Mitsubishi Chemical Group announces that its Corporate Executive Officers Committee resolved to cease the production of methacrylates at UK’s Cassel Site subject to completion of the labor-management consultation.
Reasons for the Decision
The production of methacrylates at the site have been offline since January 2022, initially to undertake a planned overhaul, and since then due to the impact of rapidly escalating natural gas prices caused by the situation in Ukraine, a significant downturn in the European economy as a result of high inflation, and the weak demand in the methacrylates market.
A comprehensive business review was undertaken which concluded that the company does not believe that the UK manufacturing operation of methacrylates can be economically sustainable for the foreseeable future in an increasingly competitive global market. The Group therefore resolved today to cease the production of methacrylates at the site subject to completion of the labor-management consultation.
This matter is currently under careful examination, including its impact to the Group’s earnings. The Group will promptly disclose any matters, should events arise that require disclosure. The earnings impact would be expected to include impairment loss on fixed asset and in addition plant removal costs, employee severance payments, and others in the future.
Source: Mitsubishi Chemical