Japan Polypropylene Corp. will close two relatively old polypropylene plants in 2011 to reduce costs, the company announced late Thursday. The company will shut a 90,000 mt/year PP plant at Kashima, Ibaraki Prefecture, in May 2011. The plant has been in operation since 1970. Then, in June, it will bring down a 79,000 mt/year plant in Ichihara, Chiba Prefecture, which had been operated since 1967. A company s
ource said Friday that as demand
in the domestic market was falling for PP, the company had to restructure its operations to enhance the competitiveness of its PP, and the closure of these two plants would be in line with that. The plants would be scrapped, the source said. Japan Polypropylene is owned by Japan Polychem (65%) and Chisso (35%). Japan Polychem is a wholly owned subsidiary of Mitsubishi Chemical. Japan Polypropylene currently has 11 PP plants in Japan with a total capacity of 1.244 million mt/year.