Japan’s MGC to close OX, PA plants in Jan ’25; exits plasticizers business

Nurluqman Suratman

01-Mar-2024

SINGAPORE (ICIS)–Japan’s Mitsubishi Gas Chemical (MGC) will suspend its production of orthoxylene (OX) and phthalic anhydride (PA) at its Mizushima site from mid-January 2025, and is selling off its 50% stake in CG Ester Corp, effectively exiting the plasticizers business.

Continued unprofitability, aging equipment, and forecasts of shrinking demand prompted MGC’s decision to halt OX and PA production next year, the company said in a statement on 26 February.

MGC produces 30,000 tonnes/year of OX and 40,000 tonnes/year of PA at its Mizushima site.

OX is mainly used as a raw material for PA, as well as for solvents and pharmaceutical and agrochemical intermediates. PA is used as a raw material for plasticizers.

In a separate statement, MGC said that it has sold off its 50% stake in plasticizers maker CG Ester Corp to its partner JNC Corp in a deal worth yen (Y) 734m ($4.9m).

The share transfer was scheduled for 29 March this year, after which, CG Ester will be fully owned by JNC.

CG Ester can produce 70,000 tonnes/year of plasticizers via two production sites in Mizushima and Ichihara, according to its website.

CGE will cease manufacturing at its Mizushima plant by March 2025 and will take over operations of JNC Petrochemical Corp’s manufacturing facility in Ichihara and will also continue to operate its own facility at the site, JNC Corp said in a statement.

($1 = Y150.5)

Additional reporting by Michelle Liew

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