Mitsubishi Gas Chemical (MGC) announces that MGC will cease the production of trioctyl trimellitate (TOTM) at its Mizushima Plant by March 2025. They will dissolve the Mizushima Plasticizers Corporation. It is the manufacturing and sales company of TOTM.
Terminating Production to Reform Product Portfolio
TOTM is a low-volatility plasticizer with excellent heat resistance, weather resistance, and electrical properties. It is mainly used for heat-resistant wire coating. The decision to terminate production was made as part of the business portfolio reforms outlined in the mid-term management plan.
MGC will also cease the production of ortho-xylene (OX) and phthalic anhydride (PA) at its Mizushima Plant (Kurashiki City, Okayama Prefecture) by the middle of January 2025. The head office is at Chiyoda-ku, Tokyo.
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.
MGC 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 continued unprofitable operations in Japan, MGC decided to terminate production as part of the business portfolio reforms outlined in the medium-term management plan, ‘Grow UP 2023’.
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