The Mitsubishi Chemical Group (MCG) has announced its decision to cease manufacturing operations at Mitsubishi Chemical Corporation’s (MCC) Onahama Plant and Shinryo Corporation’s (Shinryo) Iwaki Plant, both located in Iwaki City, Fukushima Prefecture, by the end of March 2027. The phased closure is slated to begin in March 2026. It marks the end of decades of chemical production at these facilities.

The Onahama Plant, established in 1937 as Japan Hydrogen Industrial Co., Ltd., has a long history of producing a diverse range of chemical products like ammonia derivatives, methanol, formalin, wood-based adhesives, AdBlue, fatty acid amides, ultra-high purity process chemicals, and TAIC derivatives. Shinryo’s Iwaki Plant, established more recently in October 2020 through the integration of MCC products and the former Onahama Distillery’s business, focused on fine chemical products, TAIC and distilled products.

MCG attributed the decision to the drastic shifts in the market landscape, which have made it increasingly challenging to secure profitable operations at these plants. Despite efforts to streamline operations and attract new business, the economic pressures proved insurmountable. The closure aligns with MCG’s New Medium-Term Management Plan 2029 which emphasizes business portfolio transformation based on strict criteria: alignment with the company’s vision, competitive advantage, and growth potential. A thorough review of the Onahama and Iwaki plants against these criteria led to the decision to discontinue manufacturing.

The closure will have significant implications for the local workforce. MCG has committed to supporting affected employees through reassignment within the group and providing outplacement support to facilitate their transition. The company aims to minimize the impact on its workforce by ensuring that employees are provided with ample opportunities for continued employment within the broader MCG network.

The phased discontinuation of manufacturing will commence in March 2026, with the complete cessation of operations scheduled for the end of March 2027. This timeline allows for a structured and orderly wind-down of production, ensuring minimal disruption to customers and stakeholders.

The announcement underscores the ongoing challenges faced by manufacturing industries in adapting to evolving market dynamics. The decision reflects MCG’s strategic focus on optimizing its business portfolio and prioritizing sustainable and profitable growth in alignment with its long-term vision. The company's focus is on ensuring that it can continue to serve the market in a way that is robust and sustainable.

The closure signals a significant shift in the regional industrial landscape of Iwaki City, which has historically been a hub for chemical manufacturing.