Mitsubishi Chemical Holdings Corp and Asahi Kasei Corp had announced plans to integrate operations of their plants in Okayama Prefecture, in April 2009. The merger was planned to meet the glut in demand of ethylene derivatives. With the integration, combined ethylene capacity would total to 890,000 tons. However, the integration has been delayed as a result of stalled negotiations, possibly due to strong recovery in Chinese demand. It is reported that Asahi Kasei has become less eager to cut back on its production capacity on an upturn in demand for petrochemical products from China.