BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - Asahi Kasei (3407.T), Mitsui Chemicals (4183.T), and Mitsubishi Chemical (4188.T) have entered basic agreement to promote decarbonization and optimize production capacity for their two ethylene manufacturing facilities in western Japan. The companies applied for and were selected for the 'Fiscal 2025 Support Program for Energy and Manufacturing Process Conversion in Hard-to-Abate Industries' by the Ministry of Economy, Trade and Industry to promote initiatives such as the use of biomass feedstock as an alternative to petroleum-derived resources.
The companies have signed a basic agreement to establish a new joint operating entity for the two ethylene production facilities in western Japan, and to subsequently discontinue operations of the Asahi Kasei Mitsubishi Chemical Ethylene Corp. ethylene production facility of its Mizushima Plant in Kurashiki, Okayama Prefecture, and consolidate operations at the Osaka Petrochemical Industries, facility in Takaishi, Osaka, targeting fiscal 2030.
Utilizing the HtA Support Program, an initial facility to manufacture ethylene, propylene, and other decarbonized basic chemicals from bioethanol by applying the Revolefin technology, which is currently under development by Asahi Kasei, will be installed at the Mizushima Works of Asahi Kasei. The three companies plan to commence joint commercial production of the decarbonized basic chemicals in fiscal 2034.
On the Tokyo Stock Exchange, Asahi Kasei stock is up 0.6 percent to 1,494 yen.
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