3 Firms to Consolidate Ethylene Production in Western Japan

Tokyo, Jan. 28 (Jiji Press)--Mitsubishi Chemical Corp., Asahi Kasei Corp. and Mitsui Chemicals Inc. have said they will consolidate their ethylene production facilities in western Japan as early as fiscal 2030.

Specifically, the ethylene production facility in Kurashiki in the western prefecture of Okayama, which is operated by Mitsubishi Chemical and Asahi Kasei, will end operations.

Mitsui Chemicals' ethylene plant in Takaishi in the western prefecture of Osaka will be jointly run by the three companies, according to an agreement released Tuesday.

Ethylene is a basic petrochemical used to make plastics for products such as food packaging.

The three companies decided to consolidate operations at a time when the operating rates of their ethylene production facilities are slumping due to a fall in domestic demand and increased output in China.

[Copyright The Jiji Press, Ltd.]