Asahi Kasei, Mitsubishi Chem announce study for unification of naphtha cracker facilities in Mizushima

06-Aug-13

Asahi Kasei Chemicals Corporation and Mitsubishi Chemical Corporation, have reached agreement to specify concrete premises for studies toward unification on a single naphtha cracker in Mizushima. The two have performed unified management of their naphtha crackers located in Mizushima under Nishi Nippon Ethylene LLP since April 1, 2011. Asahi Kasei and Mitsubishi jointly established the limited liability partnership (LLP) for the purpose of strengthening the competitiveness of the Mizushima industrial zone, including through alliances with oil refineries, and have performed studies for the eventual unification on one of the naphtha crackers that each company has in Mizushima. The operating climate for petrochemical operations is expected to become increasingly severe with contracting domestic demand, expanding supply capacity in the Middle East and China, and expanding supply capacity in the US due to the shale gas revolution. Asahi Kasei and Mitsubishi thus shared a recognition that continuation of their respective operations in their current configuration would be problematic, and judged that there is an increasing necessity to establish the optimum production configuration for highly efficient operation by unification on a single naphtha cracker for the two parties in Mizushima in order to strengthen competitiveness and enhance earnings ability. It was therefore agreed to advance concrete studies based on the following premises.