How do we develop new technologies and businesses and make them profitable?
Creating five new business areas backed by TOYO's technologies, knowledge, and experience “Sustainable Technology and Business Development” Strategy
"Sustainable Technology and Business Development" strategy aims to resolve the two materialities of "Aiming to realize an environmentally-friendly society" and "Enriching people's lives" Focus on five key business areas backed by TOYO's technological knowledge and experience.
- Recycling and low-environmental-impact
- CO2utilization, Energy conservation
- Next-generation energy
- Resources and energy security
- Quality of life
We will collaborate with customers and partners from the conception stage to create a new business model beyond EPC.
Pursuing the B2B2X model through co-creation with customers and partners
In Japan, in response to Prime Minister Kan's Declaration on Achieving Carbon Neutral 2050 on October 25, 2020, there has been a wave of structural change in the social system toward energy transition. The social implementation of new technologies cannot be realized through the business strategies of individual companies. Collaboration with industry, government, and academia as well as customers and partners is a prerequisite. In the "Sustainable Technology and Business Development" strategy, in order to create a business model in which TOYO can possess important technological knowledge and play an irreplaceable role, we will pursue expansion of new business areas suitable for national policies by broadening the framework of B2B with customers and partners, to further build a business community with partners, consumers, governments and local governments.
How will the EPC business be strengthened?
Expansion of TOYO's strengths in group operations by DXoT
- "Advanced EPC Operation” Strategy
- As of FY2020, the profits amount of the group companies are steadily increasing. Further acceleration will be made with the goal of 1.5 times (compared to FY2010) by FY2025.
- Operations will be evolved to increase productivity by six times, by multiplying 3 times EPC gross profit by half of man-hours. Since the man-hours of EPC are reduced, human resources will afford to be shifted to assignment for developing sustainable technologies and businesses, leading to an increase in gross profit.
- As a result of advanced group operations and DXoT, we will not only improve the profit ratio of TOYO, but also contribute to optimizing the amount of investment by customers.
EPC project operations to be centralized by group companies on behalf of Toyo-Japan
- further advance group operations
The percentage of consolidated gross profit accounted for by group companies own projects and collaborative projects among group companies was approximately 30%. By fiscal 2025, we aim to increase the gross profit composition of group companies to 45%. Toyo-Japan, on the other hand, specializes in the roles of the group's control tower and high-level projects. In addition to responding steadily to the needs of each local market on a stand-alone basis, each company will expand its own areas of expertise and fulfill its role within the group. For example, Toyo-India will become a core for EPC, Toyo-Korea will become a core for polymers, and IKPT will become a core for power generation Engineering.
DXoT has begun full-fledged efforts since FY2019 and is steadily beginning to produce results
- Outline of the roadmap of DXoT toward the FY2025 target
TOYO began full-scale implementation of DXoT in FY2019 and has begun to produce some of results gradually. In FY2020, under the theme of “Efficiency improvement”, we began applying the system to actual EPC projects. We aim to achieve “High-value-added” in FY2021-2022, and to realize "Digital Centaurs" which is combination of the digital technologies complimented what only human beings can do from FY2023 onward, and we are proceeding to increase the productivity of EPC operations by six times by FY2025.