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Ethylene Production Optimization in the Chiba Area scheduled for completion in fiscal year 2026.

April 1, 2025

Sumitomo Chemical Co., Ltd. and Maruzen Petrochemical Co., Ltd. (a subsidiary of Cosmo Energy Holdings Co., Ltd.) have announced a significant change to their ethylene production operations in the Chiba area. Maruzen Petrochemical will shut down its own ethylene production facilities by fiscal 2026, and all ethylene production will be consolidated at Keiyo Ethylene Co., Ltd. Keiyo Ethylene is a joint venture between Maruzen Petrochemical, which holds a 55% ownership stake, and Sumitomo Chemical, which holds 45%. The shareholding ratio will remain the same after the consolidation.

This move comes in response to several challenges facing the industry, including a global oversupply of ethylene due to new, large-scale plants in China, as well as declining domestic demand for ethylene in Japan. Both companies recognize the need to improve operating rates, lower costs, and reduce CO₂ emissions to remain competitive.

By consolidating production at Keiyo Ethylene, which is Japan’s most advanced and largest ethylene facility, Sumitomo Chemical and Maruzen Petrochemical aim to increase the operating rate and competitiveness of the Chiba petrochemical complex. The consolidation is also expected to lower fixed costs and advance green transformation initiatives, supporting the companies’ efforts to achieve net zero carbon emissions.

The Maruzen Chiba Plant, operated by Maruzen Petrochemical since April 1969, currently has a capacity of 525,000 tons per year (or 480,000 tons during repair years). Keiyo Ethylene, which began operations in December 1994, has a capacity of 768,000 tons per year (or 690,000 tons during repair years). The optimization and consolidation of ethylene production are targeted for completion by fiscal year 2026.

Overall, this consolidation is designed to ensure the long-term competitiveness and sustainability of the Chiba petrochemical complex by focusing production at the most efficient site and supporting environmental goals.


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