Sumitomo Chemical to Close Two Key Production Lines in Singapore, MMA Monomer Capacity Slashed by 80%, PMMA Capacity Dives by 70%!

Sumitomo Chemical Corporation has made the decision to close two key production lines at its wholly owned subsidiary Sumitomo Chemical Asia in Singapore, which are responsible for the production of methyl methacrylate (MMA) monomer and polymethyl methacrylate (PMMA), by the end of September 2024. The move will result in an approximately 80% reduction in MMA monomer capacity and a 70% reduction in PMMA capacity in the region.

Polymethyl methacrylate (PMMA), as a plastic, is known for its excellent transparency, weather resistance and gloss, and is widely used in automotive taillights, sign plates, aquarium tanks and optical components of liquid crystal displays. Polymethyl methacrylate monomer is the main raw material of polymethyl methacrylate and coating materials. Although the MMA monomer and PMMA markets are now showing signs of recovery after a period of significant decline, capacity is expected to continue to grow in the Asian region.

In view of this, Sumitomo Chemical Group believes that in the medium to long term, it will be challenging to ensure the stability of sales volume and profit margin, especially in the general-grade product segment. Therefore, after the reduction of these capacities, the Group will focus on developing specialized and high value-added PMMA products, leveraging its technological advantages and transforming its business structure into a more stable form that can adapt to market changes. In addition to accelerating the transformation of its existing product portfolio and production systems, Sumitomo Chemical is also making significant adjustments in its petrochemical business and investing resources in technological innovations that reduce environmental impact.

For PMMA, the company has completed a pilot facility for plastic chemical recycling at its Ehime plant in Japan in December 2022, and is carrying out technology validation and marketing activities with a view to applying chemical recycling technology to society as soon as possible. In May 2024, the company also entered into a partnership agreement with Lummus Technology, a major U.S. technology licensor, to license and commercialize its chemical recycling technology. Going forward, the company will further strengthen its offering of MMA-related solutions.

Sumitomo Chemical is implementing short-term performance improvement measures and, as part of these efforts, is accelerating business restructuring from the perspective of profitability and the best owner principle. The company will steadily advance these measures to ensure a V-shaped recovery and fundamental structural reforms in fiscal 2024.