Mitsubishi Chemical’s first foreign chief vowed to reduce the broad group

Mitsubishi Chemical will ease its extensive business, which includes more than 530 subsidiaries, with its first CEO outside of Japan facing “sacred cows” to survive in the era of clean energy.

Jean-Marc Gilson, 57-year-old Belgian who took power in April told the Financial Times that it would conduct an aggressive asset study to return the largest chemical company in Japan to profitability as a result of the winds caused by the Covid-19 pandemic.

The surprise appointment of a foreign leader has sparked excitement among the private equity industry and other investors, who hope the 88-year-old team will continue. Hitachi’s footsteps, Takeda Pharmaceutical Company and other Japanese groups that have sold Japanese businesses to invest in more promising futures.

The group’s business ranges from petrochemicals and industrial gases to the healthcare sector. It offers industries that make automobiles, steels, semiconductors and LCD screens.

“There will be no sacred cow,” said Gilson, who was previously head of French components at Roquette. “So if a business isn’t our strength, or the business isn’t in a growth industry, or we can’t solve the problem of carbon neutral, I think we’re going to have to ask ourselves tough questions.”

Gilson is expected to connect Mitsubishi Chemical with Covid-19 at an annual loss of about $ 48 billion ($ 442 billion) and immediately raise the share price, which fell 24 percent last year. But an even bigger task is to move away from petrochemical companies and other high-energy volatile businesses to more profitable sites with a lower carbon footprint.

“In the face of these [carbon neutrality] challenges, the main priority is to position the company for growth, “he said.” If we don’t do it, it’s really an existential threat to the company. ”

Although he did not specify the businesses to be sold, Gilson said the company will continue to address the demands generated by semiconductor materials and clean energy needs such as connectivity and hydrogen. Another area of ​​focus will be lightweight and durable materials for use in electric vehicles.

“People know what to do. We have to get out, settle down and then move on and move on. It won’t take him two years. It would probably take a few months to see clearly what needs to be done, ”he added.

Before becoming head of Roquette in 2014, Gilson spent two decades at Dow Corning, including five years in Japan.

Leading foreign executives are relatively rare in Japan and have a mixed history. Gilson is the first foreigner appointed to run a Japanese company since Carlos Ghosn, a former Nissan president, was arrested in 2018 on charges of financial conduct, and he denies it.

Gilson said he sought advice from Glenn Fredrickson, the only non-Japanese director, at Mitsubishi Chemical’s management, to better understand the company’s internal relations before moving from California to Tokyo in March.

Gilson said he was not worried about leading what he called a “pure Japanese company,” and noted improvements in the government in recent years, which have led to the creation of a 12-member board that is not a five-member board.

“My job would have been much harder if this kind of governance evolution hadn’t happened,” he added.