Mitsui Chemicals Considers Splitting Basic & Green Materials Unit
Mitsui Chemicals has announced it is considering splitting off its Basic & Green Materials (B&GM) business. The move aims to strengthen the company’s business structure and accelerate the transition to a green society.
The consideration forms part of Mitsui Chemicals’ long-term management plan, VISION 2030, which seeks to transform the company’s business portfolio. While the company continues to invest and develop its specialty chemicals domains—such as Life & Healthcare Solutions, Mobility Solutions, and ICT Solutions—B&GM remains a core segment supporting Japan’s industrial competitiveness, economic security, and carbon neutrality by stabilizing energy supplies and providing key materials to industries, including automotive and semiconductors.
However, B&GM faces a challenging business environment, with declining domestic demand due to Japan’s shrinking population and increased overseas competition from new large-scale plants. Mitsui Chemicals has already begun restructuring efforts, including downsizing naphtha crackers and enhancing derivatives like phenols and polyolefins, but recognizes the need for further structural improvements.
Scope and Vision for the New Entity
The scope of the split under consideration includes businesses such as phenols, industrial chemicals, sustainable feedstocks, licensing, Prime Polymer (polyolefins), and polyurethanes. The company envisions transforming B&GM into a strong, self-sustaining business entity through collaboration and integration with other companies. The objectives for the new entity are:
- Advancing the shift to green chemicals
- Developing high-performance materials to meet customer needs and improve quality of life
- Strengthening competitiveness and product development to rival imports
- Contributing to Japan’s economic security and related challenges
Timeline and Next Steps
Mitsui Chemicals plans to establish the new business entity by around 2027. The split is intended to enable faster, sector-specific management decisions and to facilitate investments in green chemicals and related projects, leveraging the new entity’s own cash flow. This initiative is expected to serve as a foundation for future integration and transformation in the sector.
