Mitsubishi Gas Chemical Company (MGC) has declared that its Board of Directors has decided to stop construction of a meta-xylenediamine (MXDA) manufacturing facility at its Netherlands subsidiary, MGC Specialty Chemicals Netherlands BV (MSCN).
The corporation referenced a integration of “construction schedule delays, a enormous rise in construction prices, strengthening market competition, and other changes within the business environment” as reasons for the move.
MGC had at first stopped work on the facility last September and recorded impairment losses on MSCN’s noncurrent assets, which had been suspended during financial results declaration in November 2025 and February 2026.
After that, the corporation explored options, which includes continuing construction and partnering with external corporation. Moreover, MGC inferred that “the manufacturing and sale of MXDA would not permit MSCN to stable sufficient profit despite the fact that the facility in question were to be finished.”
The corporation will move forward with shutdown processes, including equipment removal, targeting to finish the process by the end of 2029.
MGC also referred to that it is reviewing the effect of this decision on its consolidated and non-consolidated results for the fiscal year ending March 31, 2026, and could make similarly declaration if necessary. The discontinuation is anticipated to incur additional prices, which includes those related to equipment removal and contractual obligations.
