Kawasaki refinery aerial view @ENEOS Corporation

ENEOS to Restructure Petrochemical Operations with Planned Shutdown of Kawasaki Ethylene Unit by 2027

Tokyo | Feb 26, 2025 -- ENEOS Corporation has announced that it will begin considering ways to optimize its petrochemical production and supply network, with the expectation that one of its two ethylene production units at the Kawasaki Refinery Plant in Kawasaki City, Kanagawa Prefecture will be shut down. This decision is part of ENEOS’s Third Medium-Term Management Plan, which aims to establish a solid earnings base and strengthen the competitiveness of its petroleum refining and marketing operations. Safe operations and a stable supply of energy remain key priorities for the company.

The Japanese petrochemical industry is currently facing a structural decline in domestic demand for its products, as well as intense international competition, particularly from other Asian countries. The construction of new petrochemical plants, especially in China, has led to an oversupply situation, forcing existing ethylene production units in Japan to operate at lower rates. As a result, the industry is under significant pressure.

The ethylene production unit scheduled for termination is located in the Ukishima South Area of the Kawasaki Refinery Plant, with the shutdown planned for the end of fiscal year 2027. The Kawasaki Refinery Plant currently operates two ethylene production units: the Ukishima North Area unit, which began operations in 1971 and has a production capacity of 540,000 tons per year, and the Ukishima South Area/Kawasaki Area unit, which started in 1970 and has a capacity of 448,000 tons per year.


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