M'bishi Chemical says to close ethylene plant

TOKYO, June 11 Mon Jun 11, 2012 3:25am EDT

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TOKYO, June 11 (Reuters) - Mitsubishi Chemical Holdings Corp said on Monday it plans to close one of two ethylene plants in its Kashima complex in eastern Japan, as part of a push to cut 4 billion yen ($50.2 million) in annual fixed costs.

The company is closing the plant's No.1 ethylene unit, which has a capacity of 390,000 tonnes per year, in 2014. But it will boost the capacity of the plant's No.2 unit by 50,000 tonnes per year, raising it to 540,000 tonnes per year, in 2013.

Mitsubishi Chemical, seeking to cope with a stronger yen, said it will also halt its No.1 benzene plant at the Kashima complex in 2014. ($1 = 79.6150 Japanese yen) (Reporting by Mayumi Negishi; Editing by Michael Watson)

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