Mitsubishi Chemical Group to Phase Out Production at Two Plants by March 2027

On March 31, 2025, Mitsubishi Chemical Group announced its decision to gradually cease production at the Onahama Plant and Iwaki Plant in Fukushima Prefecture by the end of March 2027. This strategic move comes in response to the rapidly changing market environment and ongoing challenges in ensuring profitability at these facilities.

The Onahama Plant, which began operations in September 1937 under the name Nihon Hydrogen Industry, has a long history of manufacturing various chemical products. The Iwaki Plant, established in October 2020, was formed by integrating various products from Mitsubishi Chemical and the former Onahama Distillation Plant. Despite efforts to streamline operations and attract new business, the plants have struggled to maintain profitability.

As part of its Medium-Term Management Plan 2029, announced in November 2024, Mitsubishi Chemical Group is focusing on business transformation guided by three key criteria: alignment with corporate vision, competitive advantages, and growth potential. After evaluating the Onahama and Iwaki Plants against these standards, the decision was made to phase out production at both locations.

The company plans to support affected employees through internal reassignment and reemployment initiatives, demonstrating its commitment to workforce welfare during this transition.