February 11, 2025 13:43

Japanese chemical group UBE has announced a restructuring plan aligned with its "Vision for 2030" strategic roadmap, aiming to focus on specialty chemicals while reducing exposure to basic chemicals.
The measures primarily affect nylon production activities in Spain, Japan and Thailand.

In its home country, UBE plans to permanently shut down the production of caprolactam, cyclohexanone and polyamides by March 2027, along with ammonia and derivative production by March 2028. The Ube Chemical Factory in Japan will serve as a production and development hub mainly for specialty businesses, including polyimide, separation membranes, ceramics (silicon nitride), pharmaceuticals and high-purity chemicals.

In the European market, where it operates through UBE Corporation Europe, the restructuring will impact Spanish operations, with the closure of cyclohexanone, 1,6-hexanediol and 1,5-pentanediol production. However, the Japanese chemical group will continue producing caprolactam and polyamides in Europe, with the goal of expanding its offering of more sustainable products, such as recycled and bio-based materials.

In Thailand, by March 2027, its subsidiary UBE Chemicals (Asia) will cease production of cyclohexanone, caprolactam and ammonium sulfate, while also shutting down one of its two polyamide production lines. Additionally, UBE Fine Chemicals (Asia) will discontinue the production of 1,6-hexanediol and 1,5-pentanediol, which are byproducts of cyclohexanone. In the Thai market, the company will shift its focus to composite materials, polycarbonate diols for coatings and elastomers.

As a result of these restructuring efforts, UBE expects to record impairment losses and related costs of about 35 billion yen for the fiscal year ending March 2025, including 10 billion yen for the Ube Chemical Factory and about 25 billion yen for its Thailand base.

Meanwhile, in the specialty segment, UBE is expanding capacity with investments in polyimide production, separation membranes and C1 chemicals (DMC and EMC in North America). The company has also agreed to acquire Lanxess' polyurethane systems business in Germany.

Further updates are expected in May, when the Japanese chemical group will unveil a new midterm plan outlining its Vision for 2030 and the action plan to achieve it.

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