KH Neochem will end production and sales of certain solvents at its Yokkaichi Plant by December 2025.
Used in paints and inks, these solvents face low demand recovery, rising raw material prices, and higher fixed costs.
Despite efficiency efforts, profitability is unfeasible.
The company will focus on sustainable management and innovative materials to drive growth.
KH Neochem Co., Ltd. (TSE: 4189, President and CEO: Michio Takahashi, “KH Neochem”) decided to discontinue the production and sales of certain solvents manufactured at our Yokkaichi Plant by December 2025.The solvents subject to the discontinuation of production and sales are primarily used as raw materials for paints and inks. However, in addition to the slow recovery in demand, rising raw material prices and increasing fixed manufacturing costs have further intensified the challenges of the business environment. Although we have continuously implemented initiatives such as improving production efficiency, we have determined that securing profitability necessary to sustain this business over the medium to long term is no longer feasible.
Moving forward, we will continue to transform our business portfolio and promote Sustainable Management by contributing to a sustainable society through our distinctive materials that are indispensable to the world, while also ensuring the ongoing growth of our corporate value.
KH Neochem will end production and sales of certain solvents at its Yokkaichi Plant by December 2025.
Used in paints and inks, these solvents face low demand recovery, rising raw material prices, and higher fixed costs.
Despite efficiency efforts, profitability is unfeasible.
The company will focus on sustainable management and innovative materials to drive growth.#
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