TAGS: PVC, Plasticizers and Sustainability
Mitsubishi Gas Chemical Company announces that MGC will cease production of ortho-xylene (OX) and phthalic anhydride (PA) at its Mizushima Plant by the middle of January 2025.
OX is mainly used as a raw material for PA, as well as for solvents, pharmaceutical and agrochemical intermediate. PA is also used as a raw material for plasticizers of polyvinyl chloride resin.
Will be Ceasing the Production of TOTM
MGC has been producing these products for more than 50 years and has been striving for safe and stable operations and quality improvement.
However, MGC has been continuously unprofitable and does not expect to improve profitability in the future due to aging facilities and shrinking demand. In addition to this, MGC decided to terminate production as part of the business portfolio reforms outlined in the medium-term management plan, "Grow UP 2023".
MGC Will Cease Production of TOTM MGC announces that we will cease production of trioctyl trimellitate (TOTM) at its Mizushima Plant by March 2025. It will also dissolve Mizushima Plasticizers Corporation, the manufacturing, and sales company of TOTM.
TOTM is a low-volatility
plasticizer with excellent heat resistance, weather resistance, and electrical properties, and is mainly used for heat-resistant wire coating. However, MGC has been continuously unprofitable and does not expect to improve profitability in the future due to aging facilities and shrinkage in demand, in addition to continued unprofitable operations. The decision to terminate production was made as part of the business portfolio reforms outlined in the mid-term management plan.
MGC to Divest 50% Stake in CG Ester
Transfer of Share Regarding CG Ester MGC has decided to transfer its 50% equity interest in its equity method company, CG Ester Corporation to its joint venture partner, JNC Corporation. The share transfer is scheduled to take place on March 29, 2024, and the transfer price is 734 million yen. The impact of this transaction on our business performance is expected to be minimal. MGC will improve business profitability by liquidating and reorganizing unprofitable businesses and promote “transformation to a profit structure that is resilient to changes in the business environment”.
Source: Mitsubishi Gas Chemical Company