Idemitsu Kosan and Mitsui Chemicals have reached an agreement to consolidate their Chiba ethylene complexes by July 2027 to optimize production and enhance competitiveness amid declining domestic demand.

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Idemitsu Kosan Co., Ltd. and Mitsui Chemicals, Inc. have established a limited liability partnership named Chiba Chemicals Manufacturing (CCM) since 2010, focusing on the joint operation of ethylene production facilities in Chiba, Japan. This collaboration has aimed to enhance production efficiency; however, the current landscape in the petrochemical industry necessitates a strategic consolidation of their operations.

The Chiba ethylene complexes, which have a combined production capacity of 920,000 tons per year, encounter increasing pressure due to emerging petrochemical complexes elsewhere, particularly in China, alongside a decline in domestic demand for ethylene. In response, Idemitsu and Mitsui have agreed to consolidate their facilities at Mitsui's site by July 2027.

Industry Overview in Japan

The petrochemical industry in Japan has faced significant challenges in recent years. The country’s traditional stronghold in the sector is being threatened by an influx of larger and more advance