Toward a New Domain of “Co-Creation”

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Toward a New Domain of “Co-Creation” Investor Relations Director and SEO Yoshitaka Ogata on “TOYO’s Strategy for Product and Technology Development” Toward a New Domain of “Co-Creation” ✺ TECTEC In-depthIn-depth Four-Company Joint Venture Receives Contract for � World’s Largest Gas Processing Plant in Iran ✺ TECTEC In-depthIn-depth Joint Contract Received with Chiyoda Corporation for � Largest-in-the-World Sakhalin À LNG Plant ✺ ProjectProject Moving-onMoving-on Contract Received from Wako Pure Chemicals Industries for � Multi-Purpose Bulk Pharmaceuticals Factory INVESTOR RELATIONS Director and SEO Yoshitaka Ogata on “TOYO’s Strategy for Product and Technology Development” Toyo Engineering Corporation Director and Senior Executive Officer / Chief Technical Officer Yoshitaka Ogata Toward a New Domain of “Co-Creation” TOYO’s Strategy for Product and Technology Development Accountability In this issue’s Investor Relations section, we focus on product and technology development, a driving force for an engineering company. How is TOYO responding to a constantly changing market environment while preparing for the future to become a “Co-Creative Total Solution Provider”, as defined in the new Mid- Term Corporate Management Plan? We asked the views of Director and SEO Yoshitaka Ogata, who is also our Chief Technical Officer. TEC COMMUNICATIONS Taking Advantage of project execution and comprehen- cultivated through engineering Comprehensive Engineering sive engineering under a business support for the manufacturing Capabilities: The Basic Concept strategy in close collaboration with industry. Our total lifecycle solu- of Product and Technology trading companies and financiers. tions, covering the range from Development In other words, our product and R&D Engineering through opera- technology development strategy tion and maintenance (O&M), is First of all, please tell us your demands that we enhance our also a domain that can be thought Q basic concept of product and ability to respond to our clients’ of as an extension of our ordinary technology development. needs with two pillars: product EPC business, which we will development and the development further expand in the future. n 1961, TOYO split off from of engineering and business opera- Included in technology develop- I Toyo Koatsu Industries Inc. tion technology. Our product and ment for engineering and business (currently Mitsui Chemicals Inc.), technology development strategy, operation are advanced analysis one of the leading chemical compa- in close cooperation with our sales and simulation technologies; nies at the time. From the begin- activity, will be focused on specific advanced technologies related to ning, TOYO’s core technologies areas in view of the market envi- the lifecycle of a plant, such as were for process technology of ronment and further reinforced. resource and energy savings, relia- chemical products. Since then, we bility, diagnostics and improve- have developed as a plant engi- Would you say that the tech- ment, environmental compliance neering company with two distinct Q nologies cultivated through and maintenance; and advanced features, that of licenser and con- engineering, procurement and con- IT. Together with our project tractor, leveraging our strengths in struction (EPC), adapted for this market management capabilities, our manufacturing and process tech- environment, expanded in range and comprehensive engineering nologies. evolved, are resulting in the deploy- abilities accumulated from these With these special characteristics, ment of a completely new business? technologies form the core compe- we have always concentrated on tence of the Company. You might product and technology develop- or the general trend, that’s say that our ability to provide ment. However, to respond to F right. e-Solutions Business, “Co-Creative Total Solutions”, today’s rapidly changing market which is one of our new business which differentiate TOYO from and diversified client needs, it is deployments, is based on the infor- the rest, is derived from this sub- more important than ever to mation technology (IT) originally stantial technological base. strengthen alliances with our clients and to integrate the products and services. We recognize that we must perceive the needs of our clients across a broad range, and develop the products and tech- nologies that can satisfy their demands in a flexible manner. Our corporate goal, to become a “Co-Creative Total Solution Provider” is our corporate philoso- phy based on that background. Under this basic recognition, in order to deal with this rapidly changing market as an order initiated industry, we must take advantage of our capabilities for 1 2 INVESTOR RELATIONS Deploying a Versatile Strategy: TOYO’s specialties. Our technolog- Hydro-Thermal Cracking (HTC) Process Product and Technological ical knowledge in this field gives us Fields in Focus an advantage over others. As for synthesis gas generation technolo- Specifically, on which product gy, the key technology in this clean Q and technological fields do you energy field, our proprietary tech- plan to focus? nologies such as ISOP highly active steam reforming catalyst and ne of our most important MRF-Z® Reactor for highly O missions as an engineering efficient methanol synthesis will institute affiliated with the company is to contribute to pro- become indispensable, especially in Mexican national oil company viding the solutions for a multi- respect to manufacture of hydrogen PEMEX. Like coal, heavy oil is a tude of human and social prob- for the hydrogen-powered society resource that will once again be at lems. In particular, the Company is of the future. On the other hand, the center of attention due to the now focusing on four domains: depletion of energy, the environment, food and natural gas MRF-Z® Reactor at No.2 Methanol Plant in water (population problem related SINOPEC Sichuan Vinylon Works resources in the fields) and IT. future, and this is Gas Inlet First, in the energy field, the another area in key word is clean energy. In this Center Pipe which we will field, we prepare for coming high strive for the Cooling Tube demands for clean energy and long term. Aside expansion of its infrastructure, and Catalyst from these, in the we are focusing our efforts on Steam & Boiler upstream of oil Water Mixture developing the technology to facili- Outlet and gas develop- Boiler tate the construction of large-scale Water Inlet ment, we are par- Gas Outlet plants. As for alternative clean ticipating in the energy technology, the series of modernization required process technologies, Liquefied Natural Gas (LNG) tech- and maintenance project of KJO such as hydrogen, methanol, nology fundamentally depends (Al-Khafji Joint Operations) with dimethyl ether (DME) and gas-to- largely on the owner’s technology, technical service as a client-side liquid (GTL), are an extension of and everyone at TOYO is striving alliance partner, where we take synthesis gas generation technolo- toward the successful completion part in crude oil exploitation. Even gy, which is of course one of of the Sakhalin II LNG project as a the oil and gas development field first priority. Our Hydro-Thermal can be included as a new business Cracking (HTC) process, a field in which, from the view of residue upgrading technolo- the integration of products and gy, is currently under services, TOYO can demonstrate its joint development engineering technology capability. with a research In the environmental field, we are currently focusing on develop- ment of products and technologies related to EPC business in coopera- tion with Environmental Engineering Corporation (a joint Highly Active Steam Reforming Catalyst G90-ISOP TEC COMMUNICATIONS venture of Ebara Corporation, only license owner also pro- Chiyoda Corporation and Mitsui & viding urea granulation Co., Ltd.) in the overseas market, (large size urea product) and with our affiliated company technology, for which Tecno Frontier Co., Ltd. in the demand has recently been domestic market. Although this is growing. Through collabo- a rather difficult field to promote ration with the Indonesian as a business enterprise in the pres- leading fertilizer company ent circumstances, initiatives on PT Pupuk Sriwidjaja environmental issues will surely be (PUSRI), our proprietary an indispensable domain for future ACES urea process has been societies. We need to take into improved and developed into the account a number of factors—for ACES 21® urea process, which is Besides the four fields you example, the integration of the incorporated in the plants under con- Q just mentioned, what other energy field, or the need for envi- struction in China and Indonesia. products and technologies are ronmental treatment facilities The 2,460t/d plant in China is sched- symbolic of TOYO? accompanying each individual uled to commence operations in the plant, as well as participation into 1st quarter of 2004. We are further n terms of improvement and Clean Development Mechanism polishing this ACES 21® process and I expansion of the Company’s (CDM) including emissions trad- expect it to be one of the leading proprietary technology, there are ing—that will lead to the formation products for the Company’s license plenty of others. For example, in of more effective product and tech- business. From now on, we will also the industrial plant field we nology development. participate in indispensable fields for have the XY Router® for multi- The food and water ( popula- social infrastructure, such as water purpose plants, which
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