“Ube Industry revealed that it would cease and dismantle its production plant for caprolactam and related products in Sakai city, Osaka, at the end of March of 2014. The plant to be dismantled will include production facilities of ammonia and liquid carbon dioxide. These are indicating that the major source of liquid carbon dioxide with a production capacity of 90,000 tons annually for users in Kinki (Osaka and surrounding prefectures) Area will disappear.

In Japanese liquid carbon dioxide and dry ice market, business in refineries and ammonia plants which are source for crude gas have been dismantling or downsizing next to next. Capacity to supply of these source have been dramatically reducing. According with the disappearance of the large source located in Kinki area where is one of most major areas for demand in Japan, it will not be avoidable to reduction in capacity to supply at the peak demand. Suppliers for dry ice will struggle to procurement of products from other areas including importation from Korea.

In Western Japan, the major source for liquid carbon dioxide as a by-product of production of ammonia at Mizushima plant of Asahi Kasei, with a capacity of 90,000 tons a year, disappeared in February last year. After that, in July, it was revealed that the source with a capacity of 30,000 tons a year at Sakaide plant of Cosmo Oil would cease. In February of this year, new sources at Seibu Oil (90,000 tons a year) and Ube Industry (50,000 tons a year) have started. However shortage of source of liquid carbon dioxide and dry ice will continue for the time being due to the dismantling of Sakai plant of Ube Industry.”