OREANDA-NEWS. Mitsui Chemicals, Inc. and Idemitsu Kosan Co.,Ltd. announced closing of the phenol plant at their Chiba Phenol, Co., Ltd. (hereinafter "CPH") joint venture.

Sales slumps in domestic phenol and deterioration in export profitability due to oversupply from new facilities in Asia compelled the two companies to reduce production and realign phenol operations.

The two companies held discussions on impact and management of CPH. Through the discussions, Mitsui Chemicals and Idemitsu concluded closure of CPH's phenol plant in a prospect September 30, 2014.

Following the closure, Mitsui Chemicals will meet Idemitsu's phenol needs by providing in-house produced phenol. The two companies will take actions to intensify cost competitiveness in their respective phenol chains.