Home / Knowledge / News / Textiles / Sumitomo to shutdown Chiba ethylene plant in 2015
Sumitomo to shutdown Chiba ethylene plant in 2015
Feb '13
Sumitomo Chemical has decided that it will close down an ethylene plant at its Chiba Works located in Ichihara, Chiba, Japan, in or before September 2015 when the next periodic shutdown maintenance will take place, to reinforce the competitiveness of its petrochemical operation at the Chiba Works, the Company’s stronghold for petrochemical business in Japan.

After the closure of the ethylene plant, Sumitomo Chemical will procure necessary quantities of ethylene and other basic petrochemical feedstock by increasing purchases from Keiyo Ethylene Co. (Keiyo Ethylene), a joint venture among Maruzen Petrochemical Co. (Maruzen Petrochemical), Mitsui Chemicals Inc. (Mitsui Chemicals) and Sumitomo Chemical.

In recent years, Japan's petrochemical industry has constantly been faced with the difficult business environment due mainly to a decline in domestic demand and an increase in imports. This basic trend is expected not to change much in the years ahead.  Given the situation, Sumitomo Chemical believes that its domestic petrochemical business can only be enhanced and stay sustainable by further curtailing costs and augmenting lines of higher value-added products.

Sumitomo Chemical’s ethylene plant has been in operation for longer than 40 years now, and its competitiveness is falling behind in terms of energy efficiency, and maintenance and repair costs to be incurred. In addition, a decrease in domestic demand is growing conspicuous for some of general-purpose ethylene derivatives over the past years. In light of the aging of its ethylene plant and the structural changes taking place in domestic demand, Sumitomo Chemical has been examining various possible measures and opportunities to optimize the operation of its Chiba Works.

As a result, as far as ethylene and other basic petrochemical feedstock are concerned, the Company has determined it most prudent to cease producing them by itself by the time of the next periodic shutdown maintenance of the Chiba Works and thereafter procure all of its requirements of ethylene and other basic petrochemical feedstock from Keiyo Ethylene, which operates the newest and largest production facilities in Japan.

With respect to such increased supply of ethylene and other basic petrochemical feedstock from Keiyo Ethylene, Sumitomo Chemical has agreed in principle with Maruzen Petrochemical and Mitsui Chemicals that Sumitomo Chemical’s allocation of the supply will be raised to accommodate its requirements..

The closure of the ethylene plant will enable Sumitomo Chemical to procure ethylene and other basic petrochemical feedstock more efficiently while at the same time reducing fixed costs by streamlining related ancillary facilities. 

Going forward, Sumitomo Chemical will continue to look into ways to optimize production facilities at the Chiba Works for some of the ethylene derivatives, including possibilities of plant closure. In a broader perspective, the Company will work to strengthen its entire global petrochemical business, including operations at production bases in Saudi Arabia and Singapore, along with the ongoing restructuring of the Chiba Works.

A possible impact of the ethylene plant closure on the Company’s financial performance will be announced as soon as it becomes available.

Sumitomo Chemical

Must ReadView All

Courtesy: Myntra

Apparel/Garments | On 3rd Dec 2016

Myntra to be EBITA positive by FY18: CEO Narayanan

Myntra is on track to achieve sustainable growth and be EBITA...

Courtesy: India ITME Society

Textiles | On 3rd Dec 2016

India ITME 2016 opens with over 1050 exhibitors

The India International Textile Machinery Exhibition (India ITME)...

Courtesy: Bruckner

Textiles | On 3rd Dec 2016

Indian textile companies opt for Brückner stenter lines

Indian textile firms Laxmipati Sarees, makers of polyester sarees and ...

Interviews View All

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search