Asahi Kasei and Mitsubishi Chemical plan to merge their two 500,000 t/y crackers at the Mizushiman site operated by Nishi Nippon Ethylene in Japan's Okayama prefecture.

To operate the larger facility, the two Japanese chemical majors have agreed to establish a 50:50 joint venture, Asahi Kasei Mitsubishi Chemical Ethylene Corp, which will start business in April 2016.

"After the start-up, Nishi Nippon Ethylene will perform the removal and disposal of equipment as required due to unification of the naphtha crackers," the two companies said in a statement.

Asahi Kasei Mitsubishi Chemical Ethylene will have market capital of 2 billion yen ($16 million), with sales of about 160 billion Yen.