Expecting a greater inflow of cheap plastic intermediates from the Middle East combined with a reduced domestic and international demand, chemical maker Mitsubishi Chemical Corporation (MCC) has decided to quit caprolactam and styrene monomer businesses within a span of two years. In a press statement, the company said it did not see 'long term value' in producing these raw materials as the products from Middle East based on inexpensive feedstocks will glut the market in near future. Caprolactam is the raw material of nylon6 used for engineering plastic and fiber. Styrene monomer is the raw material of polystyrene (PS) resin, ABS resin, EPS and synthetic rubber.
As a part of restructuring, MCC will shelve production at all its plant under Caprolactam business by March 2010. This includes its caprolactam and cyclohexanone production facilites at Kurosaki Plant (Kitakyushu-shi, Fukuoka) and cyclohexanone production facility at Mizushima Plant (Kurashiki-shi, Okayama). The total capacity under Caprolactam business to go offstream will be 120,000 tpa of cyclohexan, 110,000 tpa of cyclohexanone, and 60,000 tpa of caprolactam. Under Styrene Monomer business, the company will shut its 371,000 tpa capacity SM production facility at Kashima Plant (Kamisu-shi, Ibaraki) by March 2011.
30-May-09 
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