On November 24, Mitsubishi Chemical announced on its website that it had entered into industrial negotiations with employees of Mitsubishi Chemical UK Limited on the premise that the Cassell MMA (methyl methacrylate) plant would cease production.
Mitsubishi Chemical said the move, which could result in the end of all methacrylate related manufacturing operations at the Cassell plant, was initiated following a comprehensive review aimed at identifying opportunities to restore long-term economic sustainability.
Acrylic resin manufacturing at the plant began with ICI in 1930 and continued until the business was acquired by Ineos in 1999. In 2002, the business was sold to Lucite International and acquired by Mitsubishi Rayon (now Mitsubishi Chemical) in 2009. Currently, the acrylic resin capacity is 200,000 tons/year (Alpha method).
Since January 2022, the production of MMA-related products at the plant has been suspended due to regular maintenance. Since then, the plant has continued to be shut down due to the economic slowdown in Europe due to high gas prices and high inflation in the context of Ukraine and low demand for MMA monomers.
Mitsubishi Chemical said it had conducted a comprehensive review of the group's MMA business and concluded that manufacturing activities for MMA-related products based in the UK were not economically sustainable in an increasingly competitive global market.
A final decision will be made in January 2023, following a consultation period.
As a leader in the MMA business, Mitsubishi has three manufacturing facilities (ACH, C4 and Alpha) in all regions of the world. Mitsubishi is committed to strengthening its supply chain to adapt to supply and demand and raw material trends. Mitsubishi Chemical said it would provide stable supplies to European customers from other locations even if the UK plant was closed.
Mitsubishi Chemical will consolidate the global MMA business
On February 24, 2021, Mitsubishi Chemical announced: To strengthen its global Methyl Methacrylate (MMA) business, effective April 1, it will consolidate its Singapore headquarters functions and rename its main subsidiary as Mitsubishi Chemical Methyl Methacrylate Corporation to unify the MMA business, which is currently scattered around the world. From April 1, Mitsubishi Chemical Methacrylate Japan Co LTD will be established to strengthen its MMA business in the domestic market.
Mitsubishi Chemical UK is a producer of methyl methacrylate (MMA) and other methacrylate salts, ethylene-vinyl alcohol copolymers, specialty polymers and resins, and electrolytes for lithium-ion batteries.
Mitsubishi Chemical says its MMA business involves 11 monomer production plants and six polymers around the world.
Mitsubishi Chemical UK is a producer of methyl methacrylate (MMA) and other methacrylate salts, ethylene-vinyl alcohol copolymers, specialty polymers and resins, and electrolytes for lithium-ion batteries.
Mitsubishi Chemical says its MMA business involves 11 monomer production plants and six polymers around the world.
