Why is Mitsubishi Chemical exiting its biodegradable plastic business, and what is the financial impact?

Mitsubishi Chemical is exiting its biodegradable plastic business because it judges that future growth is difficult due to intensifying competition from alternative materials. The company had produced these plastics in Thailand through a 50–50 joint venture with a major local chemical company, but manufacturing ended by the end of December 2025; sales will cease once existing inventory is depleted. The exit will incur a total cost of 10 billion yen, covering equipment dismantling expenses and equity investment impairment losses, with 5 billion yen allocated as special losses in each of the fiscal years ending March 2026 and March 2027.

What were the main applications and production arrangements for Mitsubishi Chemical’s biodegradable plastics before the exit?

Mitsubishi Chemical’s biodegradable plastics were primarily used in food packaging applications, such as coatings for paper cups and coffee capsules. Production was carried out in Thailand via a 50–50 joint venture with a large local chemical enterprise; however, this manufacturing operation concluded at the end of December 2025, and sales will terminate after current stock is sold out.

Mitsubishi Chemical Exits Biodegradable Plastic Business

May 20, 2026

Mitsubishi Chemical will exit its biodegradable plastic business, halting Thai production by December 2025 amid fierce competition. The company expects 10 billion yen in costs, split between the 2026 and 2027 fiscal years.

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