Japan-based Mitsubishi Chemical Group Corporation has announced that it has decided to withdraw from its coke and carbon materials business as part of its ongoing portfolio transformation under its medium-term management strategy.
The decision was approved at a corporate executive meeting on February 2, 2026, following an assessment that the business no longer offers sustainable medium- to long-term growth prospects.
Prolonged market weakness drives exit
According to the company, the global coke market has remained structurally weak due to oversupply, particularly from excess production capacity in China and the start-up of new large-scale facilities in Southeast Asia. Despite cost-reduction and restructuring efforts, profitability has continued to deteriorate.
As a result, Mitsubishi Chemical Group will cease production and fully exit the segment, which is operated under its coal-related businesses.
Financial impact
The group expects non-recurring losses of approximately JPY 85 billion ($540.54 million), including:
- Around JPY 19 billion ($120.83 million) to be recorded as an extraordinary loss in the third quarter of FY 2025-26
- About JPY 66 billion ($419.65 million) related to equipment removal and employee support costs, expected in the fourth quarter
These figures have not yet been reflected in the company’s previously announced full-year earnings forecast.
The move highlights Mitsubishi Chemical Group’s broader strategy to refocus on businesses with stronger long-term growth potential and reduced exposure to cyclical commodity markets.
