Closures: Mitsubishi/PTT shut down PBS business in Thailand; Asahi Kasei to discontinue PE/SM production in Japan from 2030

After operating for almost ten years, Japan’s Mitsubishi Chemical Corporation says that it has decided to withdraw from the polybutylene succinate (PBS) business at PTT MCC Biochem Co Ltd operating in Rayong, Thailand, Mitsubishi Chemical’s affiliate jointly owned with PTT Global Chemical Public Company. 

PBS is a biodegradable plastic that decomposes into water and carbon dioxide through the action of naturally occurring microorganisms. PTT MCC Biochem commenced commercial production of BioPBS in 2017, and the product has been adopted in applications such as coatings for paper cups and coffee capsules.
However, it adds that the PBS business has continued to suffer from low profitability due to various factors, including a divergence between actual market conditions and initial assumptions.

After careful consideration of future prospects, Mitsubishi says it has concluded that achieving sustainable growth in this business will be difficult and has therefore decided to withdraw from the business. Following the dismantling of its production facilities, PTT MCC Biochem company will be dissolved and liquidated in accordance with applicable local laws and regulations.

The plant scheduled for decommissioning had a production capacity of 20,000 tonnes/year. Production was terminated last December and sales will end once stock runs out, it added. After the production facilities have been dismantled, the PTT MCC Biochemjoint venture will be dissolved and liquidated in accordance with local laws and regulations. 

In other news, Japan’s Asahi Kasei, has announced plans to streamline operations at its Mizushima Works by fiscal 2030. It adds that there will be no immediate impact on the company’s supply of derivative products. The businesses covered by this initiative recorded revenue of ¥116.2 billion in fiscal year 2025, compared with ¥1,306.2 billion for the Material segment overall.

These measures, targeted for completion by fiscal 2030, align with the previously announced cessation of ethylene production at Asahi Kasei Mitsubishi Chemical Ethylene Corp. (AMEC), further advancing the company’s efforts to enhance capital efficiency and strengthen long-term profitability.

Asahi Kasei’s discontinuation of these derivatives and realignment of its supply chain form part of a broader initiative to streamline its Material sector portfolio and enhance capital efficiency.

It says that these measures are intended to exit businesses where profitability has become inherently challenging and to restructure the related supply chains within the global petrochemical markets. This is expected to improve margins and reduce cash outflows associated with maintaining these operations, enabling the strategic reallocation of capital toward higher-value opportunities.

Asahi Kasei says it is improving capital efficiency and accelerating earnings by converting past growth investments into tangible returns. To support this, the company is implementing structural reforms that channel resources to its key growth pillars—pharmaceuticals, critical care, overseas homes, and electronics.

Recent actions such as entering a basic agreement with Mitsui Chemicals and Mitsubishi Chemical to promote the decarbonisation of ethylene production in western Japan, and acquiring Aicuris to strengthen its specialty pharma platform in severe infectious diseases, demonstrate Asahi Kasei’s disciplined execution of this strategy and reinforce the foundation for sustained, profitable growth.

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