Sumitomo Chemical decides to exit caprolactam business

Sumitomo Chemical announced on April 15 that it has decided to withdraw from the caprolactam business and will close its production facility in Ehime, Japan by October 2022

Sumitomo Chemical has been producing caprolactam by the liquid phase method at its Ehime Plant since 1965, and has a history of more than 50 years

In recent years, the increase in global caprolactam production facilities, especially in China, has led to a deterioration in Sumitomo Chemical's profitability

Since then, in order to improve business conditions, Sumitomo Chemical has continued to improve technology and reduce costs

However, Sumitomo Chemical believes that cyclohexanone, the intermediate raw material of caprolactam, is expected to have a stable market environment and will continue to produce and sell

At the Ehime Plant, Sumitomo Chemical is actively working to adapt to changes in the market

According to Japanese media reports, the current global annual demand for caprolactam is 6 million tons, and the annual supply capacity is 8 million tons, showing a situation of oversupply

This is not the first time Sumitomo Chemical has withdrawn from traditional businesses

Sumitomo Chemical said that in the mid-term management plan for the 2022-2024 fiscal year starting in April, it will strengthen the profitability of technology-based businesses and promote the metabolism of business in growth markets

　　In recent years, Japan's chemical industry is accelerating its structural transformation, and exiting the traditional petrochemical business has become one of the main options