Japan Petrochemical Industry Moving Ahead with Realignment

Tokyo, Jan. 9 (Jiji Press)--Japan's petrochemical industry is moving ahead with realignment, pressured by the country's declining population and China's overproduction.

The industry involves complicated supply chains, including production of ethylene, plastics, synthetic rubber, and fabric materials. This has made it difficult to streamline equipment.

However, the operational rate for ethylene production facilities in Japan has remained below the boom-or-bust threshold of 90 pct for 40 months in a row since August 2022, according to the Japan Petrochemical Industry Association.

In February 2025, Eneos Holdings Inc. began considering halting a unit of its ethylene production equipment at its Kawasaki oil refinery in Kanagawa Prefecture, south of Tokyo.

In August that year, Asahi Kasei Corp., Mitsubishi Chemical Corp. and Mitsui Chemicals Inc. formed a limited liability partnership to consolidate their facilities in western Japan.

[Copyright The Jiji Press, Ltd.]