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Nippon Shokubai cuts profit target for FY20

Chinese competition erodes key disposable-diaper ops

OSAKA -- Industrial chemical maker Nippon Shokubai will lower its pretax profit target for fiscal 2020 by about 20% to around 40 billion yen ($340 million) due to harsh price competition in its key business, President Masanori Ikeda told The Nikkei.

The Osaka-based company had aimed in 2014 for a 50 billion-yen profit on sales of 500 billion yen for the year ending March 2021, counting on its mainstay disposable-diaper materials business to drive the growth. But tough competition from the Chinese is prompting Nippon Shobukai to scale back its ambitions. The revised sales target for fiscal 2020 is 400 billion yen. "The pretax profit margin target of 10% will remain unchanged," Ikeda said.

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