Countdown to 2025! 44 Global Chemical Giants “Slim Down”: Plant Closures, Asset Sales, Layoffs...

25. Mitsubishi Chemical (Japan) In January, Mitsubishi Chemical canceled plans to build a new 350,000-ton-per-year methyl methacrylate (MMA) monomer plant in Louisiana, USA. In February, Mitsubishi Chemical sold Mitsubishi Tanabe Pharma Corporation to Bain Capital for approximately ¥510 billion. In March, Mitsubishi Chemical decided to phase out chemical production at its Komahama Plant (Iwaki City, Fukushima Prefecture) and Shinryo Iwaki Plant—both operated by Mitsubishi Chemical Corporation—in stages starting March 2026, with full cessation scheduled by end-March 2027. Komahama Plant: Key products include ammonia and derivatives (e.g., ammonium hydroxide), methanol, formalin, lignin-based adhesives, AdBlue™, fatty acid amides, ultra-high-purity process chemicals (hydrochloric acid, nitric acid, ammonia solution), and TAIC derivatives, among others. Iwaki Plant: Key products include fine chemicals, TAIC™, and distilled products. In April, Mitsubishi Chemical exited the PET bottle business, involving its Kanto and Chubu plants in Japan. In June, Mitsubishi Chemical decided to relocate its PMMA plant—Mitsubishi Chemical Polymer Materials (Nantong) Co., Ltd.—from the North Zone to the South Zone of Nantong Economic & Technological Development Zone, Jiangsu Province; the plant’s annual PMMA capacity is 60,000 tons. In July, Mitsubishi Chemical exited the polyester resin manufacturing business for printer toner; in the same month, it transferred its wholly owned subsidiary J-Film Corporation—which has long manufactured plastic films and laminates—to a special-purpose entity under Marunouchi Capital Fund III. In September, Asahi Kasei, Mitsui Chemicals, and Mitsubishi Chemical jointly established a limited liability partnership (Setouchi Ethylene LLP) to conduct feasibility studies on integrating two shared ethylene production facilities located in western Japan. 26. Mitsui Chemicals (Japan) In May, Sumitomo Chemical and Mitsui Chemicals sold their 66.5% stake in Nippon A&L Co., Ltd. (a joint venture producing SBR latex and ABS resin) to Sojitz Corporation. Also in May, Mitsui Chemicals exited the nitrogen trifluoride (NF₃) business previously operated by its wholly owned subsidiary, Mogami Mitsui Chemicals. Also in May, Mitsui Chemicals permanently reduced its TDI production capacity in Ōmuta, Japan, from 120,000 tons/year to 50,000 tons/year. In June, Mitsui Chemicals formally resolved to transfer its entire 50% equity stake in Sinopec Mitsui Chemicals Co., Ltd. (SSMC)—including its 120,000-ton/year bisphenol-A and 400,000-ton/year phenol/acetone units—to Shanghai Gaoqiao Petrochemical Co., Ltd. In December, Idemitsu Kosan and Mitsui Chemicals reached a final agreement on the “Chiba Region Ethylene Facility Integration Project” aimed at optimizing production. Also in December, Mitsui Chemicals, Idemitsu Kosan, and Sumitomo Chemical signed an agreement to merge core segments of their polyolefin (PO) businesses in Japan. 27. Asahi Kasei (Japan) In May, Asahi Kasei decided to exit its MMA monomer, cyclohexyl methacrylate (CHMA), PMMA resin, and styrene-butadiene (SB) emulsion businesses, and restructure its acetonitrile supply framework—including closure of its purification plant in Kawasaki. In December, Asahi Kasei and Teijin Limited completed the absorption merger of two of their respective subsidiaries—both engaged in high-performance fiber businesses. Also in December, Asahi Kasei sold its lead-acid battery separator business, Daramic, to Kingswood Capital Management, LP, completing the transaction.

According to forecasts by global authoritative institutions, will the era of supply-demand rebalancing arrive amid the ongoing wave of chemical industry capacity shutdowns?

If all announced permanent capacity shutdown plans currently underway across multinational enterprises are fully implemented, global chemical capacity utilization is projected to peak as early as 2028—marking the onset of a new phase in the global chemical market. Structural adjustment in the chemical industry is accelerating. Over the past three years, volatile global energy prices, geopolitical tensions, and slowing demand growth have collectively squeezed corporate profit margins—forcing the chemical industry to reassess its capacity footprint. According to publicly available information, globally announced ethylene capacity shutdown plans for 2025–2028 total as much as 7.8 million tons/year. Of this, South Korea alone plans to shut down 2.7–3.7 million tons/year of ethylene capacity. Meanwhile, roughly 10.5 million tons/year of newly planned ethylene capacity face significant risk of delay or cancellation, based on already-announced projects. Taken together—the withdrawal of existing capacity and uncertainty surrounding new capacity—these developments further reinforce expectations of tightening supply. China’s ethylene capacity faces immense transformation pressure. As a pivotal global chemical market, any shifts in China’s capacity dynamics carry far-reaching implications. Ahmed specifically noted that China operates four ethane-cracking units reliant on U.S. ethane imports, with a combined capacity of 3.7 million tons/year; prolonged U.S.–China high tariffs pose substantial risk of shutdown for these units. Additionally, China’s 11 million tons/year of mixed-feedstock ethylene capacity would see annual output shrink by 1.7 million tons if propane supply is disrupted and naphtha is substituted as feedstock. China is currently advancing policies to optimize and consolidate outdated capacity—potentially phasing out 6.1 million tons/year of aging, small-scale facilities—further intensifying future global supply pressures. If all announced shutdown plans materialize, the supply-demand landscape will inevitably be reshaped. Should all these shutdown initiatives be fully realized—totaling 29.8 million tons/year—the compound annual growth rate (CAGR) of global ethylene capacity from 2024 to 2029 would fall to just 0.8%. Consequently, global ethylene capacity utilization would surpass 90% as early as 2028, ushering the market into a tight-balance era.

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