Mitsubishi Chemical Group to Exit Coke and Carbon Materials Production in Japan

Mitsubishi Chemical Group Corporation said it has decided to withdraw from its coke and carbon materials business operated by its consolidated subsidiary Mitsubishi Chemical Corporation, including needle coke and pitch coke production, at the Kagawa Plant in Sakaide, Kagawa Prefecture, Japan.

According to the company, the decision follows a review of the product group’s medium- to long-term viability under its sustainability program, KAITEKI Vision 35, and its management plan for 2029, citing persistent oversupply and weak demand in overseas coke markets, particularly driven by conditions in China and new capacity in Southeast Asia.

The withdrawal applies to coke and carbon materials produced at the Kagawa site. The company said pitch-based carbon fibers, related products and anode materials manufactured at the same plant are not included in the exit. Production of the affected products is scheduled to end in the second half of fiscal year 2027, with sales to conclude sequentially after production stops. Equipment removal is expected to begin following shutdown.

Mitsubishi Chemical Group said approximately 600 employees are currently engaged in the affected business and that support measures will be implemented as part of the withdrawal process.

In a press statement, the company said it pursued multiple operational and cost-reduction measures to improve profitability, including production scale adjustments and revisions to pricing structures, but concluded that long-term growth and competitive positioning could not be sustained under current market conditions.

The company said it will continue evaluating the impact of the withdrawal and disclose updated earnings guidance once a comprehensive review is completed.