Leverage the Comprehensive Strengths on Both Offense and Defense in
Becoming a Global Corporation with Unique Excellence
President and CEO
I want to express my deepest thanks to all our shareholders for your understanding and support for the business activities of the Terumo Group.
To meet rapidly increasing global demand, we consider strengthening our global operations to be a top management priority, and we are working to expand infrastructure and optimize our production sites. While maintaining "mother production factories," which have both production and development functions, in developed nations such as Japan and U.S. where we have business headquarters, we are lowering production costs by shifting labor-intensive factories to Asia and Latin Americas. Further, we have commenced studies toward local production in potentially enormous markets such as China and India, in line with the trend toward domestically made products.
I believe deploying regional strategies in more detail than ever before will be the key to realizing growth potential. As for an aspect of "regional strategies" in China, the strategic business alliance we formed in 2012 with China's leading medical device provider, Wego, has begun to produce concrete results. The joint venture company has obtained a regulatory approval for peritoneal dialysis fluid, with sales scheduled to commence within the fiscal year ending March 2019. With Terumo’s technology and sales expertise developed in Japan, we are committed to contributing to dialysis healthcare in China going forward.
Meantime, we have begun Project "Scrum," a group-wide effort to raise the growth potential of the market in Japan. I believe the key to domestic growth will be utilization of the comprehensive strengths of the Terumo Group on both "offense" and "defense." Medical front in Japan has started seeing "an era of the 100-year lifespan," and new needs have been constantly emerging there. We will tie those needs to business opportunities and provide higher value added services and products.
Utilizing human resources on a global level is another important theme. Currently, the Terumo Group has over 23,000 associates, and I’ve seen an increasing number of opportunities to utilize our diverse human resources on a global scale. Starting this fiscal year, Terumo has established a CHRO*, who will oversee worldwide human resource strategies, for the first time. Terumo will take on the challenge of going beyond the frame of regions and organizations to proactively leverage global talent, and further revitalize organizations. We ask for your continued understanding and support in this endeavor.
Chief Human Resource Officer