Plants: Mitsubishi Gas Chemical to halt production of OX and PA; selling stake in plasticiser firm
Japanese chemical firm Mitsubishi Gas Chemical (MGC) will suspend its production of orthoxylene (OX) and phthalic anhydride (PA) at its Mizushima site from mid-January 2025, and is selling off its 50% stake in CG Ester Corp, thereby exiting the plasticisers business.
The company sited continued unprofitability, ageing equipment, and forecasts of shrinking demand as its decision to halt OX and PA production next year. MGC produces 30,000 tonnes/year of OX and 40,000 tonnes/year of PA at its Mizushima site.
OX is mainly used as a raw material for PA, as well as for solvents and pharmaceutical and agrochemical intermediates. PA is used as a raw material for plasticisers.
MGC said that it has sold off its 50% stake in plasticisers maker CG Ester Corp to its partner JNC Corp in a deal worth US$4.9 million.
The share transfer was scheduled for 29 March this year, after which, CG Ester will be fully owned by JNC. CG Ester can produce 70,000 tonnes/year of plasticisers via two production sites in Mizushima and Ichihara, according to its website.
CGE will cease manufacturing at its Mizushima plant by March 2025 and will take over operations of JNC Petrochemical Corp’s manufacturing facility in Ichihara and will also continue to operate its own facility at the site, JNC Corp said in a statement.
Mitsubishi Gas Chemical's decision to exit the plasticisers business and cease orthoxylene and phthalic anhydride production underscores a strategic realignment aimed at fostering sustainability and resilience in a rapidly changing industry. The company is making forward-looking decisions to address current challenges and position itself for future opportunities.
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