Taiyo Nippon Sanso Corporation (TNSC) has revealed a finalised version of its new four-year medium-term management plan in which it aims to ‘emerge onto a still wider stage.’
The Tier One corporation set its Ortus Stage 1 three-year medium-term management plan in 2015, which focused on strengthening TNSC’s resources to increase its global competitiveness and establish a strong position within the market.
The new Ortus Stage 2 plan, which will commence in fiscal year 2018, rolls on from the first scheme and will focus on the promotion of profitable growth.
Under the policy, TNSC aims to generate revenues of approximately ¥800bn ($7bn), compared to ¥580bn ($5bn) in 2015.
Basic policies under stage two of the business plan also include expanding its domestic gas business, accelerating its R&D strategy, continuing its globalisation policy and a structural reform. A statement from TNSC explained, “Rapid strategy execution is indispensable in responding to overseas market growth and oligopolisation.”
TNSC’s new policy targets expansion in three key geographical areas. Firstly, the company plans to consolidate its leading position domestically in Japan by expanding gas and all gas-related business by maximising group synergy.
In the US, the industrial gas giant plans to build the depth of its presence in new business areas by expanding its product groups through active capital investment and mergers and acquisitions (M&A).
In Asia and Oceania, TNSC aims to improve its market share in new regions and business undertakings in unoccupied regions via the reinforcement of governance through regional holding companies.
Under Ortus Stage 2, TNSC also revealed plans to invest ¥340bn ($3bn) over a four-year period, of which 70% will be allocated to strategic investments. These investments will centre on M&A and large-scale capital expenditures both nationally and internationally.
Additionally, TNSC has announced it will expand its business territory and reinforce operational density; acquire new products, technologies and supply chains; and expand its medical business.