The reorganization of the petrochemical industry began finally to move.

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The reorganization of the petrochemical industry began finally to move. Mitsubishi chemical Holdings of the domestic biggest business and Asahi Chemical Industrial Co., Ltd. in the third place announce that they will consolidate the ethylene production equipment of the Okayama Prefecture Mizushima district. Either of of the one ethylene equipment will be disposed of after the co-parent company is established by 2012 next April.

In the backdrop in which the ethylene that is a basic raw material of the petrochemical product is consolidated, the Middle East and Chinese power to operate new equipment in addition to stagnant domestic demand in succession exist.

President Kiko Kobayashi of the Mitsubishi chemical asserts, "The commodity is fought and the ethylene petrochemical product at the center cannot fight against the Middle East power with price competitive ability equally". Therefore, it worked out the withdrawal from the petrochemical product in the leaving no margin such as vinyl chloride and styrene monomer in rapid succession. The equipment integration of the Ibaraki Prefecture Kashima district is advanced one of the two this company large bases when the future.

On the other hand, Asahi Chemical Industrial Co., Ltd. assumes, "It is an inclusion under discussion to drive continuation in present production capacity" (president Shiro Hiruta), and is not declaring the withdrawal from which petrochemical product so far. However, the possibility that moderation is urged from the petrochemical product that the expansion of production of overseas power such as styrene monomer is expected seems to be high.

Sawat Masami of the Credisis bond : about the width of the reduction of the ethylene production ability by the equipment integration of both companies. 「About 400,000 tons a year in the Mizushima district. Match the Kashima district of Mitsubishi Chemical and about 820,000 tons a the greatest year」It sees.  This corresponds to about 10 percent of the substance home manufacture ability 7.7 million tons at 2008 year-end.

Still, it doesn't seem to catch up with the prevailing trend. The shipment outlook of the domestic production petrochemical product in fiscal year 2009 remains by the ethylene commutation in about 4.7 million tons (Ministry of Economy, Trade and Industry examination). There are still as many as 2.99 million-ton excess amount, and, in a word, still big gap between supply and demand remains even if tempering with this combination effect.

It has not advanced up to now in industry segments at all though the necessity of the equipment reduction has been called out. "Strength of the Japanese group mentality. "  The manufacturer that cut the van because (two Fujoshi Ta presidents of Mitsui Chemicals) and executed a drastic ability reduction did not appear.
Additionally, there is details from which it is supported by Chinese special procurements, and the problem has been extended ahead, too. However, Mitsui Chemicals also has put out the movement for the efficiency improvement of the ethylene equipment with Idemitsu Kosan Co., Ltd. in the upper part of a river or more.

It is inevitable that the reorganization time comes further because the biggest business moved to integration. Movement to offer "Not the survival but remain" (Fujoshi president) becomes strong.

http://www.toyokeizai.net/business/strategy/detail/AC/c8d71451d560e7ba4c3627e5197d8602/

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