3 Firms to Consolidate Ethylene Production in Western Japan

Tokyo, Jan. 28 (Jiji Press)–Mitsubishi Chemical Corp., Asahi Kasei Corp. and Mitsui Chemicals Inc. have said they will consolidate their ethylene production facilities in western Japan as early as fiscal 2030. Specifically, the ethylene production facility in Kurashiki in the western prefecture of Okayama, which is operated by Mitsubishi Chemical and Asahi Kasei, will end operations. Mitsui Chemicals’ ethylene plant in Takaishi in the western prefecture of Osaka will be jointly run by the three companies, according to an agreement released Tuesday. Ethylene is a basic petrochemical used to make plastics for products such as food packaging. The three companies decided to consolidate operations at a time when the operating rates of their ethylene production facilities are slumping due to a fall in domestic demand and increased output in China. About 100 workers on loan at the facility in Kurashiki will return to their respective parent companies. The future use of the plant site will be considered going forward. The companies are considering continuing ethylene supplies to client firms near the Kurashiki facility from the Osaka plant. Idemitsu Kosan Co. and other Japanese companies are also moving to consolidate their ethylene production facilities. The number of ethylene plants in Japan is expected to fall to eight by around 2030 from 12 at present, according to an industry source. END [Copyright The Jiji Press, Ltd.]