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Message from the President

Kazuo Maeda
President & CEOKazuo Maeda

MEC is a chemical manufacturer dedicated to R&D. Our main business is the development, manufacturing, and sales of specialized industrial chemicals. Our products enable improvements in the functionality and production efficiency of electronic substrates and components that support the expansive electronics industry, ranging from supporting the arrival of the age of IoT (Internet of Things) to the commercialization of self-driving cars. Today, we continue to expand our operations globally as we strive to meet the needs of electronics markets around the world.

At MEC, our R&D and manufacturing operations are centered on three core technologies.

1.Metal surface treatment and molecular bonding to improve resin-to-metal bonding;
2.Micro patterning for displays, semiconductor packages, and electronic component modules;
3.Diverse surface etching techniques for metals such as nickel and aluminum, and material bonding technology.

MEC is improving its R&D and marketing capabilities with the aim of expanding the applicable fields for these technologies and to develop and foster the technology of the future that will be required by society.

MEC has established production subsidiaries in Taiwan, China, and Europe (Suzhou and Zhuhai in China, and Belgium in Europe). Each company has a fully autonomous management structure for overseeing production, sales, and other operations. These subsidiaries provide a variety of technical services to meet the needs of local customers in each region. Our Japanese headquarters leads research and technology development that incorporates the needs of local customers. The MEC Group has developed a global network. In Asia, the abovementioned three subsidiaries cover the markets of Taiwan and China while currently our Japanese headquarters covers Korea, Southeast Asia, and the Japan domestic market. Our European subsidiary and Japanese headquarters collaborate to cover Europe and America, markets that are also important as information distribution sources.And to established a subsidiary company in Thailand in May 2017 and are preparing for operation in 2019.

The electronics industry saw a decline in personal computer and tablet PC production and a slowdown in smartphone sales that had previously maintained a strong rate of growth. At the same time, markets related to the Internet of Things (IoT) have seen rapid growth in recent years, resulting in increasing demand for devices and servers for the accumulation and analysis of big data as well as various sensors. The same trends seen in the electronics industry were also evident in the electronic substrate industry.

We are facing a major turning point for the emergence of a new society. This view is based on the advancing use of car electronics and the resulting push towards the commercialization of self-driving cars, and the development of numerous types of wearable terminals. In the flat screen TV sector, we now see a clear path towards 8K, which has the potential to revolutionize various fields due to its high performance, as well as the development of various other types of displays. Furthermore, expectations are growing towards the accelerated development of artificial intelligence and robotic engineering.

Embracing the conditions of the current environment, MEC will continue to advance our creative technology development capabilities. We will work to accurately identify needs discovered throughout the various processes of innovation and create seeds that will contribute to commercial applications for innovative technology. At the same time, we will offer high-quality products and technology services to the electronics industry and related industries. We remain committed to ascertaining global trends and generating latent demand in business segments applicable to our core technologies.

In the chemicals business, our CZ Series of adhesion improving agents is in widespread use for package substrates fitted onto semiconductors amid increased demand for memory and data center applications, as well as for advanced driver-assistance systems (ADAS) that require great reliability when installed in automobiles. Our EXE Series, meanwhile, has captured a large share of the market for chemicals used to form micropatterns, the process enabling the production of highly dense IC packages found mainly in flat screen TVs.To respond to increasing speeds of information communications, our adhesion enhancement agents FlatBOND Series was selected for use in in high-speed communications applications. This agent is unique for achieving a molecular bond without causing surface roughening. And use of our AMALPHA product – technology for directly bonding metal and resin –it is used in the body production process for certain mobile phones.

MEC will launch new products and improve on existing products for the backbone internet infrastructure for the highly promising IoT and the cars and displays that will connect to the IoT, and for smartphones, a segment that will continue to demand the highly-efficient mass production of high-quality products. This will enable us to conduct operations based on a medium- to long-term growth strategy that is not influenced by short-term market sentiment. MEC is also dedicated to applying a diverse range of values and perspectives from talented human resources, both internal and external and regardless of gender, as we work to make even greater contributions to society and increase our corporate value.

At MEC, we have worked proactively to comply with the Corporate Governance Code enacted on June 1, 2015. The ESG committee took a leading role in advancing measures in line with the principles of the code, including for areas of compliance already fulfilled. Moving forward, we will work towards further improvements.
Furthermore, we received approval at the 47th Regular General Meeting of Shareholders held on June 21, 2016 to establish an Audit and Supervisory Board.

Lastly, in 2017 the Amagasaki Headquarters that integrates a research building, manufacturing plant, sales office and head office commenced operations. This location will further strengthen our ability to drive our business forward by: improving customer service with accelerated development and steadier product quality; raising employee satisfaction by looking out for the environment and their safety; and further expanding our core technologies with the imagination and creativity of researchers in a new working environment.

Each member of the MEC Group will put forth every effort to remain worthy of your support and to meet your expectations.We ask for your continued understanding and support.

August 2018