News
Mitsubishi Chemical to reduce ethylene production capacity
Monday, March 9, 2026 at 04:40 PM
Mitsubishi Chemical is reducing its production capacity for ethylene, a primary chemical feedstock used in the manufacturing of various plastic and resin components.
Context
The Mitsubishi Chemical Group has announced a reduction in ethylene production capacity, citing supply chain disruptions stemming from the Iran war which has severely hampered the procurement of naphtha feedstock. This move follows a broader strategic shift by Japanese chemical leaders to optimize aging infrastructure and meet environmental targets. In September 2025, Mitsubishi Chemical, Asahi Kasei, and Mitsui Chemicals established a limited liability partnership to manage ethylene manufacturing in western Japan, seeking to stabilize a volatile market.
Under this collaborative agreement, the companies will consolidate operations at the Osaka Petrochemical Industries facility while decommissioning the Asahi Kasei Mitsubishi Chemical Ethylene plant in Mizushima by fiscal 2030. This restructuring aims to balance domestic supply with declining demand and facilitate a transition to decarbonized basic chemicals produced from bioethanol, with joint commercial production targeted for fiscal 2034. These efforts are supported by METI's program for energy conversion in hard-to-abate industries.
Sources (12)
Asahi Kasei, Mitsui Chemicals, and Mitsubishi Chemical establish a limited liability partnership for ethylene manufacturing facilities in western Japan | News release | MITSUI CHEMICALS, INC. Mitsubishi Chemical cuts ethylene output due to possible supply issues - The Japan Times Mitsubishi Chemical cuts ethylene output as Iran war hits naphtha ...Japan's Mitsubishi Chemical slows ethylene production | Latest Market NewsAsahi Kasei, Mitsui Chemicals, and Mitsubishi Chemical enter basic agreement to promote decarbonization of ethylene production in western Japan | 2025 | News | Asahi KaseiEthylene | Products | Mitsubishi Chemical Corporation[PDF] Mitsubishi Chemical Group Business Strategy Briefing 2025 Q&A (Summary)Ethylene - CK Supply
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