Mitsui Chemicals Inc announced its decision to withdraw from the nitrogen trifluoride (NF3) business on May 26, a critical gas used as a cleaning agent in the manufacturing of semiconductors and liquid crystal displays. The move, effective by the end of 2026, stems from intensifying market pressures that have rendered the business unsustainable, according to a company statement.

Production of NF3, currently handled by Mitsui Chemicals' wholly-owned subsidiary, Shimonoseki Mitsui Chemicals, Inc., is slated to cease by the end of March 2026, with sales concluding within the same calendar year. This strategic realignment is a direct consequence of a challenging operating environment characterized by escalating price competition from international manufacturers, coupled with a sharp rise in raw material, utility, and maintenance costs.

Mitsui Chemicals has been actively pursuing a comprehensive portfolio reform under its "VISION 2030 Long-Term Business Plan," which envisions the company as a "Chemistry for Sustainable World." A core tenet of this strategy is to transform into a global specialty company, anchored by a high-growth, high-profitability global specialty chemicals business and a sustainable green chemicals business. The decision to exit the NF3 market reflects a critical assessment of its alignment with these overarching strategic objectives.

While NF3 plays a vital role in the semiconductor and optical materials division of Mitsui Chemicals’ ICT Solutions Business Sector, the company has undertaken exhaustive efforts to rationalize operations and implement cost-cutting measures in response to the deteriorating profitability. Despite these initiatives, Mitsui Chemicals has concluded that it is no longer feasible to achieve the necessary level of profitability to sustain the NF3 business in the long term.

The withdrawal specifically impacts the nitrogen trifluoride (NF3) product manufactured at the Shimonoseki Mitsui Chemicals site. Mitsui Chemicals has pledged to minimize disruption to all stakeholders throughout this transition period.

Despite the significance of this strategic shift, Mitsui Chemicals anticipates only a minor impact on the financial performance of the Mitsui Chemicals Group. Consequently, the company has confirmed that there will be no change to its previously issued earnings forecast. This indicates that the NF3 business, while challenged, did not represent a disproportionately large component of the group's overall financial health, allowing for a managed exit without significant earnings revisions. The move underscores Mitsui Chemicals' commitment to optimizing its portfolio for future growth and profitability in line with its long-term vision.