Mitsubishi Chemical to continue carbon materials business
- Decision reverses a February 2026 withdrawal to preserve in-house pitch-based carbon fiber feedstock and quality.
- Kagawa Plant equipment will be maintained and renovated; production suspended in H2 FY2027 and expected to resume in H2 FY2028.
- A prior restructuring provision of ≈¥59.7 billion was recorded; ≈¥9.0 billion will be recognized as a reversal in Q3 FY2027 results.
- Company will consult customers individually on future transactions and still intends to withdraw from certain coke operations per the earlier plan.
Background and rationale
In February 2026 Mitsubishi Chemical announced withdrawal from the coke and carbon materials business and planned to source pitch raw materials externally for its pitch-based carbon fiber. Following a re-examination prompted by rapid expansion in AI data center-related markets, the company decided at a Corporate Executive Officers' meeting to continue the carbon materials business to secure availability and quality of carbon fiber feedstock.
Operational changes
The company will maintain and renovate equipment at its Kagawa Plant and continue production and sale of needle coke and pitch coke. Production will be temporarily suspended in the second half of FY2027 for facility renovation, with operations expected to restart in the second half of FY2028. Mitsubishi Chemical will consult customers individually regarding future transactions. It also notes it will withdraw from certain coke operations as previously announced, proceeding with equipment removal after ceasing production in H2 FY2027.
Financial impact
Mitsubishi Chemical recorded a restructuring provision of approximately ¥59.7 billion in the prior consolidated fiscal year. As a result of this decision, some expected removal costs and special retirement benefits will not be required, and the company plans to record a non-recurring profit of about ¥9.0 billion as a reversal of provision in Q3 for the fiscal year ending March 2027; this impact is reflected in the consolidated earnings forecast.
Market focus
The move aims to stabilize pitch-based carbon fiber quality and strengthen supply for growth markets including thermal management for 5G/6G infrastructure, AI servers and data centers, and space-related applications that require high elastic modulus and dimensional stability.
Source: Mitsubishi Chemical