Japan’s ENEOS plans permanent closure of Kawasaki cracker

According to a press release on the company’s website, Japan’s ENEOS plans to permanently shut down one of its ethylene crackers at the Kawasaki site by the end of the fiscal year ending March 31, 2028, as part of a broader strategy to streamline its supply chain and reduce fixed costs.

The company has initiated a study to optimize ethylene production and supply at the Kawasaki site, responding to weakening domestic demand and intensifying competition, particularly from China. ENEOS will also explore new business opportunities for the land and facilities affected by the shutdown while prioritizing safe operations and efficiency.

According to ChemOrbis Production News Pro, the cracker slated for closure has an ethylene capacity of 443,000 tons/year and a propylene capacity of 290,000 tons/year. The remaining unit produces 500,000 tons/year of ethylene and 300,000 tons/year of propylene. ENEOS aims to enhance operational efficiency by improving the utilization rate of the remaining cracker.