Toray withdraws from PTA business

Recently, Toray announced that it will stop producing terephthalic acid (PTA), a raw material for polyester fibers, in Japan in 2026. With Toray's withdrawal, PTA will no longer be produced in Japan. Toray currently only produces PTA in Japan, mainly for its own products such as polyester yarn and film. The company's Tokai plant in Aichi Prefecture has equipment with an annual production capacity of 165,000 tons, but will stop production in 2026.

Toray Group only produces PTA in Japan. The group's Tokai plant in Aichi Prefecture has a set of PTA production equipment with an annual production capacity of 165,000 tons. The PTA it produces is mainly used in the manufacture of its own polyester yarn and film products.

In recent years, international chemical companies Lotte Chemical, INEOS, and Mitsubishi Chemical have successively announced their withdrawal from the PTA business.

On December 22, 2023, Mitsubishi Chemical's official website announced that it would transfer 80% of the shares of its subsidiary PT Mitsubishi Chemical Indonesia (MCCI) to PT Lintas Citra Pratama, which involves the Indonesian PTA market. At present, the PTA module can no longer be searched on Mitsubishi Chemical's official website.

On November 29, 2023, international chemical giant INEOS announced that it plans to close the smaller and older of the two PTA units at the Hull plant in Antwerp, Belgium. The increase in energy, raw materials and labor costs has led to a lack of competitiveness in European production, and the group hopes to focus more on high-end new materials.

In February 2023, Lotte Chemical announced plans to sell its 75.01% stake in LCPL Pakistan Limited (LCPL) and completely withdraw from the PTA business. The funds obtained from the sale of the PTA business will be used to develop high value-added product markets, expand specialty chemicals business, and enter the environmental protection materials business.