Maruzen Petrochemical to close Chiba ethylene unit

Maruzen Petrochemical, part of Cosmo Energy Holdings, announced plans to close its ethylene unit in Chiba during the 2026/27 financial year. The company will focus on its joint venture, Keiyo Ethylene, with Sumitomo Chemical to improve efficiency and competitiveness. The decision comes as Japanese ethylene plants face low production rates due to oversupply from China and decreasing local demand. The industry also grapples with the need to meet net-zero carbon emissions targets. Maruzen's Chiba unit, in operation since 1969, has a capacity of 525,000 metric tons per year. Keiyo Ethylene, launched in 1994, can produce 768,000 tons annually. Other companies are consolidating ethylene production in the same region.