The crisis has left its mark on Shin-Etsu Chemical (Tokyo / Japan; www.shinetsu.co.jp), the world’s leading PVC manufacturer. In the recently ended financial year (31.03.), sales of the PVC business division fell by about 25% to JPY 242.7 bn (about EUR 1.85 bn) the group reports. This means that Shin-Etsu’s PVC business, part of the “Organic and Inorganic Chemicals” division, generated about 26% of total group revenues of JPY 916.8 bn (2008: JPY 1,200.8 bn).

The US subsidiary Shintech (Houston, Texas; www.shintechinc.com) suffered from the effects of a weak housing market. Nevertheless, the group is planning to build a new plant, which would double its capacity for VCM, a crucial PVC feedstock. In Europe, Shin-Etsu PVC (Hilversum / The Netherlands; www.shinetsu.nl) showed a weak performance due to a decline in demand. The subhsidiary strengthened its market position in August 2009 by acquiring all shares in the former Cires (Estarreja / Portugal; www.cires.pt) joint venture – see also Plasteurope.com of 19.08.2009. Low demand and rising feedstock costs put a damper on PVC business in Japan, where the overall operative result of PVC activities dropped to JPY 17.4 bn (JPY 36.7 bn).

At JPY 83.9 bn (JPY 154.7 bn), group net profit declined by almost half. Shin-Etsu is planning further cost reductions. Despite the signs of a global economic recovery, the group says this is no reason to be confident about the future. In Japan, for example, unemployment figures and fears of a possible deflation are dampering spirits – one of the reasons why management for now has declined to give a forecast. The group currently is in the midst of liquidating its Mexican subsidiary Shin-Etsu Polymer Mexico.