Asahi Kasei, Mitsui Chemicals, and Mitsubishi Chemical have agreed in principle to establish a new joint operating company that will consolidate ethylene production in western Japan, marking a major restructuring of the region’s petrochemical base.
Under the framework agreement, the ethylene cracker operated by Asahi Kasei Mitsubishi Chemical Ethylene Corp. (AMEC) in Mizushima, Kurashiki, Okayama Prefecture, will be phased out by fiscal year 2030. Ethylene production will be concentrated at Osaka Petrochemical Industries, Ltd's (OPC) facility in Takaishi, Osaka, which will serve as the new production hub.
The move is part of a broader strategy to cut carbon emissions and optimize production capacity as Japan’s petrochemical industry faces mounting pressure to decarbonize.
The three companies have jointly explored structural reforms for their western Japan ethylene operations and were selected for Japan’s Ministry of Economy, Trade and Industry (METI) “Fiscal 2025 Support Program for Energy and Manufacturing Process Conversion in Hard-to-Abate Industries.” The program supports initiatives such as replacing petroleum-based feedstocks with biomass alternatives.
As part of the transition, Asahi Kasei plans to build an initial demonstration plant at its Mizushima site using its Revolefin technology, which converts bioethanol into ethylene, propylene, and other basic chemicals. The technology is currently under development. After evaluating plant performance and operational feasibility, the three companies aim to begin joint commercial production in fiscal year 2034.
Decommissioning work at the AMEC Mizushima plant will proceed following the end of operations, with the cracker and related equipment dismantled immediately. At the same time, conversion work will be carried out at the Senboku OPC plant in Osaka, which will absorb consolidated production. Once dismantling is complete, the companies will jointly examine ways to reuse the vacated Mizushima site in a manner that supports carbon neutrality.
Ethylene is a cornerstone of the petrochemical industry, forming the basis for a wide range of essential materials used across manufacturing sectors. As individual producers approach the limits of emissions reductions at standalone facilities, the companies argue that closer collaboration and shared technologies are becoming critical to achieving carbon neutrality.
Through the new joint operating framework, Asahi Kasei, Mitsui Chemicals, and Mitsubishi Chemical aim to strengthen governance, ensure fair and rational cost and profit sharing, and accelerate the shift toward competitive, decarbonized basic chemicals.
