Dissolutions: Mitsubishi Chemical exits Taiwanese MMA jv with CPDC; Mitsubishi Gas Chemical to end PC production at Kashima plant

Japan’s Mitsubishi Chemical Corporation has announced that it has agreed with Taiwan-based Kaohsiung Monomer Company Limited (KMC) and China Petrochemical Development Corporation (CPDC) to dissolve its co-ownership of KMC and transfer all its shares to CPDC. It will transfer its 60% equity stake in KMC to CPDC.

KMC operates an ACH-method MMA monomer plant in Kaohsiung with annual capacity of 105,000 tonnes and capital of TWD500 million.

CPDC (40% owner) produces caprolactam and acrylonitrile.

The move comes as the MMA market in Asia faces intensifying competition, driven largely by China’s large-scale capacity expansion. Mitsubishi Chemical said it carefully reviewed the strategic significance of retaining its Taiwanese production base and decided it was time to exit.

It expects the transfer of all of the company’s equity interest to CPDC to be completed by August 3, 2026.

“Recognising this business environment, the company reviewed the strategic significance of continuing to own the MMA monomer production base in Taiwan, and decided to dissolve its co-ownership of KMC with CPDC and transfer all of the equity interest held by the Company in KMC to CPDC,” the company stated.

Mitsubishi Chemical emphasised that it will focus on strengthening its global MMA manufacturing footprint.

“Going forward, as an MMA manufacturer that possesses a number of MMA manufacturing technologies and runs production facilities around the world, the company will consolidate its production facilities into locations where it is relatively more competitive while accelerating entry into markets having high growth potential, as part of efforts to build optimal production and marketing networks,” it said.

Meanwhile in related news, Mitsubishi Gas Chemical has decided to discontinue polycarbonate production at its Kashima Plant, with operations scheduled to end in March 2028.

It adds that the polycarbonate business has suffered weak profitability and poor capital efficiency due to a market-price slump caused by oversupply; it was designated a business requiring intensive management under the MTMP 2026 and has been subject to structural reforms.

The affected facility is the polycarbonate production unit within the Kashima plant with a capacity of 120,000 tonnes/year. Following closure, domestic polycarbonate supply will be supported by the group’s overseas facilities, and the company says it will prioritise continued employment for employees currently engaged at the plant.

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