Japan's Mitsubishi Chemical, Asahi Kasei, Mitsui Chemicals to merge steam crackers

Japan's Mitsubishi Chemical, Asahi Kasei and Mitsui Chemicals have reached a basic agreement to merge their naphtha-fed steam crackers, scrapping the steam cracker in Mizushima, the companies said in a joint statement Jan. 27.

Mitsubishi Chemical and Asahi Kasei jointly own a naphtha-fed steam cracker in Mizushima through their 50-50 joint venture, Asahi Kasei Mitsubishi Chemical Ethylene Corp., established in 2016, while Mitsui Chemicals operates a naphtha-fed steam cracker in Osaka.

The two crackers, with a combined ethylene production capacity of 951,000 metric tons/year, will be merged into a single facility in Osaka, the companies said.

The merger of the steam crackers is planned for fiscal year 2030-31 (April-March), the companies said. The consolidated steam cracker, with an ethylene production capacity of 455,000 mt/y, will be operated by a joint venture to be established by the three companies.

The shareholding structure of the new company has yet to be determined.

Japan's naphtha-fed steam crackers have been operating below full capacity since 2022 due to negative margins.

According to data from the Japan Petrochemical Industry Association, operating rates fell to a record low of 75.1% in March 2025. The average operating rate stood at 77.1% in December 2025, down from 78.4% in November 2025, the latest JPCA data showed.

Capacity rationalization has also been ongoing amid struggling margins caused by overcapacity.

Announced cracker rationalizations in Japan include the planned shutdown of Maruzen Petrochemical's naphtha-fed steam cracker in Chiba in FY 2026-27, the consolidation of Idemitsu Kosan and Mitsui Chemicals' ethylene production in Chiba in July 2027 and the expected decommissioning of one of ENEOS' two naphtha-fed steam crackers in Kawasaki by 2028.