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Mitsubishi Chemical Group, Japan’s largest chemical company, has accelerated its withdrawal from traditional petrochemical operations, announcing decisions to close factories on two occasions within just three days. On March 31, Mitsubishi Chemical announced that it has decided to phase out production at its Kominehama Plant and Shin-Nishi-Iwaki Plant by the end of March 2027. For a long time, the two factories have been producing various chemical products. Mitsubishi Chemical stated that in recent years, in response to drastic changes in the market environment, despite efforts to streamline operations and develop new businesses, it has remained extremely difficult to achieve profitability. Therefore, it has been decided that the two plants will gradually cease operations starting March 2026, with operations being completely halted by the end of March 2027. The Kodenamegahama Plant, formerly known as Nippon Hydrogen Industry Co., Ltd., began operations in September 1937. It primarily produces ammonia and its derivatives (ammonium hydroxide), methanol, formalin, wood adhesives, fatty acid amides, and ultra-high-purity process chemicals (nitric acid, mixed acids, and ammonia solutions). The Iwaki Plant was established in October 2020 as a result of the transfer and integration of certain Mitsubishi Chemical products and the former Onomihama Distillery’s operations into Shin-Rin, focusing on the production of fine chemical products. One day later, on April 2, Mitsubishi Chemical announced its decision to withdraw from the PET bottle business, affecting two factories. Mitsubishi Chemical stated that due to the rising costs of raw materials and logistics fees in recent years, the profitability of this business is extremely poor. Although it has been seeking business restructuring measures such as cutting fixed costs, Mitsubishi Chemical believes that under the current circumstances it will be very difficult to improve profitability and achieve growth; therefore, it has decided to withdraw. Mitsubishi Chemical’s PET bottle business operates two plants, located in Hiratsuka and Asai, Japan. Production at these plants will cease at the end of December 2025, and the sale of products is scheduled to end at the end of March 2026. In recent years, Japanese companies have gradually withdrawn from traditional petrochemical businesses and are shifting toward more specialized, low-carbon, and sustainable business models. For example, Mitsubishi Chemical decided as early as the end of 2021 to withdraw from its petrochemical and coal chemical businesses over the course of a few years. Other chemical companies such as Mitsui Chemicals and Resonac Holdings have also announced strategies to restructure their petrochemical businesses, including shutting down or divesting certain operations, as well as forming partnerships with other companies.