Mitsubishi Chemical Halts Geismar MMA Monomer Plant Project

Mitsubishi Chemical Corporation, a subsidiary of Mitsubishi Chemical Group, announced its decision to abandon plans to build a new methyl methacrylate (MMA) monomer plant in Geismar, Louisiana.

Mitsubishi Chemical has been considering the construction of a new 350,000-tons MMA monomer plant in Geismar, Louisiana, based on the Group's proprietary new ethylene process (Alpha Process) technology since December 2020.

The Group acquired a construction site in Geismar, Louisiana, USA, and has since been working on preliminary engineering design and obtaining various regulatory required permits and approvals. However, the Group has decided to stop considering the investment plan, in part because the current MMA monomer production facilities in Tennessee and other places in the United States may not be able to meet current demand, and due to the increase in capital investment caused by inflation and other factors, the Group failed to obtain long-term transaction commitments when negotiating with customers after the implementation of the investment plan.

The Group will continue to optimize its global production system by establishing new business bases and consolidating existing business bases to enhance the competitiveness of its MMA business, and will pursue growth strategies such as focusing on high value-added applications and developing new applications in accordance with the "New Medium-Term Management Plan 2029" announced on November 13, 2024.

In view of the decision to stop reviewing the investment plan, the Group expects to record a loss of approximately 20 billion yen in the third quarter of the fiscal year ending March 31, 2025 and thereafter due to impairment losses on expenses incurred to date under the investment plan. The Group is currently reviewing the amount of the impact.