Japanese Chemical Makers Cutting Ethylene Output

Tokyo, March 12 (Jiji Press)–Major Japanese chemical manufacturers have begun reducing ethylene production amid the deteriorating situation in the Middle East. On Thursday, Mitsubishi Chemical Corp. and Asahi Kasei Corp. announced that they have lowered the operational rate at their joint facility in Kurashiki, Okayama Prefecture, western Japan. This is the fourth ethylene production facility in the country to reduce output. Ethylene is a key raw material for various industrial products, including plastics. Prolonged disruptions could affect the production of automobile parts, detergents, clothing and other goods. Currently, Japan has 12 ethylene production facilities. Amid the effective blockade of the Strait of Hormuz, procuring naphtha, a crude oil derivative and ethylene ingredient, may become challenging. Mitsubishi Chemical has already cut production at a facility in Kamisu in the eastern prefecture of Ibaraki, while Mitsui Chemicals Inc. has reduced output at two facilities in Ichihara, Chiba Prefecture, east of Tokyo, and Takaishi in the western prefecture of Osaka. Sumitomo Chemical Co. said Thursday that it may postpone the restart of a production facility undergoing periodic repair. The facility, located in Ichihara, is jointly operated by the company and Maruzen Petrochemical Co., a subsidiary of Cosmo Energy Holdings Co. Idemitsu Kosan Co. has notified its business partners that it may suspend ethylene production at facilities in Ichihara and Shunan, Yamaguchi Prefecture, western Japan. Ethylene production facilities pyrolyze naphtha into basic chemicals, such as ethylene and propylene, which are then processed into plastics and synthetic fiber raw materials and eventually used in plastic bags and food packaging. Japan relies on imports for most of its naphtha. END [Copyright The Jiji Press, Ltd.]