Japan’s Resonac to optimize petchem business

Japanese petrochemical producer Resonac plans to optimize part of its petrochemical business by creating a new wholly-owned subsidiary by 1 August.

Resonac decided on 23 July to set up Crasus Chemical, which will take over production of basic petrochemical goods from Resonac. It aims to set up the subsidiary as an independent, listed company to clarify and facilitate performance evaluations and to simplify a chain of command to speed up decision making. Resonac plans to achieve quicker decarbonization of its petrochemical production and to enhance competitiveness and profit growth.

Crasus will be in charge of manufacturing and selling basic petrochemical goods like ethylene and propylene, goods made from acetic acid and synthetic resins. Resonac owns the 618,000 t/yr Oita ethylene cracker in south Japan's Oita prefecture that will will also be transferred to Crasus. Petrochemicals has accounted for around 20pc of Resonac's sales revenues.

Japan's petrochemical firms have attempted to optimize their businesses with intensifying international competition and shrinking domestic demand. Mitsubishi Chemical has also tried to reorganize its basic petrochemical business, although it has yet to announce firm plans.

By Nanami Oki