Asahi Kasei, Mitsui Chemicals and Mitsubishi Chemical Agree Equity Ratio for the Joint Operating Entity to Integrate Ethylene Production Facilities in Western Japan
2026.05.12
Asahi Kasei Corp.
Mitsui Chemicals, Inc.
Mitsubishi Chemical Corp.
Asahi Kasei, Mitsui Chemicals, and Mitsubishi Chemical had previously agreed to establish a joint operating entity among the three companies to promote decarbonization and optimization of ethylene production facilities in western Japan. The companies have now agreed to proceed with further discussions on the integration on the premise that, based on the ratio of olefin off-take volumes, the equity ratio of the joint operating entity will be 45 percent for Mitsui Chemicals, 45 percent for Mitsubishi Chemical and 10 percent for Asahi Kasei.
Ethylene production facilities are the upstream starting point of the petrochemical industry. Used across a wide range of industries, including daily necessities, automobiles and semiconductors, materials made from basic chemicals produced at these facilities form an important foundation that supports people’s lives. Against this backdrop, collaboration among multiple companies to advance decarbonization, strengthen competitiveness and transition to sustainable business structures is increasingly important.
The three companies have together been exploring measures to promote decarbonization and optimize production capacity at their ethylene production facilities in western Japan. In January 2026, the three companies signed a basic agreement premised on the establishment of a joint operating entity, under which they aim, by 2030, to discontinue the ethylene production facility at the Mizushima Plant of Asahi Kasei Mitsubishi Chemical Ethylene Corp. and consolidate operations at the facility belonging to Osaka Petrochemical Industries, Ltd., a consolidated subsidiary of Mitsui Chemicals.
Based on the premise of the equity ratio outlined above, the three companies will further advance detailed discussions on integration. Finalized details of the joint operating entity, including the equity ratio, will be determined in the joint venture agreement expected to be concluded in due course.
Through this initiative, the three companies aim to promote the decarbonization and optimization of ethylene production facilities in western Japan, thereby strengthening the competitiveness of their basic chemicals businesses and building sustainable business foundations.
