Mitsubishi Chemical terminates synthetic ethanol production & sales

Mitsubishi Chemical terminates synthetic ethanol production & sales

By: ICN Bureau

Last updated : April 02, 2021 10:19 am



MCC has received a contract from Japan Alcohol Trading to carry out the distillation of fermented ethanol on its behalf from April 2022.


Mitsubishi Chemical Corporation (MCC) is planning to shut down its synthetic ethanol production facilities at the Mie Plant (Yokkaichi, Mie Prefecture) and terminate the production and sales of synthetic ethanol by February 2022.

In addition, MCC has received a contract from Japan Alcohol Trading to carry out the distillation of fermented ethanol on its behalf from April 2022.

The business environment surrounding MCC’s synthetic ethanol business remains harsh, in part due to rising repair costs of aging production facilities. In light of this environment, the company has  endeavored to maintain its competitiveness, mainly through streamlining to trim costs.

However, MCC has arrived at the decision that it will be difficult to continue production using these facilities. Owing to the shutdown of these facilities, MCC will terminate production and sales of synthetic ethanol and exit the commercial ethanol business.

Meanwhile, given the strong demand for commercial ethanol used for disinfectants, which are utilized as a measure to stop the spread of infections, and other purposes, we plan to use the existing distillation facilities at the Mie Plant to undertake distilling operations for Japan Alcohol Trading, which sells fermented ethanol.

MCC is tackling the fortification of portfolio management in accordance with the medium-term management plan of the Mitsubishi Chemical Holdings Corporation Group. Consequently, MCC aims to push forward with further optimization of our overall productivity, viewing the exit from the synthetic ethanol business as a step in this direction.

Also, as a comprehensive chemical manufacturer, MCC plans to contribute to society through the supply of products related to fighting the spread of infectious disease.         

Mitsubishi Chemical Corporation Japan Alcohol Trading

First Published : March 26, 2021 12:00 am