Creating New Value via a Combination of Technologies Accumulated over Many Years
Hideki Takahashi
Executive Officer,
Life Innovation Division Representative Director and President,
Denka Seiken Co., Ltd.
Thanks to drastic advances in medical technologies, Japanese people are expected to enjoy an even longer life expectancy with an unprecedented number reaching 100 years. Because of this trend, life-long health maintenance has become a matter of growing public concern. With this in mind, the Life Innovation Division, which upholds a policy of “respecting the dignity of life” and “protecting people’s health,” is strengthening its key operations backed by decades of accumulated technologies. At the same time, the division is accelerating the development of new businesses. Through these pursuits, we aim to expand the scope of our operations to include cancer remedies and gene-based diagnostics, building on the core antigen and antibody reaction technologies that helped us secure a robust track record, particularly in the field of infectious disease countermeasures. Furthermore, we will create new value and contribute to society by taking advantage of a combination of the material and processing technologies Denka has developed over the course of its operations as a chemical manufacturer.
The division handles vaccines and diagnostic reagents produced by Denka Seiken, a Group subsidiary boasting a history spanning nearly 70 years, and a macromolecular sodium hyaluronate preparation manufactured employing Denka’s biotechnologies. With these products serving as the core, the division is also engaged in the development of vaccines via the application of plant-based gene modification technologies possessed by Germany-based Icon Genetics GmbH while providing panel examination aimed at identifying cancer-associated genes. In short, the division is developing specialty businesses in fields of disease prevention, diagnosis and treatment.
We will place particular focus on commercializing a panel examination service for identifying cancer-associated genes. Building on the Denka Group’ strong presence in the field of diagnostic test kits employing antigen and antibody reaction, we will expand into such businesses as gene-based diagnostic services. By doing so, we aim to provide an even broader range of solutions that transcend our traditional scope of operations focused on helping identify causes of disease.
Denka Company Limited will merge with Denka Seiken, the latter of which has been charged with vaccines and diagnostic reagents—the Group’s mainstay offerings supporting its life innovation business. This move is expected to facilitate the business portfolio shift aimed at specializing our operations while supporting the realization of speedier decision making and stronger corporate governance. In this way, we will accelerate the expansion and development of our healthcare-related operations.
We will also strive to expand the scope of operations via the promotion of open innovation, which involves partners from academia as well as those from within and outside of the chemical industry, in addition to pushing ahead with our ongoing efforts to strengthen our key operations and launch new businesses.
Note: With the vertical axis and horizontal axis representing social issues/needs and advances in our technological development, respectively, the value-shift diagram indicates the characteristics of each product and solution as well as how they will contribute to future value creation.
Over time, the need for diagnostic solutions has burgeoned and diversified. The Denka Group has mainly provided diagnostic reagents and diagnostic test kits employing antigen and antibody reaction technologies to meet such needs.
Looking ahead, we will strive to contribute to the enhancement of people’s quality of life (QOL) by expanding into the field of gene-based diagnosis.
CANCERPLEX® is a comprehensive examination system for identifying cancer-associated genes via the combination of a next-generation sequencer*1 and bioinformatics technology.*2 This system is capable of detecting more than 400 cancer-associated genes by carrying out the accurate and detailed analysis of gene alteration attributable to a solid tumor. To contribute to the enhancement of people’s QOL, we will assist each patient in the optimal selection of treatment methods through the commercialization of CANCERPLEX®.
Taking Advantage of Denka’s Unique Technologies to Support the Development of Innovative Products
Ikuo Ishida
Executive Officer,
Electronics & Innovative Products
Employing a variety of essential technologies, the Electronics & Innovative Products Division offers a robust lineup ranging from functional fillers, thermal solution components and electronic packaging materials to structural adhesives. In short, the division is delivering products that are essential to the field of electronic materials. To contribute to society in the environment and energy field, we are pushing ahead with the specialization of our operations, to this end accommodating the latest needs arising from the popularization of EVs and other eco-friendly vehicles while delivering products that help promote the miniaturization of electronics devices and enhance their performance, safety and reliability. Furthermore, we are engaged in the development of new products by taking advantage of Denka’s unique technologies.
Due to the growing trend toward the miniaturized, lightweight and low-profile electronic devices, ceramics powder suppliers are being called to manufacture products with even smaller particle diameters. Denka offers a lineup of spherical alumina and silica that boast superior sphericity and a great size variety encompassing coarse powder to ultra-fine powder while also engaging in product design aimed at accurately satisfying customer needs. In these ways, we are contributing to the creation of electronic devices with even more superior functions.
In the face of the increasing popularization of EVs and the advancement of autonomous driving systems, there is a growing call for new technologies to control the heat emitted by LiBs and other car electronics components. Such technologies are seen as key to satisfying ever higher performance requirements for car electronics components with regard to various aspects, including capacity, energy efficiency, product life and safety, and are expected to facilitate the creation of more compact and even lighter devices.
Denka’s spherical alumina is widely used in high-molecular thermal materials to improve their thermal conductivity. In particular, THERMALLY CONDUCTIVE SPACER, consisting of a mix of spherical alumina and silicon resin, is serving as an essential material supporting LiB cooling devices. Today, Denka’s technological capabilities in this field, including those backed by unique production techniques associated with the maintenance of sphericity and the mix of particles with different diameters, are attracting growing attention and are expected to help promote the popularization of hybrid vehicles and EVs.
Delivering Even Better Solutions to Satisfy the Needs of the Times
Toyoki Yokoyama
Executive Officer,
Infrastructure & Social Solutions
The Infrastructure & Social Solutions Division is pursuing the specialization of its operations via structural reforms of the commodity businesses, which have supported Denka for 100 years, and the creation of high-value-added products and businesses that yield solutions that meet the needs of the times. The latter pursuit focuses on employing Denka’s unique technologies to address environmental concerns, promote labor saving and deliver people-friendly products, with the aim of contributing to the realization of the United Nations SDGs and other universal goals related to ESG issues. In addition, we are developing a working environment that facilitates employee creativity via work style reforms. By doing so, we are becoming an organization that encourages all employees to take on challenging goals and help them work vibrantly and achieve success.
With the aim of developing biostimulant-related products, we will take full advantage of our solution capabilities backed by Denka’s robust track record in functional fertilizer production spanning 100 years since its founding. Simultaneously, we will create a variety of agricultural solutions associated with farmland diagnostics and cultivation management.
Denka’s humic acid liquid fertilizer is a biostimulant that invigorates the growth of roots and facilitates nutrient absorption, thereby contributing to higher crop quality and larger crop yields. Furthermore, this fertilizer enhances plants’ resilience against abiotic stress. Thanks to these features, the humic acid liquid fertilizer is expected to help resolve global food issues arising from food supply shortages due to population growth and serious crop damage attributable to the impact of global warming and other climate change-related phenomena.
Contributing to Technological Innovation and Social Development by Employing a Variety of Technologies and a Wealth of Know-How
Koki Tabuchi
Managing Executive Officer,
Elastomers & Performance Plastics
The Elastomers & Performance Plastic Division is in charge of three business categories: the elastomer business, which includes our flagship global market-leading chloroprene rubber (CR) operations; the performance plastics business, which boasts highly functional styrene-based products in an array of grades; and the styrene and chemicals business, which centers on styrene monomer and acetyl chemicals and is backed by Denka production facilities that boast the largest capacity in the Kanto area. Currently, the division’s overseas sales ratio is holding stable at over 60%. In addition to our production bases in Japan, we operate overseas plants in the United States and Singapore to meet global market needs. Acutely aware of our mission to support Denka’s largest, flagship business segment in terms of sales and profit, we will strive to maintain stable operations while promoting specialization, with the aim of achieving goals of the Denka Value-Up management plan.
There has been a downturn in macroeconomic trends due to the deceleration of China’s economic growth reflecting U.S.-China trade tension, a looming sense of anxiety about Brexit issues and the overall future outlook of the European economies, and the slowdown of Japan’s economic recovery. Nevertheless, we will remain attentive to signs of changes and agilely take necessary action to accelerate the aforementioned strategies and achieve the goals of the Denka Value-Up management plan.
Having developed CR via the application of unique technologies, Denka was the first in Japan to commercialize this synthetic rubber. Today, the Denka Group boasts the world’s largest CR production capacity. As CR is an excellent oil- and heat-resistant material, it has become sought after for a variety of applications, including automobile parts, construction and civil engineering machinery components, medical gloves and adhesive ingredients. In addition, efforts are also under way to create new elastomer materials via, for example, the combination of CR and precision polymerization technologies.
Evlomer is a new elastomer material created via the combination of elastomer technologies Denka has long accumulated over the course of the manufacture of DENKA Chloroprene and DENKA ER and its sophisticated precision polymerization technologies that have been cultivated in the course of the development of highly functional styrene-based resin. Evolmer boasts superior oil resistance and robust resilience against bending fatigue in dynamic environments. Accordingly, this product is expected to contribute to the advance of automobile technologies aimed at supporting driving safety and lengthen the lifespans of vehicles.
Pursuing Value Creation while Delivering Products Designed to Meet Market Needs
Jinichi Osuga
Executive Officer,
Living & Environment Products
The Living & Environment Products Division will take on the pursuit of new value without insisting on limiting the search to a particular material or field and, to this end, fully take advantage of its strengths in the areas of technology and quality, with the aim of supporting the entire Group in its role as a chemical engineering division. In these ways, we will create and deliver products that satisfy market needs to in-house and external partners. Currently, the division is engaged in a range of operations associated with chemical engineering products aimed at supporting people’s lifestyles and improving living environments. In line with the Denka Value-Up management plan, we will accelerate global expansion via the development of unique products designed to satisfy market needs. At the same time, we will develop and deliver solutions aimed at helping reduce environmental burdens. In these ways, we will create shared value toward resolving issues society is confronting.
In 1951, Denka became the first in Japan to commercialize a vinyl chloride-based insulated adhesive tape via the release of VINI-TAPE. Since then, we have long endeavored to improve our technologies, securing a robust product lineup for automobile bundling tape and electric wiring applications. Looking ahead, we will create tapes with even more superior functions and lighter weight while improving adhesives and other elements to deliver products with even smaller environmental footprints.
The thinnest and lightest tape in the industry, this product is used as an adhesive tape for bundling automobile wire harnesses—essential car components that transmit electronic signals and power—designed for vehicles operating in harsh environments, such as those in cold regions. Denka is the first Japanese company to commercialize a vinyl chloride-based tape of this kind. Building on its accumulated technological capabilities and expertise, Denka is currently striving to meet customer requests for solutions that help reduce the weight of automobile parts while enhancing their safety and reliability in the face of the ever greater popularity of EVs and the emergence of autonomous driving systems.
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