Sumitomo Chemical’s Strategic Shift: A 30% Cut in Polarizer Production to Boost Profitability

Sumitomo Chemical stands as a pivotal player in the global chemical arena. The company, making headlines recently, unveiled a significant strategic shift. By this fall, it plans a substantial reduction in its optical filter production, used in LCD displays. The goal? To elevate overall profitability through streamlined operations and an optimized business structure. This decision marks a critical response to the evolving market and internal operational hurdles.
At the heart of Sumitomo Chemical's challenges is a downturn in its key petrochemical sector, precipitating a dip in the group's collective performance. Addressing this, the company has laid out a roadmap of around 30 measures, spanning two years until March 2025. Of these, roughly 10 are slated for completion by March 2024, targeting a swift financial turnaround.

In a strategic withdrawal, the company is set to partially close a color filter plant in South Korea by this March's end. Concurrently, Sumitomo Chemical is navigating a tough fiscal path, bracing for its first net loss in 11 years - a projected 95 billion yen by this fiscal year-end. The expected core operating loss, though lower at 70 billion yen compared to last year's 92.8 billion yen profit, underscores the financial strain.
Sumitomo Chemical, through these strategic recalibrations, showcases its agility in adapting to market flux and its unwavering commitment to long-term growth. These adjustments, while tackling immediate challenges, also lay the groundwork for the company's sustained progress.

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