Asahi Kasei, Mitsui Chemicals, and Mitsubishi Chemical Agree in Principle to Establish New Joint Venture to Restructure Ethylene Production in Western Japan

Asahi Kasei, Mitsui Chemicals, and Mitsubishi Chemical have reached a principle agreement to establish a new joint venture aimed at consolidating ethylene production in western Japan, marking a major restructuring of the region’s petrochemical infrastructure.

Under the framework agreement, the ethylene cracker operated by Asahi Kasei Mitsubishi Chemical Ethylene Corporation (AMEC) at Mizushima, Kurashiki City, Okayama Prefecture, will be phased out by fiscal year (FY) 2030. Ethylene production will instead be concentrated at the plant of Osaka Petrochemical Industrial Co., Ltd. (OPC) in Takaishi City, Osaka Prefecture, which will become the new production hub.

This move forms part of a broader industry-wide strategy to reduce carbon emissions and optimize capacity, as Japan’s petrochemical sector faces increasing decarbonization pressures. The three companies have jointly examined structural reforms of their ethylene businesses in western Japan and have been selected for Japan’s Ministry of Economy, Trade and Industry (METI) “FY2025 Support Program for Energy and Manufacturing Process Transformation in Hard-to-Abate Industries.” The program supports initiatives such as replacing petroleum-based feedstocks with biomass alternatives.

As part of the transition plan, Asahi Kasei intends to construct a demonstration plant at its Mizushima site using its proprietary Revolefin™ technology, which converts bioethanol into ethylene, propylene, and other basic chemicals. The technology is currently under development. Following evaluation of plant performance and operational feasibility, the three companies plan to commence joint commercial production from FY2034.

Once the AMEC Mizushima facility is shut down, decommissioning will begin immediately, with the ethylene cracker and related equipment to be dismantled without delay. In parallel, the Senboku OPC plant in Osaka will undergo modifications to absorb the consolidated production capacity. After demolition is completed, the companies will jointly explore ways to repurpose the vacated Mizushima site in a manner that supports carbon neutrality.

Ethylene is the cornerstone of the petrochemical industry, serving as a fundamental building block for a wide range of manufacturing sectors. As individual producers approach the limits of their standalone emissions-reduction capabilities, the companies believe that closer collaboration and shared technologies are essential to achieving carbon neutrality.

Through the new joint operating framework, Asahi Kasei, Mitsui Chemicals, and Mitsubishi Chemical aim to strengthen governance, ensure fair and transparent cost and profit allocation, and accelerate the transition toward competitive, low-carbon basic chemicals.