Mitsubishi Chemical has decided to withdraw from the polybutylene succinate (PBS) business operated via its Thai equity-method affiliate, PTT MCC Biochem Co. This marks a strategic pullback from the biodegradable plastics segment it once helped pioneer.

 

The decision involves Mitsubishi Chemical’s stake in the joint venture with PTT Global Chemical Public Company Limited. The company confirmed it will step away from the business after prolonged financial underperformance and weakening market alignment with initial expectations.

 

Polybutylene succinate (PBS) is a biodegradable plastic designed to break down into water and carbon dioxide through naturally occurring microorganisms. The joint venture began commercial production of its flagship material, “BioPBS”, in 2017. 

 

The product found use in applications such as coatings for paper cups and coffee capsules, positioning itself within the growing sustainable materials market.

 

However, the venture failed to deliver expected returns. As Mitsubishi Chemical stated, “However, the PBS business has continued to suffer from low profitability due to various factors, including a divergence between actual market conditions and initial assumptions.” 

 

The company added that, after reviewing future prospects, “Mitsubishi Chemical has concluded that achieving sustainable growth in this business will be difficult and has therefore decided to withdraw from the business.”

 

Following the decision, production at PTT MCC Biochem Co., Ltd in Rayong Province, Thailand, is set to end in December 2025, with sales continuing only until existing inventory is depleted. The company will then proceed with dismantling production facilities, after which the joint venture will be dissolved and liquidated under local laws and regulations.

 

The withdrawal marks the end of Mitsubishi Chemical’s direct involvement in BioPBS production and signals a broader reassessment of its position in the biodegradable plastics sector.