M'bishi Chem to stop making polystyrene, PVC-paper

p>Mitsubishi Chemical Corp will exit the polystyrene and PVC businesses as early as this year due to shrinking domestic demand and intensified competition with Asian and Middle Eastern rivals, a newspaper reported. The Nikkei business daily said the move is part of a shift by the Mitsubishi Chemical Holdings Corp (4188.T) unit to advanced materials used for such products as solar cells and pharmaceuticals from commodity resins.

Mitsubishi Chemical spokesman Takuya Yorozu said the company is considering overhauling its ethylene-related operations, including possible withdrawal, but no details had been decided.

Mitsubishi Chemical will likely sell its 27.5 percent stake in PS Japan Corp, Japan's biggest supplier of polystyrene, to other shareholders of the company, Asahi Kasei Corp (3407.T) and Idemitsu Kosan Co (5019.T), for 2-3 billion yen ($20-30 million), the paper said.

For its PVC business, Mitsubishi Chemical is considering liquidating V-Tech Corp, its joint venture with Toagosei Co (4045.T), the Nikkei said.

Mitsubishi Chemical will discuss the plan with Toagosei, which owns a 14.9 percent stake in V-Tech Corp, Japan's fifth-biggest PVC maker, the paper said.

Mitsubishi Chemical said in February it would withdraw from terephthalic acid production in Japan in December 2010, citing difficulty turning around its loss-making business due to a continued decline in domestic demand.