Japan's Mitsubishi Chemical Corporation (MCC) has announced to shut down it 250,000 tpa terephthalic acid production facility at the Matsuyama Plant by December 2010 and to halt its 100,000 tpa paraxylene production facility in Mizushima Plant by May 2010. In addition, the company will also shift a part of headquarters operations of its terephthalic acid business from Japan to Singapore and India to reform the business structure in Asia. According to a company statement, the decision was taken due to severe decline in domestic terephthalic acid demand showing no signs of improving in the near future.
The terephthalic acid produced at the Matsuyama Plant is mainly supplied to domestic manufacturers of polyester fibers and films as raw materials while the entire output of paraxylene produced at Mizushima Plant is used as raw material for terephthalic acid production at the Matsuyama Plant. MCC plans to move headquarters operations for the terephthalic acid business to Singapore in June 2009 and for the technology to India (Haldia, West Bengal) at the end of 2009 , in order to establish a new business model.