Asahi Kasei Exits as China Production Capacity Expansion Forces International Giants Out

Recently, Jilin Petrochemical Acrylonitrile plant 250,000 tons/year MMA (methyl methacrylate)Acrylic acidThe successful full-line integration and one-time startup of the methyl methacrylate (MMA) modification unit marked the increase of the company's total MMA production capacity from 200,000 tons per year to 250,000 tons per year. At the same time, it also signaled the beginning of the commissioning of new chemical units in the acrylonitrile plant series.

The technical accumulation of Jilin Petrochemical's MMA production line can be traced back to 2008 and 2012, when the German Degussa Acetone Cyanohydrin (ACH) process technology was introduced, and two sets of 100,000 tons/year units were established, with a total capacity of 200,000 tons/year. The newly constructed 250,000 tons/year unit was started up in September 2022 and completed handover on April 30, 2025. Its process package preparation and engineering design were independently completed by Global Jilin Company, marking a significant enhancement in the independent capabilities of Chinese enterprises in the core technology field of MMA.

As an important chemical raw material, MMA has extremely wide application scenarios. From polymethyl methacrylate (PMMA) to polyvinyl chloride additives (ACR), from coatings and adhesives to textile printing and dyeing auxiliaries, its downstream applications cover multiple industries such as construction, automotive, and electronics. However, it is precisely this broad demand that has triggered a global capacity race. International giants such as Mitsubishi Chemical, Dow, and Asahi Kasei have long dominated the market, but in recent years, the rise of Chinese companies has been reshaping the landscape—enterprises like Chongqing Yixiang, Jiangsu Sailboat, and Wanhua Chemical are driving China’s MMA production capacity to grow at an average annual rate of 18% through new construction or capacity expansion. In the first half of 2025, with the successive commissioning of Sinochem Quanzhou Petrochemical and Panjin Sanli facilities, the total production capacity will reach 2.8 million tons, representing a year-on-year increase of 7.68%.

Concerns of Overcapacity and Price Wars

Behind the capacity expansion, the supply-demand imbalance has become increasingly prominent. Although domestic MMA production capacity continues to increase, the recovery of end-user industries such as construction and automobiles remains weak, resulting in lower-than-expected demand growth for major downstream products such as PMMA and ACR. According toBuy Chemicals and PlasticsAccording to research institute data, the average price of MMA in the East China market in the first half of 2025 dropped by 22.37% year-on-year to 10,941 yuan/ton. After July, prices further fell below the 10,000 yuan mark, and by August, the mainstream price in East China had dropped to 9,500 yuan/ton. The continuous price decline has directly squeezed corporate profits, intensifying competition within the industry to a white-hot stage.

This trend has even forced international giants to adjust their strategies. Japan's Asahi Kasei will close its MMA plant in Thailand in November 2024 and announced a complete withdrawal from the MMA business in May 2025, citing "the supply-demand imbalance caused by China's capacity expansion" as the core reason in its public statement. Asahi Kasei's withdrawal both reflects the cost advantage of Chinese companies and exposes the structural risks in the global MMA industry. The rapid deployment of low-cost capacity is reshaping the market landscape, but the demand side has yet to form an effective reception.

Jilin Petrochemical's counter-current expansion is attributed to its synergistic advantage in the industrial chain (relying on acrylonitrile raw material support), while also facing the challenge of overall industry profit decline. The successful operation of Jilin Petrochemical's new MMA facility is a microcosm of the upgrading of China's chemical industry. Under the dual pressures of global competition and overcapacity, how to balance scale expansion and efficiency improvement will be key for enterprises to navigate through the cycle.