Mitsui Chemicals Gears Up for Osaka Cracker Ethylene Plant Restart This October

Osaka Petrochemical Industries, Ltd. (OPC), a wholly owned subsidiary of Mitsui Chemicals, Inc., has revised the timeline for the repair and maintenance of its Ethylene plant, which had previously faced delays in restarting production. After a thorough review of the necessary processes, the company has announced that the plant is now scheduled to resume operations in October. This update marks a critical step towards restoring full production capacity, ensuring that OPC can continue to meet market demands and maintain its competitive edge in the industry.

To address the unexpected delay in restarting the ethylene plant, Osaka Petrochemical Industries, Ltd. (OPC) is taking proactive steps to ensure a stable and reliable supply chain for its customers. The company has initiated strategic measures to minimize disruptions, including reallocating ethylene production from its Ichihara Plant and securing additional supplies from external sources. These efforts are designed to mitigate the impact on customers’ operations, ensuring they continue to receive the necessary products without significant interruptions. OPC remains committed to closely monitoring the situation and providing unwavering support throughout this period.

The delay in the ethylene plant's restart is expected to have a significant financial impact on OPC's business performance. The company estimates a revenue loss of approximately 7 billion yen for the first half of the fiscal year, reflecting the operational challenges and the costs associated with the contingency measures put in place to support customers. The financial impact for the second half of the year is currently under review. OPC is carefully analyzing the potential long-term effects and will incorporate these findings into the second-half performance forecast, which will be communicated during the release of the first-half financial results. The company remains focused on minimizing the financial repercussions while maintaining strong operational performance going forward.

Osaka’s ethylene plant with a substantial production capacity of 455,000 tons per year. This plant plays a critical role in OPC's operations, contributing significantly to the company's output of ethylene, a key raw material in the production of various petrochemical products. The plant's capacity underscores OPC's ability to meet the demands of its customers across diverse industries, including plastics, chemicals, and synthetic materials, reinforcing its position in the global petrochemical market.

Mitsui Chemicals, Inc. is a global chemical company established in 1997 with headquarters in Tokyo. The company operates in three primary business segments: Life & Healthcare Solutions, Mobility Solutions, and ICT Solutions. Their product portfolio includes specialty chemicals, food ingredients, medical devices, elastomers, composite materials, semiconductor materials, optical materials, lithium-ion battery materials, and high-performance packaging materials. Mitsui Chemicals is committed to providing innovative solutions that address the evolving needs of various industries while prioritizing sustainability and environmental responsibility.