May 14, 2026 10:15

Japanese chemical group Mitsubishi Chemical has decided to withdraw from the polybutylene succinate (PBS) business, permanently ending production at the PTT MCC Biochem site in Rayong, Thailand (pictured), and dissolving its joint venture with PTT Global Chemical.

PBS is a biodegradable and compostable aliphatic polyester produced from succinic acid and 1,4-butanediol. The biopolymer offers a good balance of mechanical strength, flexibility, heat resistance and heat-sealing properties.

Established by the two partners in 2011, the PTT MCC Biochem joint venture began producing bio-based PBS in 2017 under the BioPBS brand, targeting applications in coatings for paper cups and coffee capsules, packaging and tableware.

Mitsubishi Chemical said the PBS business has continued to suffer from low profitability due to several factors, including a gap between initial assumptions and actual market conditions. After carefully assessing future prospects, the Japanese group concluded that achieving sustainable growth in the business would be difficult and therefore decided to withdraw.

The plant scheduled for decommissioning has a production capacity of 20,000 tonnes/year. Production of BioPBS in Thailand was stopped in December 2025 and sales will end once inventories have been depleted. After the production facilities have been dismantled, the PTT MCC Biochem joint venture will be dissolved and liquidated in accordance with local laws and regulations.

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