Mitsui Chemicals to Sell Entire 50 Percent Stake in SSMC by October 2025

On June 24, Mitsui Chemicals announced its decision to transfer its entire 50% stake in Sinopec Mitsui Chemicals Co., Ltd. (SSMC) to Shanghai Gaoqiao Petrochemical Co., Ltd. The deal, approved by the board, is expected to be finalized by October 2025.

This move is part of Mitsui Chemicals’ global strategic shift to exit traditional basic chemicals amid shrinking domestic demand and intensifying international competition. The company is reallocating resources to green chemicals and high-performance materials. In May, Mitsui revealed plans to restructure its Basic and Green Materials Division, focusing on phenols, industrial chemicals, sustainable resources, technology licensing, and key subsidiaries like Prime Polymer.

SSMC, established in April 2006, specializes in producing phenol, acetone, and bisphenol A (BPA). Its Phase I plant, with a capacity of 120,000 tons/year of BPA, began operations in 2008. Phase II, launched in 2014, further expanded capacity to 250,000 tons/year of phenol and 150,000 tons/year of acetone. However, declining performance has plagued the company, with a ¥10.6 billion loss in FY2025 cited as a key reason for the divestment.

The announcement follows similar industry developments, such as INEOS Phenol’s recent decision to permanently shut down its Gladbeck, Germany, production site, signaling broader challenges in the basic chemicals sector.