Mitsubishi Chemical Terminates $300 Million MMA Plant Plan in the U.S.

In a press release dated December 9, 2020, Mitsubishi Chemical Corporation, a subsidiary of the Mitsubishi Chemical Group, announced its intention to build a new MMA monomer plant in Geismar, Louisiana, USA. This plant was to utilize the Group's proprietary "New Ethylene Process (Alpha Process)" technology. However, on January 7, 2025, the Mitsubishi Chemical Group officially announced its decision to terminate consideration of this investment plan.

MMA monomer is a key raw material for the production of acrylic resins, widely used in automotive lamps, signage, aquariums, coatings, and building materials. Global demand for MMA monomer exceeds 3 million tons annually, with the market expected to continue stable growth.

To make a final investment decision on the MMA monomer plant, the Mitsubishi Chemical Group planned to use ethylene derived from U.S. shale gas and employ its proprietary "New Ethylene Method (Alpha Process)" technology. The Group had purchased land for construction in Geismar, Louisiana, and was engaged in preliminary engineering design while striving to obtain necessary permits and approvals. However, due to existing MMA monomer manufacturing facilities in Tennessee and other regions meeting current demand, along with inflation and other factors leading to increased capital investment after the execution of the investment plan, the Group was unable to reach long-term trading commitments with customers and thus decided to halt consideration of the investment plan.

The Mitsubishi Chemical Group will continue to optimize its global production system by establishing new business locations and consolidating existing ones to enhance the competitiveness of its MMA business. The Group will implement a growth strategy focused on high value-added applications and the development of new applications according to the "New Mid-term Management Plan 2029" announced on November 13, 2024.