Mitsubishi Chemical Corporation, a subsidiary of the Mitsubishi Chemical Group, has announced its decision to discontinue plans for a new Methyl methacrylate (MMA) monomer plant in Geismar, Louisiana.

Mitsubishi Chemical had been considering the construction of a new 350 KT MMA monomer plant in Geismar, Louisiana since December 2020 on the basis of Group’s proprietary New Ethylene Process (Alpha Process) technology.

The Group acquired a construction site in Geismar, Louisiana (US) and had since been working on front engineering design and obtaining the permits and approvals required by various regulations. However, the Group has come to the decision to discontinue consideration of the Investment Plan due in part to the prospect of meeting immediate demand with existing MMA monomer manufacturing facilities in Tennessee (US) and elsewhere and the failure in negotiations with customers to obtain long-term commitments on transactions after the execution of the Investment Plan based on increases in capital investment stemming from inflation and other factors.

The Group will continue to optimize its global production system by establishing new business locations and consolidating existing ones to boost the competitiveness of its MMA business and will pursue such growth strategies as focusing on high value-added applications and developing new applications in accordance with the "New Medium-Term Management Plan 2029" announced on November 13, 2024.

In connection with the decision to discontinue consideration of the Investment Plan, the Group expects to record a loss of approximately 20 billion yen in the third quarter of the fiscal year ending March 31, 2025, and thereafter due to impairment losses on expenses incurred to date for this Investment Plan. The amount of impact is currently being scrutinized and an announcement will be promptly forthcoming if it becomes necessary to revise the consolidated earnings forecast for the fiscal year ending March 31, 2025.