Mitsui Chemicals Inc closing down polyurethane, phenol businesses by 31 December 2016

Mitsui announces restructuring plan, closes few production facilities

6:49 AM, 8th February 2014
Mitsui Chemicals Inc closing down polyurethane, phenol businesses

TOKYO, JAPAN: Japanese chemical major Mitsui Chemicals Inc has announced a major restructuring plan, which involves closing down of some production facilities. The restructuring plan is in order to bring down the losses due to its underperforming polyurethane and phenol businesses.

As a part of the plan for polyurethane business, all plants at the Kashima Works, Japan and diphenylmethane diisocyanate (MDI) plants (having production capacity of 60,000 tonne per annum) at the Omuta Works, Japan of Mitsui Chemicals are scheduled to be terminated and disposed of by 31 December 2016. Post shutdown, production of specialty isocyanates will be shifted to the Omuta Works. Attributing reasons for these shutdowns, Mitsui said that business profitability of TDI and MDI dropped due to market oversupply caused by rapid expansion of production in Asia, especially in China.

For phenol business, the phenol plant at the Chiba Phenol Co Ltd - a joint venture between Mitsui Chemicals and Idemitsu Kosan - will be closed. According to the company statement, sales slumps in domestic phenol and deterioration in export profitability due to oversupply from new facilities in Asia compelled the two companies (Mitsui and Idemitsu) to reduce production and realign phenol operations. The closure of Chiba Phenol Co plant is scheduled for 30 September 2014.

Following the closure, Mitsui Chemicals will meet Idemitsu’s phenol needs by providing in-house produced phenol. The two companies will take actions to intensify cost competitiveness in their respective phenol chains. Additionally, as part of the domestic phenol business restructuring, Mitsui Chemicals has decided to terminate its Bisphenol A plants at its Ichihara Works, Japan.

© Business Standard News



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