Mitsubishi Gas Chemical (MGC) has announced that it will discontinue operations at its polycarbonate (PC) plant within the Kashima Plant, with full shutdown scheduled for March 2028.

 

At its Board of Directors meeting on March 31, 2026, MGC cited persistent challenges in profitability and capital efficiency as the reason for the closure.

 

“MGC’s PC business has been facing challenges in terms of profitability and capital efficiency due to a slump in market prices caused by oversupply and other factors,” the company said. “Accordingly, it has been designated as a business requiring intensive management area under the current medium-term management plan (MTMP 2026), and structural reforms have been underway.”

 

Despite company-wide efforts to boost profitability, the Kashima PC plant has continued to operate at low margins. “The PC plant at the Kashima Plant has continued to operate at low profits, and improvement in profitability is not likely to be expected going forward. As a result, MGC has decided to discontinue operations of the plant in March 2028,” MGC confirmed.

 

Following the shutdown, domestic supply will shift to the Group’s overseas facilities. The company emphasized ongoing structural reforms, including optimization of production capacity and a pivot toward high-value-added products. “For employees currently engaged at the plant, MGC will prioritize continued employment and respond appropriately,” the statement said.

 

The plant slated for closure has an annual production capacity of 120,000 tonnes. MGC clarified that Iupizeta EP, the optical resin polymer sold by its Optical Materials Division, will not be affected by this decision.