We are committed to building a framework that will serve as a cornerstone business while supporting the Mitsui Chemicals Group as a whole. To this end, we will put in place a stable earnings foundation based on the competitive advantage our domestic facilities give us and our proven ability to capture Asian market share in value-added fields.

Business Vision

Basic Materials Mission

In the Basic Materials Business Sector, Mitsui Chemicals provides materials across such wide-ranging fields as automobiles, housing, consumer electronics, infrastructure, and food packaging. Every effort is being made to forge a presence in Asia and to secure stable profits by providing distinctive technologies and high value added products while further reinforcing cost competitiveness.
Over the past several years, the Basic Materials Business Sector has undertaken a major restructuring of its activities, including substantial cutbacks in production capacity.

Business Vision

We are substantially improving our earnings structure though steady restructuring.
Moreover, we are working diligently to improve the operational stability and profitability of ethylene, a basic raw material for petrochemical products. Specifically, we are expanding sales of EVOLUE, a core product in our high-value-added polymer lineup.
Despite the cloud of uncertainty that continues to hover over petrochemicals supply and demand, we adhere strictly to a policy of rationalization, make every effort to add value to our derivatives lineup, and maintain our high utilization rate in line with the growing trend toward local production for local consumption. As a result, we are putting in place a stable earnings platform that is resilient to changes in the external environment, including shifts in market conditions and the balance between supply and demand.

Market Analysis and Strategic Issues

Opportunities & Risks

  • Infusion of U.S. shale oil- and Chinese coal chemical-derived production
  • Bulk and commodity product price volatility in Asia
  • Influx of imported products and worsening export terms due to the strong yen
  • Surging crude oil prices
  • Shrinking domestic demand and slowing Chinese economic growth
  • Shift in the market toward high-performance packaging
  • Rising need for eco-friendly products


  • Domestic production structure based naphtha cracker facilities located in two sites (one east, one west)
  • Metallocene and other polyolefin catalytic technologies
  • Robustly cost competitive polyurethane system business with a growing global facility network underpinned by the establishment of Mitsui Chemicals & SKC Polyurethanes Inc.
  • An expanding lineup of unique, differentiated products


  • Expanding value-added fields using polyolefin catalytic technologies
  • Accelerating global expansion of new system houses by leveraging synergies with Mitsui Chemicals & SKC Polyurethanes Inc.
  • Establishing a stable earnings structure by business restructuring

Strategic Product Lineups

Main Products


Ethylene, Propylene, High density polyethylene, Metallocene linear low density polyethylene (EVOLUE), Linear low density polyethylene, Polypropylene, Olefin polymerization catalysts

Basic Chemicals

Phenol, Bisphenol A, Acetone, Isopropyl alcohol, Methyl isobutyl ketone, Purified terephthalic acid, PET resin, Ethylene oxide, Ethylene glycol, Hydroquinone, Meta/Para-cresol, Ammonia, Urea, Melamine, Semiconductor gas

Polyurethane Raw Materials


Departments and Products

Phenols Division
PTA & PET Division
Industrial Chemicals Division
Petrochemical Feedstocks Division
Licensing Division
Prime Polymer Co., Ltd.
Mitsui Chemicals & SKC Polyurethanes

Fiscal 2017 Business Overview

Focusing on petrochemicals and basic chemicals, the Group maintained high-capacity operations at its naphtha crackers and other plants due to strong domestic demand while continuing to progress with business structure improvement. Sales of polyethylene and polypropylene remained firm, backed by domestic demand. As for phenols, overseas market conditions were stronger than the previous fiscal year, and efforts to promote structural business reforms are bearing fruit. The Group also worked to ensure greater competitiveness by cutting costs and expanding its lineup of differentiated products.

Increase/Decrease in Operating Income

Increase/Decrease in Operating Income

¥38.9 billion (+¥0.4 billion year on year)
Volume ¥(0.2) billion

  • Stable sales of each product

Terms of trade  +¥1.9 billion

  • Market price, etc.

Costs  ¥(1.3) billion

  • Scale difference of regular maintenance, etc.

Sales by Product

Sales by Product

Sales by Region

Sales by Region

Trends in Net Sales and Operating Income

Trends in Net Sales and Operating Income

Fiscal 2025 Target

Operating income:¥30.0 billion

The impact of the expansion of facilities for polyethylene and other production derived from shale gas and Chinese coal chemicals is expected to be felt in Asia from mid-2018. Nevertheless, we will look to build a Basic Materials business that has a strong presence in the Asian market by reinforcing our cost competitiveness and shifting to high-value-added products.

Growth Strategies
  • We aim to further increase earnings by expanding our lineup of highly profitable differentiated products and derivatives.
  • We plan to further enhance our competitiveness by establishing a local production for local consumption system and an optimal production system for bulk and commodity products.
Investment Strategy
  • We will actively pursue capital investment aimed at further enhancing our competitiveness.
Fiscal 2018 Plan

In petrochemicals, operating rates are expected to remain at high levels for naphtha cracker and derivatives facilities on the back of firm domestic demand. With regard to our overseas bases, sales of EVOLUE have been sound since the start of commercial operations at a facility in Singapore in fiscal 2016. Looking ahead, operating rates are anticipated to increase.
In the basic chemicals and polyurethanes, we expect to post stable earnings. This largely reflects successful efforts to put in place an optimal production system and a structure that is resilient to changes in market conditions.

TOPICS - The Tireless Efforts at Our Works

Responding to concerns about the import of U.S. shale-derived petrochemical products and other developments in the petrochemicals market, Mitsui Chemicals worked hard to reinforce the earnings base of its naphtha crackers by drafting and executing profit enhancement measures focused mainly on supply chain revisions and strategies for leveraging opportunities and corporate strengths. In addition, we achieved stable operations, cost reductions, and technological innovation of our works.

1. Operating naphtha crackers at full capacity

Our capacity utilization rates exceed the national average and significantly contribute to our stable earnings.

Mitsui Chemicals capacity utilization rate

2. Dramatically reducing costs and CO2 emissions

We realized steep cost reductions through our diligent rationalization efforts.

3. Using revolutionary energy-saving technologies

We possess the world’s most advanced energy-saving technologies.
We were included in the first round of the Top Ten Energy Efficiency Best Practices List compiled by the International Partnership for Energy Efficiency Cooperation (IPEEC). The case was titled, “Large-scale Energy Conservation at the Ethylene Plant by using LNG Cold Energy.”

Introduction to Blue Value and Rose Value Products

Blue Value Environmental contribution value
Rose Value QOL improvement value
Blue Value

Exhaust gas (NOx) reduction agent


  • Reduce CO2
  • Harmonize with nature

Reduce NOx emissions
Contribute to fuel conservation

*AdBlue is a trademark of the VDA (Verband der Automobilindustrie)

Blue Value

Seat cushion material


  • Reduce CO2
  • Protect resources

Reduce fossil fuel resource consumption through use of bio-based raw materials