WEBWIRE – Friday, November 24, 2023
Mitsui Chemicals, Inc. (Tokyo: 4183; President & CEO: HASHIMOTO Osamu)announced that it intends to close its polyethylene terephthalate (PET) plant within Iwakuni-Ohtake Works in October 2024.
Mitsui Chemicals began producing PET resin at Iwakuni-Ohtake Works in 1984, from which point on the company steadily grew its PET business in line with rising domestic demand for PET drink bottles. Since 2013, however, Japan has seen a rise in imports of cheap PET from overseas, as well as growing demand for recycled PET bottles that do not require virgin resin a combination of factors that has forced Mitsui Chemicals to lower the facility operating rate of its PET business. Against this backdrop, Mitsui Chemicals attempted a wide range of streamlining initiatives to save the business, but has now determined that it is no longer feasible to secure a profit from domestic PET resin production.
Mitsui Chemicals is pursuing portfolio transformation as part of its VISION 2030 Long-Term Business Plan. The companys Basic & Green Materials Business Sector continues to speed up efforts for business restructuring and the growth of high-performance products, aiming through this to reduce volatility and, in turn, improve capital efficiency and lay the foundations for achieving a steady profit. Mitsui Chemicals is also taking the lead in reform aimed at a circular economy in order to help minimize the burden on the environment and create a decarbonized society.
Overview of the PET plant to be closed
Product: Polyethylene terephthalate (PET)
Production facilities: Within Iwakuni-Ohtake Works (Yamaguchi)
Production capacity: 145,000 tons/year
Closure schedule: October 2024 (tentative)