Mitsubishi Gas Chemical Company (MGC) has announced that its Board of Directors has decided to discontinue construction of a meta-xylenediamine (MXDA) production facility at its Netherlands subsidiary, MGC Specialty Chemicals Netherlands BV (MSCN).

 

The company cited a combination of “construction schedule delays, a significant increase in construction costs, intensifying market competition, and other changes in the business environment” as reasons for the move.

 

MGC had initially suspended work on the facility last September and recorded impairment losses on MSCN’s noncurrent assets, which were disclosed during financial results announcements in November 2025 and February 2026.

 

Since then, the company explored alternatives, including resuming construction and partnering with external firms. However, MGC concluded that “the production and sale of MXDA would not allow MSCN to secure sufficient profit even if the facility in question were to be completed.”

 

The company plans to proceed with shutdown procedures, including equipment removal, aiming to complete the process by the end of 2029.

 

MGC also noted that it is reviewing the impact of this decision on its consolidated and non-consolidated results for the fiscal year ending March 31, 2026, and will make further announcements if necessary. The discontinuation is expected to incur additional costs, including those related to equipment removal and contractual obligations.