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SDK to Change Organization under New Business Plan

November 25, 2005

Effective January 4, 2006, Showa Denko K.K. (SDK) will carry out organizational changes to ensure smooth implementation of the new medium-term consolidated business plan that will start from the beginning of next year.

Under the new organization, SDK aims to optimize the setup of respective business sectors and reform staff functions at the head office to achieve strategic goals and better control risks. For the purpose of accelerating the growth of new businesses and developing new technologies, respective roles of the Technology Headquarters and business sectors are clarified further.

The existing five business sectors are to be maintained to ensure continued increases in profit and substantial improvement in financial strength, with respective business divisions bearing clear responsibilities for securing profit.

1. Changes in staff functions at the head office

The Corporate Relations Center, the Business Support Center, and respective groups under the two centers are to be disbanded. Instead, Human Resources, IR & PR, General Affairs, Legal, Accounting, Finance, Information Systems, and Purchasing offices will be established under the direct control of President & CEO.

In the Technology Headquarters, meanwhile, existing departments are to be reorganized as Corporate Technical, Production Technology, Environment & Safety, Quality Assurance, and Intellectual Property offices. A Strategic Marketing Center will be created under the Corporate Technical Office while the existing Electricity Center is to be renamed Energy & Electricity Center.

2. Changes in respective business sectors

  • 1)In the Petrochemicals Sector, the Oita Production & Technology Control Department will be abolished while Production, Technology Development, and Engineering departments and Environment & Safety Office will be created directly under the Oita Complex. The Production & Technology Control Department and Regional Office at Tokuyama will be merged into the new Tokuyama Plant.
  • 2)The Inorganic Materials Sector will be renamed Inorganics Sector. The Carbons & Metallic Materials Division will also be renamed Carbons Division. The production & technology control departments and regional offices at Yokohama, Shiojiri and Omachi will be merged respectively into the new Yokohama, Shiojiri and Omachi plants.
  • 3)In the Aluminum Sector, an Aluminum Can Division will be created. The existing Aluminum Can Marketing Division will be renamed Marketing Department and put under the control of the newly created Aluminum Can Division.
  • 4)In the Electronics Sector, an Electronics Marketing Division will be created to replace the existing Marketing Department under the Electronics Materials Division. An Optical Device Division will also be created. At the Chichibu site, the existing Production & Technology Control, Quality Assurance, and Development departments and Regional Office will be merged into the new Chichibu Plant.

Attachment : New organization chart( GIF 36KB )