The Mitsubishi Chemical Group (hereafter “MCG Group”) has decided to discontinue the manufacture of products at Mitsubishi Chemical Corporation’s (MCC) Onahama Plant and Shinryo Corporation’s (Shinryo) Iwaki Plant, which are both located in Iwaki City, Fukushima Prefecture, in stages by the end of March 2027.
Mitsubishi Chemical Group will discontinue manufacturing at its Onahama and Iwaki Plants in Iwaki City, Fukushima, by March 2027.
The decision follows a review under the New Medium-Term Management Plan 2029, aiming for business transformation.
Despite efforts to streamline operations, profitability was challenging.
Employee support and reassignment will be provided.
1. Background of discontinued manufacturing
MCC’s Onahama Plant began operations in September 1937 as Japan Hydrogen Industrial Co., Ltd. (later Nippon Kasei Chemical Company Limited), while Shinryo’s Iwaki Plant was established in October 2020 as a result of the transfer and integration of a number of MCC’s products and the former Onahama Distillery’s business into Shinryo. The two plants have been engaged in the manufacture of various chemical products, and in recent years, have undertaken initiatives to streamline operations and attract new business in response to drastic changes in the market environment. Despite these efforts, however, securing profitability at these plants has become extremely difficult.
MCG Group promotes business portfolio transformation based on the three criteria for business selection (consistent with the Vision, competitive advantage, and potential for growth) set out in the New Medium-Term Management Plan 2029 that was announced in November 2024. As a result of reviewing MCC’s Onahama Plant and Shinryo’s Iwaki Plant in line with these criteria, MCG has decided to discontinue manufacturing at these two plants in stages.
2. Overview of MCC’s Onahama Plant
Location 34 Takayama, Onahama, Iwaki City, Fukushima Prefecture
Main products
- Ammonia and its derivatives (Ammonium hydroxide)
- Methanol, formalin, wood-based adhesives, AdBlue
- Fatty acid amides
- Ultra high purity process chemicals (Nitric acid, Mixed acid, Ammonia solution)
- TAIC derivatives
3. Overview of Shinryo’s Iwaki Plant
Location 312-5 Takayama, Onahama, Iwaki City, Fukushima Prefecture
Main products
- Fine chemical products
- TAIC
- Distilled products
4. Treatment of employees of these plants
MCG Group will support the employees of these plants by reassigning them within the group and providing outplacement support etc.
5. Future plan
The manufacturing of products from these plants will be discontinued in stages starting in March 2026, and fully terminated by the end of March 2027. (scheduled)
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Fibre2Fashion News Desk (HU)
