Mitsubishi Chemical Halts Construction of 350,000 Tons/Year Methyl Methacrylate Monomer Plant
On January 7, Japan's Mitsubishi Chemical Group announced the termination of its investment plan to build a 350,000 tons/year methyl methacrylate (MMA) monomer plant in Geismar, Louisiana, USA.
Regarding the reasons for the halt in construction, Mitsubishi Chemical said that after implementing the investment program, inflation and other factors led to an increase in capital investment and the failure to secure a long-term deal commitment after negotiations with the customer.
“Global demand for MMA monomer exceeds 3 million tons per year, and the market is expected to continue to grow steadily,” Mitsubishi Chemical added, adding that its existing MMA monomer production facilities in Tennessee, U.S., and elsewhere are capable of meeting current demand.
Mitsubishi Chemical announced in December 2020 that it will invest more than 100 billion yen in a new plant in Geismar. The plant uses ethylene produced from U.S. shale gas to make MMA monomer.
Currently, Mitsubishi Chemical has acquired a piece of land in Geismar and is in the process of engineering the project and obtaining permits and approvals. As a result of the decision not to move forward with the project, it is expected to lose a approximately 20 billion yen (approximately RMB 927 million).
Mitsubishi Chemical said it will continue to optimize its global production system by establishing new business locations and integrating existing ones to improve the competitiveness of its MMA business.
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