Wedoany.com Report on Feb 24th, Mitsubishi Gas Chemical Co., Inc. (MGC) has decided to terminate the construction of a meta-xylene diamine (MXDA) production facility at its Dutch subsidiary, MGC Specialty Chemicals Netherlands BV (MSCN). This decision is based on factors including construction schedule delays, significant increases in building costs, intensifying market competition, and changes in the business environment. MGC had suspended construction of this MXDA plant last September and recorded an impairment loss on non-current assets, with relevant information disclosed in its financial announcements.

Since the suspension, Mitsubishi Gas Chemical has explored various alternative options, including resuming construction or seeking external partnerships. However, after evaluation, the company concluded that even if the MXDA plant were completed, production and sales would struggle to generate sufficient profit. Consequently, MGC has decided to proceed with the shutdown process, including equipment dismantling, aiming to complete the entire procedure by the end of 2029.

Mitsubishi Gas Chemical is currently reviewing the impact of this decision on its performance for the fiscal year ending March 31, 2026, and will issue further announcements as necessary. The cessation of operations is expected to incur additional costs related to equipment dismantling and contractual obligations. This move reflects the company's strategic adjustment in response to rising costs and market pressures to ensure long-term business stability.