Core Viewpoint - Recent strategic moves by Japanese chemical companies, particularly Asahi Kasei and Mitsui Chemicals, indicate a significant shift in their business operations, focusing on restructuring and transitioning towards sustainable materials to adapt to challenging market conditions [2][3]. Group 1: Mitsui Chemicals' Business Adjustments - Mitsui Chemicals is considering the spin-off of its core Basic and Green Materials (B&GM) division, aiming to establish an independent entity by around 2027 [2]. - The B&GM division includes critical production areas such as petrochemical products, basic chemicals, and polyurethane raw materials, which are essential for various industries [2][3]. - The restructuring is part of Mitsui Chemicals' long-term plan "VISION 2030," which emphasizes business portfolio transformation and strategic alliances in specialty chemicals [3]. Group 2: Market Challenges and Strategic Responses - The company faces severe profitability challenges due to declining domestic demand in Japan and increasing competition from new overseas plants [3]. - Mitsui Chemicals has announced plans to reduce the production capacity of its TDI plant from 120,000 tons/year to 50,000 tons/year by July 2025, and to close its phenol plant in Ichihara by the 2026 fiscal year due to ongoing losses [4]. - The company is also accelerating its transition to green materials, including supplying ISCC Plus certified phenol and acetone for sustainable production [4]. Group 3: Exit from Non-Core Businesses - Mitsui Chemicals has decided to exit its fully-owned subsidiary Shimonoseki Mitsui Chemicals' nitrogen trifluoride business by March 2026, citing increased competition and rising costs as primary reasons for this decision [5].