Mitsubishi to spin off its petrochemical and coal-chemical units, including carbon black

Mitsubishi Chemical Holdings plans to carve out and divest its petrochemical and coal-chemical units by its 2023 fiscal year, according to Bloomberg. The petrochemical business had sales during the last fiscal year of $3.8 billion, about 13% of Mitsubishi’s total. It makes olefins and polyolefins. The coal business, which makes coke, carbon black, and synthetic rubber, had sales of $1.0 billion, according to C&E News. This segment includes two carbon black plants in Japan. Mitsubishi says the businesses face both limited growth potential and difficulties as Japan shifts toward carbon neutrality. Going forward, the company will focus on electronics and health care, along with businesses such as methyl methacrylate and industrial gases.The carve-out plan is the first major move from Mitsubishi’s new CEO Jean-Marc Gilson, who joined the company in April.