Japan’s MGC cuts PC resin output on poor profits

30 July 2008 13:12  [Source: ICIS news]

TOKYO (ICIS news)--Japan’s Mitsubishi Gas Chemical (MGC) plans to reduce the production of polycarbonate (PC) resin at its Kashima-based factory by a maximum of 20% for the time being on poor economics, the company said on Wednesday.

 

The profitability of the PC product Iupilon had been hit by declining domestic demand due to the slowdown of the local economy, while feedstock costs continued to increase, the company added.

 

“As for the rate of reduction and when to return to normal production, we will consider feedstock prices, as well as the movement of the PC resin market, and make a decision in a comprehensive manner,” MGC said.

 

The PC plant has a capacity of 110,000 tonnes/year.

 

Meanwhile, Mitsubishi Chemical Co (MCC) announced last week it had indefinitely postponed the start-up of its new 60,000 tonne/year PC unit in Kurosaki due to poor economics.

 

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By: Tomomi Yokomura
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