Mitsubishi Chemical to exit coke, carbon materials business at Kagawa

Mitsubishi Chemical Group Corporation has announced its decision to withdraw from the coke and carbon materials business, including needle coke and pitch coke, operated by its consolidated subsidiary Mitsubishi Chemical Corporation.

The group expects a total non-recurring loss of approximately ¥85 billion (~$544 million) linked to the withdrawal. Of this, around ¥19 billion is expected to be recorded as an extraordinary loss in the third quarter of the fiscal year ending March 2026, with the remaining ¥66 billion to be reflected as estimates in the fourth quarter results.

The move forms part of the group’s ongoing business portfolio reform under its “KAITEKI Vision 35” and Medium-Term Management Plan 2029. Despite cost reductions, pricing revisions and operational restructuring, the company said the overseas coke market remains structurally challenged due to persistent oversupply, driven by overproduction in China and new capacity in Indonesia, the company said in a release.

Coke production at the Kagawa Plant is scheduled to end in the second half of fiscal 2027, with sales to be discontinued sequentially thereafter. Products such as pitch-based carbon fibres and anode materials will continue to be manufactured at the site. About 600 employees are currently engaged in the affected business.

ALCHEMPro News Desk (HU)