Mitsubishi Chemical to Phase Out Production by 2027 in Major Restructuring

On March 31, 2025, Mitsubishi Chemical Group announced its decision to gradually cease production at its Onahama Plant in Iwaki City, Fukushima Prefecture, and the Iwaki Plant of Shinryo Corporation by the end of March 2027. This move marks a significant shift in the company's operational strategy.

The Onahama Plant, which began operations in September 1937 as part of Japan Hydrogen Energy Corporation (later known as Japan Chemical Co.), and the Iwaki Plant, established in October 2020, have both been involved in the production of various chemical products. However, in recent years, these facilities have faced increasing challenges due to dramatic changes in the market environment. Despite efforts to streamline operations and attract new business, maintaining profitability has become increasingly difficult.

Mitsubishi Chemical Group is pursuing a business portfolio transformation based on the three criteria outlined in its New Midterm Management Plan 2029, released in November 2024. These criteria focus on alignment with the company’s vision, competitive advantages, and growth potential. After reviewing the two plants against these standards, the company made the decision to phase out production.

The Onahama Plant primarily produces:

• Ammonia and its derivatives (ammonium hydroxide)
• Methanol, formaldehyde, lignin adhesives, AdBlue™
• Fatty acid amides
• Ultra-pure process chemicals (hydrochloric acid, nitric acid, ammonia solution)
• TAIC derivatives

The Iwaki Plant focuses on:

• Fine chemicals
• TAIC™
• Distillation products

Mitsubishi Chemical Group has committed to supporting employees affected by the shutdown by reallocating staff within the group and providing reemployment assistance.

Production at these plants will begin to wind down in March 2026, with complete cessation expected by the end of March 2027.