Challenge to the change toward TOYO's Leap
President & CEO
Based on the five-year medium-term management plan for the period from fiscal 2021 to fiscal 2025, TOYO is reforming its business portfolio and transforming its profit structure by “Advanced EPC Operation” and “Sustainable Technology and Business Development Strategy” My mission as president in the third year of the Medium-Term Business Plan is to achieve our goals by building on the results of the initiatives already implemented under the plan, and to clarify the direction of TOYO from fiscal 2026 onward.
In response to the issue of climate change, the world is moving very quickly toward the realization of a carbon-neutral society. However, new challenges have emerged at the global level, such as the impact of infectious diseases and regional conflicts on economic and civil activities and the increase in political and economic risks. These challenges are raising the risks and difficulties of projects, given rising construction, materials and equipment costs, slower delivery of materials and equipment, and the demands of large-scale projects. In addition, introducing new technologies to society is a very challenging task. In light of these changes in the operating environment, we believe that the role and necessity of an engineering company that integrates elemental technologies, organizes a wide range of stakeholders, appropriately manages projects, and leads to social implementation will continue to increase in the future.
As the world's population continues to rise and economic growth continues, existing business domains such as petroleum, gas, chemicals, and fertilizers will remain one of the pillars of TOYO's business from fiscal 2026 onward, ahead of the current medium-term plan.
In addition, the new business domains of fuel ammonia, SAF, and synthetic fuels are attracting attention as important solutions for realizing carbon neutrality, and we intend to expand these businesses as our second pillar. These are fields in which TOYO can harness its extensive experience and its proprietary and collaborative technologies, such as g-Methanol® and FT Synthesis.
The third pillar includes several candidates, such as functional chemicals, recycling-oriented, low-environmental-impact plants, and pharmaceuticals. Here, we intend to allocate resources appropriately after determining which business fields are promising as we advance our medium-term plan towards its fiscal 2025 conclusion.
Avoiding a bias towards Engineering, Procurement and Construction (EPC) business, we have already set and announced a target for 50％ of gross profit from non-EPC by 2030. Non-EPC business models for this purpose include licensing, GHG reduction consulting, and customer support services. These are all very promising fields and are key to TOYO's future development and growth.
Toyo's mission : Engineering for Sustainable Growth of the Global Community. remains unchanged as our basic philosophy. We will achieve this basic philosophy by offering high value-added services through the provision of technical proposals to customers based on the technological capabilities and expertise we have cultivated over the years and through a commitment to business transparency. To strengthen the TOYO Group’s diverse global talent pool, which underlies these efforts, we will strive to attract and develop outstanding human resources, including through career recruitment, and to effectively deploy them. We aim to create an organization that will continue to learn and that creates a pleasant working environment, and to make each and every one of us a professional who can support our customers. As a result, we aspire to become a company that customers rely on when they face difficulties. We are keenly aware of the importance of creating Toyo's future through efforts to achieve a sustainability that harmonizes high standards of living with the environment, and we are committed to building even better societies and to TOYO's own transformation and sustainable growth.