Profitability Concerns: Mitsubishi Chemical will Close Fukushima Plant in 2027

Mitsubishi Chemical Group has decided to phase out production at Mitsubishi Chemical Corporation's Onahama Plant and Shinryo Corporation (Shinryo) Iwaki Plant in Iwaki, Fukushima Prefecture by the end of March 2027.

The Onahama Plant produces ammonia and its derivatives, methanol, formalin, wood adhesives, fatty acid amides, and ultra-high purity process chemicals, among others. Shinryo's Iwaki Plant produces fine chemicals, TAIC, and distillation products.

Mitsubishi Chemical's Onahama Plant began operations in September 1937 under the name of Japan Hydrogen Industrial Co., while Shinryo's Iwaki Plant was established in October 2020, formed by the transfer and integration of some of Mitsubishi Chemical's products and the business of the former Onahama Distillery.

The two plants produce a variety of chemical products. In recent years, in response to the drastic changes in the market environment, the two plants have taken measures to simplify operations and attract new business, but despite this, it has become extremely difficult to ensure the profitability of the plants.

Therefore, Mitsubishi Chemical has decided to stop product production at these plants in stages from March 2026 and completely stop production at the end of March 2027.

Mitsubishi Chemical will support employees at these plants by reallocating employees within the group and providing re-employment support.