Mitsubishi Chemical will withdraw from its coke and carbon materials business

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On February 2, Mitsubishi Chemical announced its withdrawal from the coke and carbon materials business operated by its subsidiary, Mitsubishi Chemical Coal Division, which includes products such as needle coke and pitch coke. 　　The company estimates that this withdrawal from the business will result in a one-time loss of around 85 billion yen. Production of related products is scheduled to cease in the second half of 2027; after production stops, sales will gradually decline, and the equipment will be removed as soon as possible following the shutdown. 　　It is reported that this discontinued business generated revenue of 115.7 billion yen in the fiscal year ending March 2025, and had around 600 employees as of February 2, 2026. It is worth noting that products such as asphalt-based carbon fibers and anode materials manufactured at its Kagawa factory are not affected by this business adjustment. 　　Mitsubishi Chemical stated that this decision was driven by the ongoing weakness in the overseas coke market: due to persistent weak demand for steel and excess capacity of competing products, the global coke market is facing a supply surplus. Furthermore, the carbon material production system is closely linked to the operation of coke ovens; a halt in coke production will directly affect the cost structure of the carbon material business. Against the backdrop of an unchanging situation of oversupply in the industry and weak demand, Mitsubishi Chemical believes that stopping coke production is the most viable course of action.