01/09/1998

The Slow Consolidation of the Petrochemical Industry

Social Development Research Department Toru Hyakushima 

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Following the merger announced in late 1993 between Mitsubishi Kasei and Mitsubishi Petrochemical，the petrochemical industry has been restructuring at an accelerating pace. Developments include spinoffs and mergers in the general purpose resin business， and the birth of Mitsui Chemical. Nonetheless， the pace has been slow compared to Europe and the U.S.

For industry restructuring to produce higher earnings， unnecessary facilities that have been preserved need to be slashed. In the future， we should see some companies concentrating on large facilities for general purpose resin， while others will be greatly reducing their upstream ethylene facilities.

Social Development Research Department  

Toru Hyakushima

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03-3512-1797

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