- Construction of the MXDA facility in the Netherlands was halted due to delays and cost increases.
- MGC assessed and recorded impairment losses on MSCN's noncurrent assets.
- Equipment removal is planned to be completed by the end of 2029.
- Financial impacts of the decision are under review for the fiscal year ending March 31, 2026.
Project Discontinuation
Mitsubishi Gas Chemical Company, Inc. (MGC) has decided to discontinue the construction of a meta-xylenediamine (MXDA) production facility at its subsidiary, MGC Specialty Chemicals Netherlands B.V. (MSCN). This decision was made during a Board of Directors meeting on February 20, 2026.
Reasons for Halting Construction
The construction was initially suspended due to delays, increased costs, and intensified market competition. MGC evaluated the recoverable value of MSCN's noncurrent assets, leading to recorded impairment losses, which were disclosed in financial results announcements in November 2025 and February 2026.
Future Plans
MGC explored options such as resuming construction or partnering with external companies but concluded that the MXDA facility would not be profitable. The company plans to proceed with shutting down the facility, including equipment removal, by the end of 2029.
Financial Implications
The MGC Group is assessing the impact of this decision on its consolidated and non-consolidated operating results for the fiscal year ending March 31, 2026. The company will announce any significant developments requiring disclosure. The discontinuation is expected to incur costs related to equipment removal and contract procedures.
