by increasing the recycling rate for wrought copper products.
Electronic Materials
& Components business
To support the evolution of IT and electronics technology, which encompasses daily necessities such as computers, smartphones, automobiles, and home appliances, we offer unique, high-value-added products that leverage our proprietary materials. Our product lineup is extensive and includes processed silicon products, sealing products, plating chemicals with extremely low alpha-ray emissions for semiconductor electrodes, automotive thermistor sensors, and solar heat-ray shielding paint. Some of our products hold the number one global market share.
FY2031 Target
Global First Supplier
-
Providing products and solutions with added value through concept-in (promoting the adoption of our products at the initial concept-setting stage of product development), focusing on the semiconductor and xEV markets
-
Highly profitable business entity and sustainably growing entity that is recognized as an indispensable partner in the market
Business
strategy
FY2024 - FY2031
-
Highly capital-efficient management through continual restructuring of the business portfolio
-
Strategic investment in focal products in growth areas
-
Developing and securing human resources for the creation of new businesses and the promotion of business alliances
-
Improvement of manufacturing capabilities and DX to enhance production sophistication and profitability
-
Providing business and social value (SDGs) for carbon neutrality
In April 2023, we established the Semiconductor New Technology & Materials Business R&D Center to create a consistent R&D system across the business unit and drive new business creation. Specifically, we are accelerating exploration of new business opportunities and products related to semiconductor materials and components.
Metalworking Solutions business
Becoming the Strength
of the World's Manufacturing
Metalworking Solutions business
We provide carbide tools used at manufacturing sites of a wide range of industries, including automotive, aerospace,
medical, die and mold, and hygiene.
Additionally, we collect used carbide tools and recycle them as raw materials for tungsten, a rare metal, contributing to the establishment of a recycling-oriented society.
FY2031 Target
A Leading Company in Tungsten Products Recognized by Customers Globally
-
Providing tungsten products and solutions with outstanding technology to manufacturing sites around the world
-
In addition to the core business of carbide tools, the tungsten business and the solutions business will be the mainstay of earnings
Business
strategy
FY2024 - FY2031
Transforming into a truly global company with the aim of
autonomous business development in strategic markets
-
Stable supply of the world's top quality, high-efficiency products utilizing the strength of materials and coating technology (Carbide tools business)
-
Expansion of business scale for rechargeable batteries in addition to carbide tools, etc. (Tungsten business)
-
Strengthen environmental responsiveness (Tungsten business)
-
Commercialization of solution sales to manufacturing sites (Solution business)
Utilizing our strengths in proprietary materials and coating technology, we enhance our initiatives in machining difficult-to-cut and new materials. We reinforce a system for collecting used carbide tools and recycling them into tungsten raw materials, thereby contributing to a recycling-oriented society.
Additionally, we ensure a stable supply of raw materials by strengthening the recycling capacities of Japan New Metals Co., Ltd., our Group company. Leveraging globally developed technical centers and digital technology, we offer various metalworking solution services to our customers.
Renewable Energy business
Offering Expertise Cultivated
through
Geothermal and Hydroelectric Power
Generation to Society
Renewable Energy business
Utilizing this planet's limited resources without waste and creating a sustainable society with cleaner energy are humankind's major issues. Our company has employed renewable energy sources, such as geothermal, solar, and hydroelectric power, to contribute to the realization of a sustainable society. We aim to generate more than three times the current volume of electricity to offset our electricity consumption by FY2051.
FY2031 Target
Expansion of Renewable Power Generation to Achieve 100% Self-sufficiency in Renewable Power Electricity
-
Further expansion of geothermal power generation business
-
Expansion of business areas (wind power generation and power generation-related businesses)
Business
strategy
FY2024 - FY2031
Consolidate the renewable energy business in the Strategic Headquarters as a company-wide effort to expand the business from a long-term perspective
-
New development at one location every three years to expand business (Geothermal)
-
New entrants into wind power generation where power generation costs are expected to decline in the future (Wind)
-
Further development of new biogas plants (Biogas)
Expansion of renewable
energy power generation
-
To generate the volume of electricity that will offset our electricity consumption by FY2051, we are accelerating the establishment of geothermal power generation development systems and expansion of business. We are developing new renewable energy power generation projects, with a primary focus on wind power.
