Japan chemical industry chief says more capacity cuts are needed

Tokyo

JAPAN'S chemical industry will enjoy robust profits for another two years due to low oil prices, but needs to cut more capacity ahead of increased competition from cheap US and Chinese products, Mitsubishi Chemical Holdings' chairman said.

Japanese chemical firms are predicting strong earnings for the year to March 2016, with top-ranked Mitsubishi forecasting a record operating profit, on the back of higher margins for turning oil-based naphtha into ethylene as low oil prices cut feedstock costs.