Mitsubishi Chemical has reduced output of ethylene, a material for plastics and other industrial products, to avoid a production halt due to possible supply shortages of raw materials from the Middle East, company officials said on Monday.
The company has been producing ethylene at a reduced rate at its plant in Kamisu, Ibaraki Prefecture, since Friday, the officials said.
The decision reflected concerns that naphtha, a material used in the production of ethylene, could be in short supply amid escalating tensions in the Middle East.
Mitsubishi Chemical has already notified its major clients of the production cut.
Japanese petrochemical firms make ethylene at 12 domestic production facilities using naphtha. Ethylene is used to make a wide variety of industrial products including resin auto parts, synthetic fibers and food packaging.
Japan relied about 60% of its naphtha supply on imports as of 2024, about 70% of which came from the Middle East, according to the Japan Petrochemical Industry Association.
Among other Japanese petrochemical makers, Idemitsu Kosan has notified clients that it could suspend operations at ethylene facilities in Chiba Prefecture and Yamaguchi Prefecture, if the effective closure of the Strait of Hormuz prolongs.
Mitsui Chemicals, which makes ethylene at plants in Chiba and Osaka Prefecture, is considering increasing naphtha purchases from suppliers other than the Middle East, a company official said.
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