In May 2011, after a planned turnaround, Mitsubishi Chemical Holdings plans to cut ethylene production capacity at its 470,000 tpa sole naphtha-fed steam cracker at Mizushima by 20%. Capacity will be trimmed to 380,000 tpa, in line with the company's agreement with Asahi Kasei to jointly operate their Mizushima steam crackers, by setting up a 50:50 joint venture company. An adjustment in ethylene production capacity is being planned in anticipation of a 30% drop in ethylene demand. Since restructuring of the ethylene derivative plants is on the cards, Mitsubishi will not need to source additional ethylene as feedstock requirements. An exit from the styrene monomer business as well as vinyls business is on the cards in 2011-leading to shutdown of its 371,000 tpa styrene monomer plant in Kashima as well as its 391,000 tpa vinyl chloride monomer unit in Mizushima. These restructuring efforts will result in reduction of fixed costs by Yen 13 bln (US$14 mln).