Mitsui Chemicals, Inc. has announced its decision to transfer its entire 50% stake in Shanghai Sinopec Mitsui Chemicals Co., Ltd. (SSMC) to joint venture partner Sinopec Shanghai Gaoqiao Petrochemical Co., Ltd., a wholly owned subsidiary of China Petrochemical Corporation (SINOPEC). The move comes amid continued efforts by Mitsui Chemicals to streamline its Basic & Green Materials (B&GM) portfolio and pivot toward green chemistry.
The transfer, approved by the company’s board of directors on June 24, is scheduled to be formalised by the end of June 2025, with the transaction to be completed by October.
Established in 2006, SSMC manufactures and markets phenol and its derivatives, including acetone, bisphenol A, and cumene. The equity method affiliate had been a 50:50 joint venture between Mitsui Chemicals and Gaoqiao Petrochemical. However, Mitsui’s decision to divest follows years of declining profitability in the phenols business, exacerbated by a shrinking Japanese domestic market and overcapacity from large overseas plants.
As part of its transformation strategy, Mitsui has committed to downsizing its naphtha cracker operations and shutting its phenol facility at the Ichihara Works by the end of October 2025. Last year, the company divested its phenol operations in Singapore, and this latest decision marks another step in optimising its global footprint.
A Mitsui Chemicals spokesperson said the decision was driven by cost competitiveness and alignment with existing infrastructure, with Gaoqiao Petrochemical positioned as the most suitable long-term owner.
The exit from SSMC will not affect the company’s consolidated financial outlook for the fiscal year ending 31 March 2026. Mitsui Chemicals will continue its collaboration with Gaoqiao through their other joint venture, Shanghai Sinopec Mitsui Elastomers Co., Ltd., which produces ethylene-propylene terpolymer (EPT) in China.
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