June 5, 2025 12:01

As part of its Vision 2030 strategic plan, Japanese group Mitsui Chemicals is evaluating the spin-off of its Basic & Green Materials (B&GM) operations—currently undergoing restructuring—to enable partnerships with other industry players and facilitate portfolio transformation and integration, including possible divestments.

The B&GM business under review includes polyolefins (via Prime Polymer), polyurethane feedstocks (MDI, TDI), phenols, sustainable raw materials, basic chemicals and licensing. The company expects to establish a standalone entity around 2027.

According to Mitsui Chemicals, the two business segments—Specialty Chemicals (Life & Healthcare Solutions, Mobility Solutions, ICT Solutions) and B&GM—differ significantly in terms of industrial structure, operational strategies and decision-making timelines.
While the specialty segment is targeting focused investments and the development of new businesses through acquisitions and strategic alliances, the goal for Basic & Green Materials is to build a robust green chemistry division by reorganizing operations, developing high-performance materials and transitioning to sustainable products.

The creation of an autonomous entity is seen as essential to foster global collaborations, particularly as Japan's domestic market is no longer sufficient to ensure competitiveness. Demographic decline has weakened local demand, while growing production capacity in other Asian countries is putting pressure on the supply side.

Despite current efforts to scale down naphtha cracker operations and optimize derivatives such as phenols and polyolefins, Mitsui Chemicals acknowledges that further structural adjustments will be necessary.

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