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Mitsubishi Chemical announces withdrawal from petrochemical and coal chemical industries – Author/Source: Sinochem News Network – Date: 12-06-2021 – Clicks: 7. The Japanese chemical industry giant Mitsubishi Chemical has decided to withdraw from its petrochemical and coal chemical businesses in the coming years, thereby helping to steer the country’s basic chemical industry toward carbon neutrality. On December 1, Mitsubishi Chemical Holdings Corporation announced a new business policy titled \"Forging the Future,\" which covers the period up to the end of fiscal year 2025. Mitsubishi Chemical aims to continuously create value for its stakeholders through a clearer strategy, in order to drive excellent operations and unlock the growth potential of its business. As Japan takes action to reduce greenhouse gas emissions, Mitsubishi Chemical Holdings has decided to withdraw from its petrochemical and coal chemical businesses, which will be spun off by the fiscal year 2023. Mitsubishi Chemical has not clarified how these businesses will be exited. According to foreign media reports, “in the medium term, our goal is to completely withdraw from these businesses.” ”Gilson, the foreign CEO of Mitsubishi Chemical Holdings, said at a briefing that rising energy costs will drive consolidation in Japan’s chemical industry. He said that these businesses might first merge with another Japanese company, after which Mitsubishi Chemical would exit through a sale or an initial public offering. In the future, Mitsubishi Chemical will focus its strategies on electronics, health, and life sciences, while further enhancing its competitiveness in areas such as functional materials like chemicals, polymers, films, and molded materials. Meanwhile, as part of its efforts to formulate future management policies, Mitsubishi Chemical has allocated 1.9 trillion yen (16.7 billion dollars) for the group’s capital expenditures. By fiscal year 2025, approximately 750 billion yen of this amount will be allocated to \"growth capital expenditures\", while 570 billion yen will be used for research and development. Mitsubishi Chemical states that by fiscal year 2025, it will achieve annual cost savings of over 100 billion yen through a series of strategic cost transformation measures. Last year, Japan pledged to achieve net-zero carbon emissions by 2050, and the country’s major chemical companies have successively announced measures to reduce greenhouse gas emissions and achieve carbon neutrality. Recently, Mitsubishi Chemical Holdings Corporation (MCC) formulated policies aimed at achieving carbon neutrality by 2050. To achieve the above objectives, equipment investment of around 100 billion yen is expected to be made by 2030.