Mitsubishi Chemical Group (MCG) has declared its decision to depart the coke and carbon materials (needle coke, pitch coke) business functioned under its consolidated subsidiary, Mitsubishi Chemical Corporation.
In association with the withdrawal from this business, MCG expects a complete non-recurring loss of about ¥85-billion, and anticipates to record a non-recurring loss of approximately ¥19-billion inside the third zone financial outcomes for the financial year ending March 2026. The left balance of about ¥66-billion is to be recorded as an estimate in the financial results for the fourth zone of the financial year ending March 2026.
This rearranging is part of the corporation’s continuing portfolio revise beneath its “KAITEKI Vision 35” and “Medium-Term Management Plan 2029,” targeted toward mitigating dangers related with market volatility.
The decision follows a hard business environment noted by continual slump within the overseas coke marketplace due to weak steel demand, especially from China and the begin-up of latest large-scale facilities in Indonesia.
With no prospect of resolving these structural problems in spite of the numerous measures taken to enhance profitability and the quality benefits of the corporation’s coke, the corporation has settled that medium- to long-term development might be difficult to acquire and it has therefore determined to stop coke manufacturing. Oversupply and slow demand keep to plague the carbon materials sector as well. Since the manufacturing system for carbon materials is primarily based at the operation of coke ovens, halting coke manufacturing could directly effect the cost structure of carbon materials.
In view of those conditions, MCG completely reviewed the medium-to-long-term positioning of this Product Group within its overall business portfolio against the three standards for business choice established by the corporation — consistency with its Vision, competitive benefit, and growth potential — and has therefore determined on a business withdrawal from this Product Group.
