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Mitsubishi Chemical Eying Petrochemical Biz Spin-Off
The move comes as Japanese makers of basic chemicals, such as ethylene, face a worsening business ecological stability due partly to overproduction by Chinese makers.
The companies are struggling to maintain their competitiveness as the operating rate to production facilities to such basic chemicals, applied as materials to plastics and synthetic fibers, has fallen in recent years also reflecting slumping demand at home.
In addition, the ongoing Middle East crisis has highlighted the need to ensure stable supplies. “It’s essential to reinforce the business foundation of our petrochemical business,” a general relations official at Mitsubishi Chemical Group said.
Last year, Mitsui Chemicals Inc. announced it plans to spin off its petrochemical business around fiscal 2027 and make the spin-off the nucleus of consolidation with other companies.
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