Asahi Kasei will close several domestic petrochemicals plants, and has agreed to share a naphtha cracker with Mitsubishi Chemical in light of difficult market conditions. Closures have been announced for its 150,000 tpa acrylonitrile plant in Kawasaki in August 2014; its 320,000 tpa styrene plant in Mizushima in March 2016; its 65,000 tpa acrylonitrile-butadiene-styrene plant in Mizushima in December 2015; its 24,000 tpa styrene-butadiene latex plant in Mizushima in December 2015; and its 37,000 tpa epoxy resin plant in Mizushima in May 2015., as compiled by tcetoday.com.
News of the closures follows an agreement to close Asahi Kasei’s 500,000 tpa naphtha cracker at Mizushima, and instead share output from Mitsubishi Chemical’s neighbouring 500,000 tpa cracker. The pair has formed a 50/50 joint venture called Nishi Nippon Ethylene, and plan to permanently shut down Asahi Kasei’s cracker in April 2016. The capacity of the remaining cracker will be increased to 570,000 tpa. The closure of the acrylonitrile plant in Kawasaki comes alongside falling demand and rising feedstock prices. The company will be left with 200,000 tpa of output in Mizushima, to serve the Japanese market, 560,000 tpa of production in Korea, for sales to Korea, China and Taiwan, and 200,000 tpa in Thailand for the ASEAN markets. The decision to end styrene production at one of its plants in Mizushima comes as other plants under construction or expansion in Asia threaten to expose Asahi Kasei’s exports to greater fluctuations in overseas prices. It will close its smaller styrene plant, cease exports, while its larger neighbouring 390,000 tpa styrene plant supplies only the Japanese market.
Its acrylonitrile-butadiene-styrene plant, styrene-butadiene latex plant, and epoxy resin plant have been forced closed by cheaper imports, falling demand, and oversupply, respectively.
04-Mar-14 
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