Japan Polyethylene to scrap HDPE production line

Japanese petrochemical producer Japan Polyethylene plans to scrap a high-density polyethylene (HDPE) manufacturing line by May next year at its Mizushima plant, citing intensifying competition and shrinking demand.

Japan Polyethylene decided to permanently shut one of two HDPE production lines at Mizushima in west Japan's Okayama prefecture. The production line to be scrapped manufactures 31,000 t/yr of HDPE. It also shut permanently the 62,000 t/yr LDPE production line at Kashima in east Japan's Ibaraki prefecture in May 2021.

It cited growing international competition, especially in Asia with new production facilities, and shrinking demand on the back of rising commodity prices as behind its decision to shut the HDPE line.

The company will focus on high-performance petrochemical production. It has acquired International Sustainability and Carbon Certification at Mizushima and Kashima to incorporate recycled and biomass-based feedstock to generate low-carbon products.

The company is owned 58pc by Mitsubishi Chemical's 100pc subsidiary Japan Polychem and 42pc by petrochemical firm Japan Polyolefine that is a joint venture of refiner Eneos and petrochemical firm Resonac.

By Nanami Oki