Strengthen Procurement for Green Chemistry

Takasago International Corporation announces that it has completed an agreement to purchase some shares of LAWTER B.V. and signed with LAWTER B.V. parent company, Harima Chemicals Group, regarding the agreement between shareholders.

The agreements shall strengthen procurement at Takasago, specifically of the raw material for aroma chemicals including -Menthol which are manufactured by Takasago's core technology, "Green Chemistry".

Pine Chemicals, chemicals with pine tree origins, have been utilized for various products such as resin, electronic materials, and other chemicals. In terms of aroma chemicals, Sulfate Turpentine and Gum Turpentine are important raw materials. However, the demand of Gum Rosin, a co-product with Gum Turpentine, has been decreasing in recent years, causing unstable availability and fluctuating prices of Gum Turpentine.

On the other hand, as people are paying more attention to transparency throughout the supply chain backward integration is gaining more value. Regarding Pine Chemicals, global initiatives such as Carbon Disclosure Project (CDP Forest started in 2013) and SDGs Goal 15 ("sustainably manage forests") require specific action for responsible procurement.

The primary raw material and source for operation at LAWTER is Crude Sulfate Turpentine (CST) ex paper mill companies. It is considered that CST has less fluctuation in availability and price. Also, it has better traceability. By tightening this partnership, Takasago aims to improve and stabilize procurement conditions for the key raw material, which shall support not only Aroma Ingredients business but also Flavors, Fragrances and Fine Chemicals. In mid-long term, Takasago shall also leverage the foundation for further development of businesses.

With a corporate philosophy "Contributing to Society through Technology", Takasago has been leading the flavors and fragrances industry since 1920.

To supply dependable products consistently, the strategic corporate responsible sourcing program "TaSuKI" (たすき Takasago Global Procurement Sustainability Key Initiatives) shall play important role. TaSuKI aims at restoring full control over supply and CSR compliance by direct sourcing & manufacturing presence in countries of origin (backward integration) as well as social & environmental programs to support local communities. (More information on TaSuKI is available in Takasago's web sites.)