Mitsubishi Chemical to Halt Production of Key Epoxy Resin Grades by 2027

Mitsubishi Chemical Corporation (MCC) has announced that it will discontinue production and sales of several epoxy resin grades at its Tokai Plant Kawajiri site in Yokkaichi, Mie Prefecture. The halt is scheduled to take effect around the end of September 2027.

The discontinued products include bisphenol A liquid epoxy resin, though certain grades may be outsourced to maintain supply. Also affected are bisphenol F liquid epoxy resin, where all self produced output will be discontinued, as well as liquid and solid epoxy resins manufactured using bisphenol A, bisphenol F, and various curing agents. These epoxy resins are widely used in paints, adhesives, and construction auxiliaries.

MCC cited two primary reasons for the production halt. First, the aging production equipment at the Kawajiri facility has been in service for an extended period, leading to rising maintenance costs and efficiency challenges compared to newer competing facilities. Second, the business environment has become difficult due to intense competition in the global commodity epoxy market, particularly from large scale capacity expansions in China. This has resulted in severe oversupply and squeezed profit margins, making continued production unsustainable.

The decision aligns with MCC’s Medium Term Management Plan 2029 and its long term KAITEKI Vision 35, which identifies enabling advanced data processing and telecommunications as a core strategic focus area. Rather than exiting the epoxy business entirely, MCC is shifting resources toward higher value applications. The company will continue to supply special epoxy resins for semiconductor encapsulants and electronic materials, products that support advanced chip packaging, copper clad laminates, and electronic insulation applications.

MCC’s Kawajiri facility accounts for approximately 8 percent of global commodity epoxy resin capacity. Short term effects are expected to include tighter supply of bisphenol A and bisphenol F liquid epoxy resins, potentially driving up prices for these commodity grades. Some bisphenol A products will continue to be available through third party outsourcing, though the scale of outsourced supply may not fully fill the gap. Longer term implications point toward an accelerating industry trend where major chemical players rationalize commoditized capacity while concentrating investments in high performance, high margin specialty materials for semiconductors and electronics. MCC will manage the transition of affected products while deepening its focus on specialty epoxy resins for semiconductor packaging and electronic components, aiming to secure a leading position in molding materials for advanced chip applications.