Asahi, Mitsubishi to study consolidating Mizushima cracker capacity

02 August 2013 16:18  [Source: ICIS news]

LONDON (ICIS)--Asahi Kasei Chemicals and Mitsubishi Chemical have agreed to study consolidating their naphtha crackers at Mizushima in Japan’s Okayama prefecture into a single cracker, Asahi said on Friday.

The two companies’ cracker operations at Mizushima could be “unified” by early 2016 under the Mitsubishi cracker and run as an equal joint venture, Asahi said in a statement on its website.

A feasibility study on the cracker consolidation is expected to be finalised by the end of March 2014.

Asahi said that in increasingly tough conditions for petrochemicals in Japan it would be “problematic” for both Asahi and Mitsubishi to continue operating their respective 500,000 tonne/year Mizushima crackers.

“The operating climate for petrochemical operations is expected to become increasingly severe with contracting domestic demand, expanding supply capacity in the Middle East and China, and expanding supply capacity in the US due to the shale gas revolution,” Ashai said.

“[The companies] judged that there is an increasing necessity to establish the optimum production configuration for highly efficient operation by unification on a single naphtha cracker for the two parties in Mizushima in order to strengthen competitiveness and enhance earnings ability,” it added.

By: Stefan Baumgarten
+1 713 525 2653

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