Mitsubishi to exit petrochemical business

Following in the footsteps of other major petrochemical firms, such as DSM and Bayer, that have shed commodity chemical businesses, Mitsubishi Chemical Holdings says it plans to carve out and divest its petrochemical and coal-chemical units by its 2023 fiscal year. The petrochemical business had sales during the last fiscal year of $3.8 billion, about 13% of Mitsubishi’s total. It makes olefins and polyolefins. The coal business, which makes coke, carbon black, and synthetic rubber, had sales of $1.0 billion. Mitsubishi says the businesses face both limited growth potential and difficulties as Japan shifts toward carbon neutrality. The company says electronics and health care will be its strategic focus, though it also wants to improve the competitiveness of businesses such as methyl methacrylate and industrial gases.The carve-out plan is the first major initiative at Mitsubishi under CEO Jean-Marc Gilson, who joined the company in April after a career at firms including Dow Corning and Roquette.