KH Neochem Co. decided to discontinue the production and sales of certain solvents manufactured at its Yokkaichi Plant by December 2025.

The solvents subject to the discontinuation of production and sales are primarily used as raw materials for paints and inks.

However, in addition to the slow recovery in demand, rising raw material prices and increasing fixed manufacturing costs have further intensified the challenges of the business environment. Although KH Neochem has continuously implemented initiatives such as improving production efficiency, the company has determined that securing profitability necessary to sustain this business over the medium to long term is no longer feasible.

Moving forward, the company will continue to transform its business portfolio and promote sustainable management by contributing to a sustainable society through its distinctive materials that are indispensable to the world, while also ensuring the ongoing growth of its corporate value.