——If you were to describe 2023 briefly, what kind of year was it?

President: If I were to describe 2023 briefly, it would definitely be “a year full of ups and downs”.

Director: It’s always full of ups and downs, isn’t it (laughs).
Especially in 2023, the economic situation in China clearly worsened and the Japanese chemical industry struggled, making it very difficult to improve performance. Despite this, we were able to achieve steady growth towards 1 trillion yen, with sales increasing by about 20% from the previous year to approximately 1.2 trillion yen.

President: The reason we were able to increase sales even in a tough situation is because we have built a system within HighChem where we can produce good results in other businesses even if some businesses are struggling in a recession. In particular, the trade business worked hard in fiscal 2023 and led the overall growth.

Director: Also, in the Sustainnovation segment, more than 10 years have passed since we started the C1 Chemical & Catalyst related business, and I feel that we have steadily leveled up as a team. We have established a system where we can tackle recurring issues and troubles with a team that cooperates between Japan and China. And we are starting to get projects at a higher stage. It was a year with many important insights even in difficult times.

——There were various events in 2023, but could you tell us what left an impression on you?

President: The most memorable event in 2023 was that the SEG® plant in Yulin City, Shaanxi Province, which our company licensed and invested in, was able to go into full operation.


The world’s largest SEG® plant with an annual production of 1.8 million tons, which uses synthetic gas derived from coal as a raw material, started operation in 2022, but it was unprecedented in the industry and surprised the market that it was able to produce ethylene glycol exceeding the production capacity in the first year of operation.

Director:  That’s right. Also, in the battery business area, which is a key business towards 1 trillion yen, not only has the execution system been established, but small results have begun to emerge, and this speed is impressive. The Battery Materials Business Department is a new department that started up one year ago, but it is steadily advancing in both research and development and marketing, while being led by the related departments of the Chinese branch. I feel that the seeds sown for the future are beginning to sprout little by little.

——How do you see the macro environment surrounding Japan and China as a prospect for 2024?

Director: Recently, there are concerns about the recovery of the Chinese economy, but I also think that recovery in a short period of time is difficult.

In a single year, unexpected factors and the supply-demand balance of various industry sectors overlap, and it is impossible to predict what changes will occur. However, when viewed in terms of long-term trends, China will no longer be a country that continues to grow dramatically as before.

The industrial structure will also change. Real estate has been developed in anticipation of demand quite a bit, so investment in construction machinery and materials related to this will weaken for a while. For private demand excluding real estate, investment in research and development for trend-type products with higher added value, such as EVs and healthcare, will strengthen from investment in manufacturing equipment for basic component products and OEM assembly lines for overseas orders. As labor costs rise, we will have to create high-value-added products, which is the same trend as seen in Japan.

In addition, private economic standards have risen dramatically over the past 20 years. In the future, domestic demand will be even greater than that of Japan, and will demand a richer quality of life, or QOL, so it is inevitable that investment in high-value-added products and industries will accelerate.
However, even with that, the trend of “greening” will not stop, so investment in low-carbon technology will continue to grow even in heavy and long-term manufacturing industries.


The Chinese economy will also move to the next phase from now on, and it is expected that it will face both the good and bad aspects that Japan has experienced in the past. As HighChem, we want to take advantage of past experiences and not miss the opportunities that lie in this environment.

President: I don’t have high expectations for the Chinese economy itself, but there are a wide range of things that HighChem can do even in a recession. There are many things that are needed and demand does not decrease even in a recession.​

If we can seize such opportunities, we can continue to grow sales by 20% in the future, and realizing a company with a long-term vision of 1 trillion yen is not a dream.

——Could you tell us about your thoughts on HighChem’s globalization?


President:  In 2023, we established a corporation in Hungary in Europe, and this year we are planning to expand our business to India and Saudi Arabia, among others. HighChem’s globalization is steadily progressing.

When considering future prospects, it is significant that we have been able to build a sales platform for basic chemicals in Yulin, which we have been focusing on for several years. This year, we expect to start producing 100,000 tons of DMC, and in the future, a variety of basic chemicals are planned to be produced on this platform. If we can set up a global sales system for basic chemicals with overwhelming cost competitiveness in Yulin, not only in Japan and China but also in Europe, America, India, Southeast Asia, etc., we can expect a great expansion of sales towards 1 trillion yen.

Recently, as a result of diligently, sincerely, and carefully building up our work on difficult issues such as sustainability and environmental response, our attitude and abilities have been evaluated, and we have been receiving more projects from global corporations that are expanding their businesses not only in Japan and China but also all over the world. This trend is also a steady stepping stone towards HighChem’s globalization.

Director: In promoting globalization, it is important to be aware that we should not rely too much on the strengths we have had between Japan and China so far. HighChem certainly has a “chemical” business “between Japan and China” as its foundation and backbone. However, if we rely too much on what we are good at just because we are good at it, we will be left behind by changes in the times and environment, leading to stagnation of the company and business.

Both companies and individuals are the same, but in order for oneself to grow, one must not confuse “utilizing one’s strengths” with “depending on one’s strengths”. We need to promote globalization based on the strengths of Japan and China and lead to further growth.

——You have a long-term vision of becoming a 1 trillion yen company by fiscal 2034. What are your progress goals and direction for fiscal 2024?

Director:A clear 　indicator towards 1 trillion yen is the need to achieve a continuous growth of 22% every year. Of course, I don’t think things will go so well every single year, but for fiscal 2024, the goal is 140 billion yen.

President:  I think there is a possibility of 150 billion yen in 2024.  However, it’s important not only to increase sales but also to increase profits at the same time. If profits do not grow, investment in equipment and human capital will stagnate, and we cannot expect long-term growth of the company.​


Director:  In recent years, the president has been focusing on promoting projects in the huge park in Yulin at the Northern China headquarters. The fact that we have a basis for increasing sales is of great significance in aiming to become a 1 trillion yen company. This is because the global decoupling movement works in our favor.

Basic chemicals are a huge equipment industry and require huge equipment investment, yet the profit margin is slim. The trend of domestic return of important products such as semiconductors and batteries is strengthening worldwide, but they probably won’t want to put money into huge equipment with slim profit margins anymore. In other words, in the field of basic chemicals, it will be a world where cost competitiveness and sales networks matter, and the platform in Yulin has overwhelming cost competitiveness. Therefore, if we can quickly build a reliable sales network around the world, sales will increase with a high degree of certainty.

However, the fact remains that the profit margin of basic chemicals is slim. In order to increase profits, we also need to focus on expanding the handling of high-value-added products.

This requires us to rethink how we invest. We need to shift from the so-called trading company-like investment that focuses on acquiring trading rights, to investment as a “manufacturing function” that can expand to multiple customers, multiple products, and businesses with one investment. increase profits and improve profit margins, we need to increase capital efficiency in investment.

As you know, the Sustainnovation department is working on various things such as apparel and batteries, but in the Tokyo trading department as well, we are divided into chemicals, life sciences, and electronics fields, and each is deepening their understanding and thinking about how to add originality and added value. This is starting to create a very good atmosphere where this trend is also starting to pull others around. The leveling up of each employee will lead HighChem to the next stage.

President: I feel that the reform of employee consciousness is also progressing. Not only buying and selling products, but also how to add greater added value, they are starting to be able to make proposals that consider the other party’s position. As HighChem grows in the future, this growth of our employees is more than reassuring.

Under the mission and vision of “We are the BRIDGE”, let’s provide solid value to society and aim for 1 trillion yen in accordance with All for 1 for All..

Director:  With the advent of AI, not only simple tasks but also barriers between languages and creativity are rapidly disappearing. Currently, AI exists as “software”, and we do not interact with AI unless we go to use it ourselves. However, in the near future, AI will be incorporated into “hardware”, and if that happens, AI support will be everywhere in our daily lives without us being aware of it.

For example, if it is incorporated into hardware such as computers and smartphones, and if you start a web conference, a future will definitely come where you can communicate without discomfort, naturally corrected for differences in culture and nuances, not only language, with people from any country. And in those meetings, you will have support right next to you without having to search for the expertise of the agenda. If so, the day will come sooner or later when the weapons of “language” and “business customs” will no longer work for HighChem.

However, when that day comes, and not only then but also in the future, there are strengths and weapons that will work no matter how much the times and environment change. It is still the human strength of courage to challenge ourselves, patience to persevere, and a heart that tolerate mistakes and failures as a result of positive challenges. These are non-cognitive abilities that cannot be quantified. The corporate culture itself, where each and every employee values such non-cognitive abilities and aims to grow as a human being, will become increasingly strong in the coming era when quantifiable cognitive abilities will be replaced by AI.

Valuing the time of heaven, the advantage of the earth, and the harmony of people, and continuing to challenge ourselves with courage, patience, and tolerance.​
That is exactly what HighChem aims for with “We are the BRIDGE”.​

We live in a turbulent time in terms of both technology and the international situation, but as we continue to experiment with how to incorporate and utilize AI and low-carbon technologies into our existing business, I believe that if each employee strives to grow spiritually as a human being, we can become a trillion-yen company and continue to serve as a bridge between people.

President: As I often say, people cannot become bigger than they wish for themselves. If you look forward, life is exciting. Especially for young people, face forward in tough times and jump into new worlds and new challenges.