January 08, 2025 [ICIS]- Mitsubishi Chemical Corp (MCC) said on Tuesday it has decided not to proceed with its planned 350,000 tonne/year methyl methacrylate (MMA) project at Geismar, Louisiana.
The company failed in negotiations with customers “to obtain long-term commitments on transactions,” it said
MCC expects to be able to meet immediate demand with existing MMA monomer manufacturing facilities in Tennessee and elsewhere, it said.
“Global demand for MMA monomer exceeds three million tonnes annually, and stable market growth is expected to continue,” it added.
The Geismar project, announced in December 2020, would have used ethylene derived from US shale gas.
MCC had acquired a construction site at Geismar and was working on the project’s engineering design and on obtaining permits and approvals.
The company expects to record a loss of about Japanese yen (Y) 20 billion (US$127 million) in connection with the decision not to proceed with the project, it said.
Meanwhile, MCC would continue to optimize its global production system by establishing new business locations and consolidating existing ones to boost the competitiveness of its MMA business, it said.
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