Mitsui Chemicals Begins Ethylene Production Cuts

Tokyo, March 10 (Jiji Press)–Mitsui Chemicals Inc. has begun cutting ethylene production in anticipation of potential raw material supply shortages amid rising tensions in the Middle East, company officials said Tuesday. The Japanese company is now operating an ethylene plant in Chiba Prefecture, east of Tokyo, and another in Osaka Prefecture, western Japan, at reduced rates. Some customers have already been notified of the cuts, a company official said. Ethylene is a key raw material for a variety of industrial products, including synthetic fibers and plastic food packaging. Japan relies heavily on imports from the Middle East for naphtha, the primary feedstock for ethylene production. The effective closure of the Strait of Hormuz has forced Japanese petrochemical companies to scramble to cope with an expected drop in naphtha supply. On Friday, Mitsubishi Chemical Corp. began lowering ethylene production at its plant in Kamisu, Ibaraki Prefecture, northeast of Tokyo. Idemitsu Kosan Co. has informed its clients that it may halt production at its ethylene facilities in Chiba and Yamaguchi Prefecture, western Japan. END [Copyright The Jiji Press, Ltd.]