Mitsubishi Chemical to Exit Biodegradable Plastics Business in Thailand

Mitsubishi Chemical on May 12 announced plans to withdraw from the polybutylene succinate (PBS) business operated by PTT MCC Biochem Co., Ltd., its joint venture with PTT Global Chemical in Thailand. The company said the decision follows continued low profitability and changing market conditions that differed from initial business assumptions.

PTT MCC Biochem began commercial production of BioPBS biodegradable plastics in 2017 at its manufacturing facility in Rayong Province, Thailand. According to the company, the material has been used in applications including coatings for paper cups and coffee capsules. Mitsubishi Chemical said production ended in December 2025, with sales continuing until remaining inventory is depleted. The company added that the joint venture will be dissolved and liquidated following the dismantling of production facilities.

PBS is a biodegradable plastic designed to decompose into water and carbon dioxide through microbial activity. Mitsubishi Chemical said it determined that long-term sustainable growth in the business would be difficult under current market conditions.

The announcement follows several recent restructuring moves by Mitsubishi Chemical Group. Earlier this year, the company announced plans to withdraw from its coke and carbon materials business at the Kagawa Plant in Japan, citing oversupply and weak global demand conditions, particularly in China and Southeast Asia. Production of needle coke and pitch coke at the site is expected to end in fiscal year 2027.

Mitsubishi Chemical has also been involved in broader petrochemical restructuring efforts. In January, the company joined Asahi Kasei and Mitsui Chemicals in announcing plans to consolidate ethylene production operations in western Japan while advancing development of bioethanol-based olefin technologies as part of a decarbonization strategy. According to the companies, ethylene production will be consolidated at the Osaka Petrochemical Industries facility by fiscal 2030.