Mitsubishi Chemical Cuts Ethylene Production

Tokyo, March 9 (Jiji Press)–Mitsubishi Chemical Corp. has reduced ethylene output to avoid a production halt due to a lack of supply of raw materials from the Middle East, company officials said on Monday. The Japanese company has been producing ethylene at a reduced rate at its plant in Kamisu, Ibaraki Prefecture, northeast of Tokyo, the officials said. The decision reflected concerns that naphtha, a material for ethylene, could be in short supply amid escalating tensions in the Middle East. Mitsubishi Chemical has already notified its major clients of the reduction in ethylene production. Japanese petrochemical manufacturers have 12 ethylene production facilities in the country that supply ethylene and other basic chemicals for use in a wide variety of products including auto parts and food packaging. Idemitsu Kosan Co. has notified clients that it could suspend operations at ethylene facilities in Chiba Prefecture, east of Tokyo, and Yamaguchi Prefecture, western Japan, if the effective closure of the Strait of Hormuz prolongs. Mitsui Chemicals Inc. is considering increasing naphtha purchases from suppliers other than the Middle East, a company official said. END [Copyright The Jiji Press, Ltd.]