 |
|
|
 |
|
|
|
|
| December 4, 2000 |
|
| Shutdown of Ethylene Production Facility at
Yokkaichi Plant |
|
| Mitsubishi Chemical Corporation |
|
Since February 1999, Mitsubishi Chemical Corporation (MCC,
Head office: Chiyoda-ku, Tokyo; President: Kanji Shono) has been making preparations
to shut down the ethylene production facility (annual production capacity: 270,000
tons) at its Yokkaichi Plant, and to concentrate ethylene production at its Mizushima
Plant and Kashima Plant, thereby achieving significant reductions in olefin costs.
Accordingly, we have decided to shut down the facility as of January 12, 2001.
Following the shutdown of the facility, the Mizushima Plant and the Kashima Plant
will supply ethylene and propylene to the Yokkaichi Plant and to the derivative
operations of other companies within the complex.
MCC built its first 22,000 ton-per-year ethylene production facility at its Yokkaichi
Plant in May 1959, at the start of the petrochemical industry boom in Japan. Ethylene
production at the Yokkaichi Plant was subsequently expanded in response to further
developments in the Japanese petrochemical industry. The ethylene production facility
currently in operation has been in continuous use for over 30 years, since March
1968. However, with the operation (commencing in the middle of 2000) of large-scale
ethylene production facilities in Saudi Arabia, Taiwan and Singapore, it is becoming
increasingly difficult to export olefins and derivative products. Also, large
cuts in import tariffs on major petroleum products (which will come into effect
as of 2004) are expected to further dampen any increase in domestic demand. In
light of these factors, MCC conducted a review of its ethylene production scheme,
ultimately deciding to shut down the facility at the Yokkaichi Plant.
In conjunction with the shutdown of the ethylene production facility, the ethylene
glycol (EG) and ethylene oxide (EO) production facilities at the Yokkaichi Plant
will, as of January 15, 2001, also be shut down, with production to be concentrated
thereafter at the Kashima Plant. EG sales within Japan will continue as before,
and exports will be covered by measures with overseas products. EO will be transported
from Kashima to Yokkaichi, permitting continued EO sales to the central and western
region of Japan, and ensuring uninterrupted production of EO derivatives at the
Yokkaichi Plant.
With our previously announced three-year Mid-term Plan, which commenced as of
this fiscal year, we have identified our petrochemical business as the fundamental
business which can support MCC Group's framework. Under our policy of "Selection
and Concentration", we intend to implement a strategy for growth that will
ensure stable revenue, through comprehensive cost-reduction measures and through
an overall reorganization of our business structure including a review of current
alliances. Additionally, we will strengthen revenues through our basic strategy
for our core business, "domestic is domestic, overseas is overseas".
| For further information, please contact |
| Public Relations Department, |
| Mitsubishi Chemical Corporation |
| Tel: [+81] 3-3283-6274 |
|
|
|
 |
|
|
|
