Mitsubishi Gas Chemical halts Dutch MXDA plant construction on rising costs

Mitsubishi Gas Chemical Company, through its consolidated subsidiary MGC Specialty Chemicals Netherlands B.V. (MSCN), has decided to temporarily suspend construction of its meta-xylylenediamine (MXDA) manufacturing facility. This decision, made at a board meeting on September 17, 2025, follows significant delays, soaring construction costs, and a changing market environment for MXDA.

The project, initially aiming for production to start in July 2024, faced delays from contractor changes and increased construction and labor costs, partly due to the Russia-Ukraine conflict. Furthermore, the competitive landscape in the MXDA market has shifted, leading to a deterioration in the project's original profitability projections. MSCN, established in January 2021 and 100% owned by Mitsubishi Gas Chemical, planned an annual production capacity of 25,000 MT with an initial capital of €20m.

Mitsubishi Gas Chemical is currently reviewing the project’s viability and business plan, including whether to continue construction. The company is assessing the impact of this temporary suspension and future decisions on the group's consolidated earnings for the fiscal year ending March 2026 and will promptly disclose any material developments.