Mitsubishi Chemical Group Corporation has announced its decision to discontinue plans for a new Methyl methacrylate (MMA) monomer plant in Geismar, Louisiana. Despite the growing demand for MMA, used in various industries including automotive and construction, the company cited factors such as the ability to meet demand with existing facilities, inflation-driven investment costs, and unsuccessful long-term customer negotiations as reasons for the decision.
The project, announced in December 2020, aimed to use the Group’s proprietary ‘Alpha Method’ technology, leveraging ethylene derived from US shale gas. However, after extensive feasibility studies and permitting efforts, the Group decided against proceeding.
The discontinuation will result in a loss of approximately 20 billion yen, to be recorded in the fiscal year ending March 31, 2025. Mitsubishi Chemical plans to optimise its global production system and focus on high value-added applications under its medium-term management plan 2029, the Group said in media release.
The company remains committed to enhancing its competitiveness in the MMA business while pursuing new growth opportunities.
ALCHEMPro News Desk (HU)
Receive daily prices and market insights straight to your inbox. Subscribe to AlchemPro Weekly!
marketing@alchempro.com
