Mitsubishi Chemical Group (MCG) has announced its decision to exit the coke and carbon materials (needle coke, pitch coke) business operated under its consolidated subsidiary, Mitsubishi Chemical Corporation.

In connection with the withdrawal from this business, MCG anticipates a total non-recurring loss of approximately ¥85 billion, and expects to record a non-recurring loss of approximately ¥19 billion in the third quarter financial results for the fiscal year ending March 2026. The remaining balance of approximately ¥66 billion is to be recorded as an estimate in the financial results for the fourth quarter of the fiscal year ending March 2026.

This restructuring is part of the company’s ongoing portfolio reform under its "KAITEKI Vision 35" and "Medium-Term Management Plan 2029," aimed at mitigating risks associated with market volatility.

The decision follows a challenging business environment marked by a persistent slump in the overseas coke market due to weak steel demand, particularly from China and the start-up of new large-scale facilities in Indonesia.

 With no prospect of resolving these structural issues despite the various measures taken to improve profitability and the quality advantage of the company’s coke, the company has determined that medium- to long-term growth would be difficult to achieve and it has therefore decided to cease coke production. Oversupply and sluggish demand continue to plague the carbon materials sector as well. Since the production system for carbon materials is based on the operation of coke ovens, halting coke production would directly impact the cost structure of carbon materials.

In view of these circumstances, MCG comprehensively reviewed the medium-to-long-term positioning of this Product Group within its overall business portfolio against the three criteria for business selection established by the company -- consistency with its Vision, competitive advantage, and growth potential -- and has consequently decided on a business withdrawal from this Product Group.