Mitsubishi Chemical has begun considering spinning off its basic chemicals business. It aims to finalize the details for the spin-off's execution by fiscal 2027. Against the backdrop of changes in the domestic and international supply-demand structure and declining competitiveness in East Asia, and with the business environment for the petrochemicals sector becoming increasingly severe, the company has determined that industry-wide reorganization and integration with other companies are indispensable. With future integration and reorganization in mind, the company aims to strengthen the competitiveness of its petrochemicals business through the spin-off.

Mitsubishi Chemical Group announced this on May 25. The spin-off study primarily focuses on the basic chemicals business, including ethylene and propylene, which falls under its Basic Materials segment. The new company aims to contribute to Japan's economic security by ensuring stable and sustainable supply of basic chemicals.

Mitsubishi Chemical is currently discussing the optimization of ethylene plant production systems in Western Japan, along with Asahi Kasei and Mitsui Chemicals. They have agreed to cease operations of the ethylene plant (with an annual production capacity of 496,000mt) at Asahi Kasei Mitsubishi Chemical Ethylene Corp (AMEC)'s Mizushima factory with a target of fiscal 2030, and to consolidate it into the facility of Osaka Petrochemical, a consolidated subsidiary of Mitsui Chemicals.