Mitsubishi Chemical Group announced on March 31 it will cease operations at its Onahama and Shinryo Corp. plants in Iwaki City, Fukushima Prefecture by March 2027. The decision comes after years of unsuccessful efforts to improve profitability at the aging facilities, which produce a range of industrial chemicals facing declining market demand.
Historic Plants Face Modern Challenges
The Onahama facility, operating since 1937, manufactures ammonia derivatives, methanol, wood adhesives and process chemicals. The newer Shinryo plant, established in 2020 through business consolidation, produces fine chemicals and triallyl isocyanurate (TAIC). Despite operational streamlining attempts and diversification efforts, Mitsubishi determined both plants could no longer compete effectively in today’s chemical market.
Workforce Transition Plans Announced
Mitsubishi pledged to relocate affected employees within its corporate group while providing career transition support. The company emphasized its commitment to maintaining employment stability despite the closures. This workforce strategy reflects Japan’s traditional approach to corporate restructuring, prioritizing employee retention over layoffs where possible.
End of an Industrial Era in Fukushima
The Onahama plant’s closure marks the end of 86 years of continuous chemical production at the site, which began as Japan Hydrogen Industrial Co. before multiple corporate transitions. The Shinryo facility’s relatively short operational lifespan highlights the rapid market changes impacting specialty chemical manufacturers in recent years.
Broader Industry Trends in Chemical Manufacturing
Mitsubishi’s decision mirrors global trends in the chemical sector, where companies are consolidating operations and exiting commoditized product lines. The move allows the conglomerate to reallocate resources toward higher-growth specialty chemicals and advanced materials, while addressing overcapacity in traditional chemical manufacturing.
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