New Year's Message from Showa Denko CEO Ichikawa: Let's Strength

New Year's Message from Showa Denko CEO Ichikawa: Let's Strengthen Our
Businesses to Return to a Growth Track 
Tokyo, Jan 6, 2014 - (JCN Newswire) -  While economic recovery is expected in
2014, we should not be very optimistic about our business environment because
we need to be prepared for stagnation of domestic demand after the consumption
tax hike and economic slowdown in China and other emerging countries. In view
of the intensifying global competition and the shrinking Japanese market, we
cannot return to a growth track unless we reform our business models in all
areas by accurately understanding the structural changes in the market and
taking proactive action. 
Under these circumstances, we are launching "Phase II" business plan
for the 2014-2015 period under PEGASUS. We will continue taking various
measures to strengthen our businesses, quickly detecting continual changes in
the business environment and seizing new business opportunities for future
growth. 
Let's Work Together toward Sustainable Growth 
In the Phase II period, we will continue to position the HD media and graphite
electrode operations as "Base (Growth)" businesses. These two
businesses, which serve as "Wings" of PEGASUS, are now in a period of
adjustment due to the changes in the market environment. We will steadily
strengthen their production systems and business foundations in the 2014-2015
period in preparation for future growth. 
Meanwhile, we will strengthen our businesses in semiconductor-processing
high-purity gases, functional chemicals, high-purity aluminum foil, and
aluminum cans, positioning them as "Growth" businesses. To seize
business opportunities in the rapidly growing Asian markets, including ASEAN,
we will allocate necessary resources to these operations and expand them in
terms of both business scale and profit. 
In the category of "Base (Stable)" businesses, such as
petrochemicals, basic chemicals, industrial gases, and rare earth magnetic
alloys, we will increase their profitability by strengthening their competitive
power. We will achieve this by developing high-quality products and advanced
technologies as well as renewing production facilities. We will also
drastically reduce costs of these businesses. 
Meanwhile, we must realize safe and stable operation, which forms the basis
for our sustainable growth. Needless to say, we will continue to give top
priority to safe and stable operation in each business area. 
In the "New Growth" category, we need to quickly realize good
results. We will preferentially allocate resources to new development themes -
SiC epitaxial wafers for power devices, fuel cell catalysts, and LIB materials
- and to certain themes found in peripheral areas pertaining to existing
businesses. 
The year 2014 is very important as the first year of the Phase II period.
While it is important to reflect on the past, we should not stop there. I ask
everyone to work together and face up to the difficult situation, seriously
consider what you should do and can do, and achieve a breakthrough. Let's
join forces to realize the growth of the Showa Denko Group! 
-- Hideo Ichikawa, President and CEO, Showa Denko Group. 
About Showa Denko 
Showa Denko K.K. ('SDK'; TSE: 4004, US: SHWDF) is a major
manufacturer and marketer of chemical products serving a wide range of fields
ranging from heavy industry to the electronic and computer industries. SDK
makes petrochemicals (ethylene, propylene), aluminum products (ingots, rods),
electronic equipment (hard disks for computers) and inorganic materials
(ceramics, carbons). The company has overseas operations and a joint venture
with Netherlands-based Montell and Nippon Petrochemicals to make and market
polypropylenes. In March 2001, SDK merged with Showa Denko Aluminum Corporation
to strengthen the high-value-added fabricated aluminum products operations, and
is today developing next-generation optical communications-use wafers. For more
information, please visit www.sdk.co.jp . 
Contact: 
Showa Denko KK (SDK)
Public Relations Office
Phone: +81-3-5470-3235 
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