Idemitsu Kosan and Mitsui Chemicals to Consolidate Chiba Ethylene Complexes
- Consolidation of ethylene facilities is planned for July 2027 after Idemitsu's regular maintenance.
- Idemitsu's facility will close, and production will consolidate at Mitsui's site.
- Feedstock will be supplied to Chiba Chemicals Manufacturing by both companies.
- Products involved include ethylene, propylene, and C4 fractions.
Project Overview
Idemitsu Kosan and Mitsui Chemicals have agreed to consolidate their ethylene facilities in the Chiba region to optimize production. This decision follows extensive discussions on the impact of consolidation on feedstock procurement and the production and supply framework.
Consolidation Details
The consolidation will occur in July 2027, following regular maintenance at Idemitsu's Chiba Complex. Idemitsu's facility will close, and production will be consolidated at Mitsui's existing site. Both companies will supply feedstock to Chiba Chemicals Manufacturing (CCM), their joint venture.
Products and Operations
The consolidation involves all fractions, including ethylene, propylene, and C4. Post-consolidation, the facilities will be jointly operated via CCM, which was established in 2010 as a 50-50 joint venture between Idemitsu and Mitsui.
Strategic Context
This move comes in response to the challenging business environment for petrochemicals in Japan, driven by new and expanded petrochemical complexes in China and declining domestic demand for ethylene. The companies aim to strengthen their competitiveness and explore building a next-generation green complex to support resource circulation.
Source: Mitsui Chemicals