Mitsubishi Gas Chemical Suspends Construction of MXDA Plant in the Netherlands

Mitsubishi Gas Chemical (MGC) announced that it will suspend construction of the meta-xylylenediamine (MXDA) manufacturing plant at its consolidated subsidiary, MGC Specialty Chemicals Netherlands BV, due to construction delays, rising construction costs, and changing market conditions.

MGC has been constructing the MXDA manufacturing facility in MSCN to establish a new production base in Europe, MXDA's largest market, with initial plans to begin production in July 2024.

However, in addition to construction delays caused by a change in construction contractors, the company has also experienced rising construction and labor costs due to the Russia-Ukraine conflict and a shifting competitive environment in the MXDA market.

The company stated in a press release: "Due to changes in the business environment, the viability of the project may be less viable than originally planned. Given this situation, we have decided to temporarily suspend construction work at MSCN to review our business plan, including whether to continue construction."