Mitsubishi Chemical to Exit PBS Biopolymer Production

Mitsubishi Chemical Corporation has decided to withdraw from the polybutylene succinate (PBS) business at PTT MCC Biochem, its jointly owned affiliate with PTT Global Chemical Public Company. The production asset in Rayong Province,Thailand will shut down in December 2025 and sales will end once stock runs out. The GS Pla (Green and Sustainable Plastic) brand of PBS was launched in 2003 with 3,000 tonnes/year of capacity.

PBS is a biodegradable plastic that decomposes into water and carbon dioxide through the action of naturally occurring microorganisms. PTT MCC Biochem commenced commercial production of BioPBS in 2017, and the product has been adopted in applications such as extrusion coatings for paper cups and coffee capsules.

However, the PBS business has continued to suffer from low profitability due to various factors, including a divergence between actual market conditions and initial assumptions. After careful consideration of future prospects, Mitsubishi Chemical has concluded that achieving sustainable growth in this business will be difficult and has therefore decided to withdraw from the business. Following the dismantling of its production facilities, PTT MCC Biochem will be dissolved and liquidated in accordance with applicable local laws and regulations.

Chinese competition

Chinese manufacturers dominate large-scale production, and their relative competitiveness was likely one of the main reasons for Mitsubishi Chemical's exit. They include Hexing Chemical (Anhui) with 10,000 tonnes/year capacity, Xinfu Pharmaceutical (Hangzhou) with 20,000 tonnes/year capacity, IPC-CAS (5 tonnes/year), Kingfa (1,000 tonnes/year for polybutylene succinate adipate (PBSA)), and Hangzhou Peijin Chemical.