UBE Corporation Accelerates Chemical Business Shift Halts Key Operations by 2028

Ube Corporation has unveiled new details and timelines for its structural reform, focusing on expanding its specialty chemicals portfolio while reducing or ceasing production in its basic chemicals segment. The company aims to halt ammonia and related product production at its Ube City plant by March 2028, two years ahead of its previous schedule. Production of caprolactam and polyamide materials at the same plant will end by March 2027. Post-restructuring, the facility will prioritize specialty chemicals such as polyimides, separation membranes, ceramics, pharmaceuticals, and high-purity chemicals.

In Thailand, Ube will stop producing cyclohexanone, caprolactam, and ammonium sulfate, shutting down one of its two polyamide production lines. The site will shift focus to composite materials, polycarbonate diols, and elastomers, while Ube Fine Chemicals Asia will cease producing 1,6-hexanediol and 1,5-pentanediol.

Meanwhile, Ube’s Spain facility will continue caprolactam and polyamide production, expanding its recycling and bio-based product lines to meet strong European demand. Over time, production of cyclohexane and diols will also cease, with a focus on carbon neutrality in Europe.

Construction of a new plant in Louisiana, USA, is underway and expected to be completed by 2026. The facility will produce 100,000 tons of dimethyl carbonate (DMC) and 40,000 tons of ethyl methyl carbonate (EMC) annually. These key materials are used in lithium-ion battery electrolytes and semiconductor manufacturing. The project represents Ube’s largest-ever single investment.

Ube anticipates achieving its 50% greenhouse gas reduction target (from 2013 levels) by 2028, well ahead of schedule. By leveraging profitability from its specialty chemicals business, the company aims to offset losses from the basic chemicals exit. Ube will continue investing in specialty businesses and advancing sustainability management as part of its 2030 growth strategy.