Japan-based Mitsubishi Chemical will reduce ethylene production at its Mizushima plant by 20% to 380,000 million tpa.
The company's decision followed an agreement with Asahi Kasei to jointly operate the Mizushima steam crackers by setting up a 50:50 joint venture company.
Mitsubishi and Asahi Kasei also agreed to "adjust" the ethylene production capacities of their steam crackers, assuming a 30% fall in ethylene demand, according to platts.com.
Mitsubishi's sole naphtha-fed steam cracker in western Japan is able to produce 470 billion tpa.
The company is planning to quit the styrene monomer business in March 2011, ceasing production at its 371 billion tpa styrene monomer plant in Kashima, eastern Japan.
Under the restructuring plan, Mitsubishi also aims to exit from the vinyl business, scrapping its 391 billion tpa vinyl chloride monomer unit in Mizushima by the end of March 2011.
