Business OverviewCarbon Black Division123Integrate and optimize North American locationsSecure appropriate margins in the North American market where supply is tight. Also share technology with other locations.Manage the use of feedstock oil, improve productivity, share technology for efficient use of waste heat within the group, and work to reduce overall cost and maximize output.Increase the high value-added products (specialty products) as a percentage of products sold by sharing information on products developed in Japan. Reduce reliance on the commodity market and capture share in high-margin markets.Reduce costs through the efficient use of energy and other meansIncrease the percentage of high value-added productsKey MeasuresT-2021 Key MeasuresBusiness ConditionsManagement Issues• Annual growth of 2-3% expected based on strong tire and automobile production.• Carbon black demand and supply expected to rise mainly in Asia.• 2020 MARPOL Convention (revision of regulations on sulfur content of fuel oil used by ships)• Integration of North American locations with the Group• Continuation of stable earnings-Further yield improvements, and energy- efficient operation-Environmental burden reduction-Increase specialty products as a percent of the totalAcquired North American locations to enter non-Asian markets.To save costs and shift the product mix to include more high-value-added products, we will use technologies from other Group members whenever necessary.Takashi Masaki General Manager of the Carbon Black Division24TOKAI CARBON ANNUAL REPORT 2018
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