Zeon warns of butadiene supply disruption from cracker closure

Tokyo, Japan – Zeon Corp. has warned that the planned closure of Maruzen Petrochemical's naphtha cracker in Chiba could significantly disrupt feedstock supplies to a nearby butadiene extraction facility.

The Japanese synthetic rubber producer expects the shutdown to result in a "significant shortage of C4" at the Maruzen-linked operations of Chiba Butadiene Industry.

In a 5 March presentation on domestic butadiene supply and demand, Zeon identified 90 kilotonnes per annum (ktpa) of extraction capacity linked to Maruzen's Chiba ethylene facility.

The operation forms part of Chiba Butadiene Industry's combined 175ktpa capacity, with a further 85ktpa linked to the nearby Keiyo Ethylene cracker.

According to Zeon, the Maruzen-linked extraction facility had an estimated utilisation rate of 70% in 2025, but faces a significant feedstock shortage following the planned ethylene shutdown.

By contrast, the company expects utilisation at the Keiyo-linked operation to increase from around 70% in 2025 to approximately 90% from 2030.

Zeon identified synthetic rubber producer UBE Elastomer as the main customer for butadiene from the Chiba facilities.

In a wider context, Zeon warned that restructuring across Japan's ethylene industry could significantly affect domestic butadiene production.

""The operating rate of Japan's butadiene extraction facilities is expected to decline to around 50% by 2030 due to C4 shortages," the company said, compared with an estimated 70% in 2025.

Zeon also warned that butadiene extraction facilities adjacent to ethylene crackers scheduled for closure could experience "significant declines in operating rates."

The Japanese group, however, plans to "maintain operating rates at 2025 levels" at its own 180ktpa butadiene extraction facility in Tokuyama, where utilisation is expected to remain at approximately 80%.

Looking ahead, Zeon said it intended to "utilise competitively produced in-house butadiene across the entire group," while maintaining "stable production and stable supply."

The group added that it would "consider external sales of in-house butadiene" if domestic supplies become tight following the restructuring of Japan's ethylene industry.

Maruzen Petrochemical announced in April 2025 that it would permanently close its own ethylene production facilities at Chiba during fiscal 2026 and consolidate production at Keiyo Ethylene.

The facility, which started operations in April 1969, has annual ethylene production capacity of 525,000 tonnes.

Keiyo Ethylene, owned 55% by Maruzen and 45% by Sumitomo Chemical, operates a 768,000-tonne/year ethylene plant at Chiba.

In their joint announcement, Maruzen and Sumitomo cited "global oversupply of ethylene" following major capacity expansions in China, alongside declining domestic demand and low operating rates in Japan.

The companies said the restructuring was intended to improve Keiyo's operating rate and competitiveness, while reducing fixed costs and carbon emissions.