Idemitsu Kosan and Mitsui Chemicals plan to close Chiba ethylene plant

Japanese refiners Idemitsu Kosan Corp and Mitsui Chemicals Corp have agreed to start joint deliberations on optimizing production by consolidating the Chiba ethylene plant, the companies said in a statement.

The two companies will consider closing Idemitsu's Chiba ethylene plant in fiscal 2027 to consolidate production at Mitsui Chemicals' plant. The new business will be operated by a limited liability partnership or joint venture.

"Japanese ethylene plants continue to be forced to operate at low speeds due to the construction of large new petrochemical plants, mainly in China, and reduced domestic ethylene demand," the statement said.

"Idemitsu and Mitsui have now agreed to start considering optimizing production through the integration of their Chiba ethylene complex, based on the premise stated below, with the goal of further collaborating and achieving greater improvements in the production and competitiveness of their existing businesses," they said in a statement.

In 2010, Idemitsu and Mitsui established Chiba Chemicals Manufacturing LLP as a limited liability partnership and began jointly operating the ethylene facilities owned by the two companies in Chiba.