Mitsubishi Chemical Accelerates Exit Plan 30 Businesses to be Cleared by 2029

Mitsubishi Chemical Group has made another bold move amid the global chemical industry’s deep adjustment. On April 24, it announced that its subsidiary Tohsen will completely shut down fiber dyeing and processing operations by March 2026, marking a decisive departure from a once-core business line.

Beyond the already-terminated fiber production, even the remaining fiber processing activities will be wound down. The announcement is part of a sweeping transformation: from petrochemicals to traditional materials, from manufacturing to processing, Mitsubishi Chemical’s exit list continues to expand, signaling an urgent pivot toward the future.

Tohsen, specializing in dyeing synthetic and natural fibers, has struggled under declining global demand. Despite attempts to optimize its business structure and cut fixed costs, profitability remained elusive. Under the New Medium-Term Management Plan 2029, Mitsubishi Chemical determined that Tohsen’s operations cannot achieve stable returns and decided to exit.

This is not an isolated move. The company is undergoing a radical portfolio restructuring, aiming to transition completely from bulk chemicals to specialty materials within five years under its KAITEKI Vision 35 strategy. The goal is to achieve 570 billion yen in core operating profit by 2029 and 900 billion yen by 2035, driven mainly by growth in mobility, semiconductors, food, healthcare, and green chemicals.

Notably, Mitsubishi Chemical is actively developing green chemical supply chains, expanding cooperation in semiconductor substrates like gallium nitride (GaN) with JSW, and investing heavily in fields such as barrier films, specialty resins, biodegradable plastics, and carbon fiber.

By 2029, the company plans to complete the divestiture of around 30 non-core businesses, worth roughly 400 billion yen. This aggressive reshaping underscores a broader shift across global chemical giants toward high-end materials, energy transition solutions, and digital manufacturing.

In an era where “the golden age of traditional chemicals is over,” Mitsubishi Chemical’s daring transformation sends a powerful message: companies must reinvent themselves or be left behind. Those who dare to break free will be the ones to thrive in the next industrial era.