The world economy has not yet shown any clear sign of recovery in the aftermath of the financial crisis and resulting economic stagnancy in the euro zone; as well as the deceleration of growth in emerging economies, such as China and India.
Japan, which is in the process of recovering from the Great East Japan Earthquake, is also continuing to face economic stagnation, influenced by the sluggish world economy.
Against this backdrop, we cannot be optimistic about the business environment surrounding Showa Denko.
In fact, in addition to extensive appreciation of the yen and increases in the cost of electricity, we are facing structural changes such as decreased international competitiveness of Japanese industries as a whole, which previously held a competitive advantage over international competitors.
Under these circumstances, Showa Denko has been implementing its medium-term business plan PEGASUS to soar to new heights of growth with the company's two“ wings” --HD media and graphite electrode businesses.
This year, in response to the dramatically changing business environment, we regard the redesign of our existing businesses as one of the top priorities of business management.
Also, we will continue to implement PEGASUS's basic strategies, with the two wings continuing to drive the growth of the company.
January 1, 2013
Evolving into a Company that Creates Added Value
President and CEO