Mitsubishi Gas Chemical to Halt Polycarbonate Production at Its Kashima Plant in Japan, with Capacity of 120,000 Tons/Year

On March 31, 2026, Mitsubishi Gas Chemical Company, Inc. (MGC) announced that a board meeting held on March 31, 2026, resolved to cease production operations of the polycarbonate (PC) unit at its Kashima Plant in Japan. The unit is scheduled to be shut down in March 2028.

1. Reasons for Production Halt

MGC's PC business has been facing ongoing challenges in terms of profitability and capital efficiency due to factors such as market oversupply leading to low prices. As a result, this business was identified as a priority area for restructuring under the current Medium-Term Management Plan (MTMP 2026), and structural reforms have been advanced. The company has conducted various studies aimed at improving the profitability of its production sites. However, the PC unit at the Kashima Plant has remained in a low-profit state for an extended period, and it is anticipated that improving its profitability will be difficult in the future. Based on this assessment, the company decided to halt production at this facility in March 2028. Following the shutdown of this unit, domestic operations in Japan will be supported by products from the group's overseas production bases. Furthermore, the company will continue to advance structural reforms for this business through further capacity optimization and a shift toward high-value-added products.

For employees currently working at the facility, the company will prioritize continued employment and make appropriate arrangements.

2. Overview of the Unit Scheduled for Production Halt

Unit Name: Polycarbonate production unit (located within the Kashima Plant)
Production Capacity: 120,000 tons/year
Scheduled Shutdown: March 2028

Note: The optical resin polymer "Iupizeta™ EP" marketed by MGC's Optical Materials Division is not included in this production halt.