Mitsubishi Chemical Group Corporation hereby announces that Mitsubishi Chemical UK Limited, our group’s UK company, begins a period of consultation with its employees on a proposal to cease the production of methacrylates at its Cassel Site. Methacrylates include MMA (Methyl Methacrylates) monomer, Methacrylic Acid and Higher Methacrylates.

 

The production of methacrylates at the site have been offline since January 2022, initially to undertake a planned overhaul, and since then due to the impact of rapidly escalating natural gas prices caused by the situation in Ukraine, a significant downturn in the European economy as a result of high inflation, and the weak demand in the methacrylates market.

 

A comprehensive business review has now concluded that economic sustainability of UK manufacturing operation of methacrylates in an increasingly competitive global market cannot be achieved. A final decision is expected in January after the consultation period. This matter is currently under careful examination, including its impact to the Group’s earnings. The Group will promptly disclose any matters, should events arise that require disclosure.

 

The Mitsubishi Chemical Group, as a leading company in MMA operations, possesses production sites using three manufacturing methods (ACH, C4 and Alpha method) in various regions globally and is strengthening its supply chain in line with supply and demand, and raw material trends. We will continue to provide a stable supply to customers in the European region from our other sites.