Japanese Chemical Industry Mitsubishi Gas Chemical Quits PTA: Mizushima Aroma to be Dissolved
No light at the end of the tunnel insight for the Japanese chemical industry: As a reaction to global overcapacities and declining margins, Mitsubishi Gas Chemical announced its withdrawal from the purified terephthalic acid (PTA) business.
Tokyo/Japan – By 2015, Mitsubishi Gas Chemical (MGC) plans to have dissolved its PTA activities: As a consequence, Mizushima Aroma, a joint venture of Mitsubishi and Toyobo for the the PTA production and distribution will stop its operations at the end of March 2015. MGC’s PTA business has been continuously facing difficulty in achieving profitability.
Although polyester, PTA’s primary application, is expected to see an annual increase in demand of some six percent going forward, the PTA market suffers from a substantial excess supply worldwide due to an overall increase in production capacity. It remains unlikely that the excess supply will be eliminated in the foreseeable future, making it impossible for MGC to expect the profitability of its PTA business to improve, the company stated.