Core Viewpoint - Mitsubishi Chemical announced its exit from the coking and carbon materials business operated by its subsidiary, which includes needle coke and pitch coke products, due to a prolonged downturn in the overseas coking market [1] Group 1: Business Exit Details - The company expects a non-recurring loss of approximately 85 billion yen from this business exit [1] - Production of related products is scheduled to cease in the second half of 2027, with sales gradually reducing and equipment to be dismantled promptly after production halts [1] - The exited business generated revenue of 115.7 billion yen for the fiscal year ending March 2025 and employed around 600 staff as of February 2, 2026 [1] Group 2: Market Conditions - The decision to exit is attributed to a persistent slump in steel demand and oversupply in the global coking market, leading to a supply-demand imbalance [1] - The carbon materials production system is closely tied to coke oven operations, meaning that the cessation of coke production will directly impact the cost structure of the carbon materials business [1] - Given the ongoing oversupply and weak demand in the industry, Mitsubishi Chemical believes that stopping coke production is the most viable development option [1] Group 3: Strategic Shift - In recent years, Mitsubishi Chemical has accelerated its exit from traditional petrochemical businesses, having decided at the end of 2021 to phase out oil and coal chemical operations over several years [1] - The company has also announced exits from the PET bottle business and has undertaken a series of restructuring actions, including the closure of the Mitsubishi Chemical Shimonoseki and Shinryo Hama factories [1]