Japan's MGC to shut Kashima polycarbonate plant by March 2028

However, Iupizeta EP, the optical resin polymer marketed by MGC’s Optical Materials Division, will not be affected by this decision and will continue to be supplied.

The reason for MGC’s decision to discontinue production lies in the ongoing challenges faced by its polycarbonate business, which has been under pressure in terms of profitability and capital efficiency due to a slump in market prices caused by oversupply and other factors.

Accordingly, it has been designated as a business requiring intensive management area under the current medium-term management plan (MTMP 2026), and structural reforms have been underway.

The company has conducted various studies aimed at improving profitability across the MGC Group’s production sites. However, the PC plant at the Kashima Plant has continued to operate at low profits, and improvement in profitability is not likely to be expected going forward.

As a result, MGC has decided to discontinue operations of the plant in March 2028. Following the discontinuation of the plant, domestic operations will be supported by products supplied from the Group’s overseas facilities.

In addition, the company will continue to steadily implement structural reforms in this business through such means as further optimisation of production capacity and a shift toward high-value-added products.

For employees currently engaged at the plant, MGC will prioritise continued employment and respond appropriately.

The MGC Group is currently examining the impact of this decision and other implications on its consolidated and non-consolidated operating results for the fiscal year ending March 31, 2026.

The company will promptly make an announcement should any matters requiring disclosure arise.

ALCHEMPro News Desk (JP)