TOKYO, February 26, 2015 _ Ube Industries, Ltd. announced today that it has made the decision to integrate its two chemical companies-the Chemicals & Plastics Company and Specialty Chemicals & Products Company-into the Chemicals Company.
Under the integration, Ube Industries will realign the chemicals organization and accelerate the selective focus on business segments. The move is also aimed optimizing the allocation of business resources and enhancing operating efficiencies, while further unifying the direction of manufacturing, sales, and engineering to rapidly address customer needs. These efforts will assist Ube Industries in its urgent efforts to restore business results from the chemicals business.
The Pharmaceutical Division is not affected by the integration and will continue to operate under its present organization, due to its business being contractually based and differing significantly from the rest of the chemicals business.
The new Chemicals Company will establish a Strategic Operational Department to oversee business and technology strategy encompassing the entire chemicals business, and to strengthen new business creation and M&A development.
The current seven business units (three business units in the Chemicals & Plasitcs Company and four business units in the Specialty Chemicals & Products Company) will be integrated into four business units under the new Chemicals Company, according to the relationship with markets and supply chains. The four business units are:
For development and production, the Production & Technology Division has until now overlapped both chemicals units, but will now be integrated under the Chemicals Company. The consolidation will bring a number of development centers and a new Production Division into the Chemicals Company, with the Production Division overseeing plants and the Production Technology Center. These changes will streamline and flatten the organization to enhance mobility and enable the Chemicals Company to rapidly meet the increasingly sophisticated requirements of customers and markets.
The Chemicals Company will also create a new Chemicals Quality Assurance Department in an effort to further strengthen the framework for chemicals quality assurance.
With the integration of the two chemicals companies, the Europe Operational Unit and Asia Operational Unit that oversee key international operations in Spain and Thailand respectively will be aligned under the Chemicals Company, to enhance the level of collaboration with product departments. The Europe Operational Unit will be renamed the Europe and Americas Operational Unit, expanding its territory to cover the Americas and overseeing the operations of chemical subsidiaries of the UBE Group in an effort to expand business in the Americas.