The Mitsubishi Chemical Group (MCG) hereby announces it has decided to embark on intergroup organizational restructuring, and will involve MCG, its consolidated subsidiary Mitsubishi Chemical Corporation (MCC) and its group’s four regional headquarters in North America and Europe*.

 

*The names of the four overseas regional headquarters of our group in North America and Europe are as follows:

 

(1) Subsidiaries directly invested in by MCG

 Mitsubishi Chemical Holdings America, Inc.

 Mitsubishi Chemical Holdings Europe GmbH 

 

(2) Subsidiaries directly invested in by MCC

 Mitsubishi Chemical America, Inc. 

 Mitsubishi Chemical Europe GmbH 

 

In accordance with “Forging the future,” the new management policy announced in December 2021, since April 1, 2022 MCG has been transitioning to a flat organizational system based on the “One Company, One Team” concept.

 

In conjunction with this transition, MCG aims to improve its management efficiency and accelerate its decision-making by reshuffling and concentrating the management functions currently spread across the overseas regional headquarters directly invested in by MCG and those directly invested in by MCC in North America and Europe.

 

MCG aims to maximize the group’s corporate value. This is in accordance with a clear-cut strategy for business management that pursues efficiency and which extracts the growth potential of group businesses.

 

The organizational restructuring of the respective overseas regional headquarters of MCG in North

America and Europe shall be carried out as follows by October 2022.

 

(1) MCG shall be split, with MCC as the surviving company. Reflecting this, MCC will acquire all the shares and management operations of MCHA and MCHE (hereinafter “this absorption split”).

 

(2) MCC will implement an investment-in-kind into MCA and MCE, respectively of all the shares in MCHA and MCHE

 

(3) In North America, MCA and MCHA, and in Europe, MCE and MCHE will be merged respectively, to integrate the overseas regional headquarters in North America and Europe. The details, including the schedule and method, of this merger will be taken into consideration moving forward.

 

This organizational restructuring involves restructuring within the group between MCG and wholly-owned subsidiaries. The impact to the consolidated earnings of MCG is minor.