Mitsubishi Chemical Group of Japan has announced its decision to exit the coke and carbon materials business as part of the ongoing portfolio transformation in line with its medium-term management strategy.
The decision was made at the corporate executive meeting on February 2, 2026, after assessing that the business no longer offers sustainable medium- and long-term growth prospects.
Prolonged market weakness leads to withdrawal
According to the company, the global coke market remains structurally weak due to oversupply, especially due to overcapacity in China and the launch of new large-scale facilities in Southeast Asia. Despite efforts to reduce costs and restructure, profitability continues to deteriorate.
As a result, Mitsubishi Chemical Group will cease production and completely withdraw from the segment that operates within its coal-related enterprises.
Financial impact
The Group expects one-time losses of approximately 85 billion yen ($540.54 million), including:
- About 19 billion yen ($120.83 million) will be recorded as an extraordinary loss in the third quarter of fiscal year 2025-26
- About 66 billion yen ($419.65 million) related to equipment relocation and employee support costs expected in the fourth quarter
These figures have not yet been reflected in the company's previously announced annual profit.
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