Temporary Suspension of Construction Work at MGC Specialty Chemicals Netherlands B.V.

Company name: Mitsubishi Gas Chemical Company, Inc.
Representative: Yoshinori Isahaya, Representative Director & President
Securities code: 4182 (The Prime Market of the Tokyo Stock Exchange)
Contact: Satoshi Takizawa, Division Director, CSR & IR Division
TEL: +81-3-3283-5041

Temporary Suspension of Construction Work at MGC Specialty Chemicals Netherlands B.V. 

 Mitsubishi Gas Chemical Company, Inc. (MGC) announced that it has decided at its Board of Directors meeting held on September 17, 2025 to temporarily suspend construction work of a meta-xylenediamine (MXDA) production facility at its consolidated subsidiary in the Netherlands, MGC Specialty Chemicals Netherlands B.V. (hereinafter “MSCN”), citing construction delays, significant increases in construction costs, and changes in the market environment.

1. Reason for suspension

 As announced in its press release dated September 29, 2021, MGC had been constructing an MXDA production facility at MSCN to establish a new production site in Europe, which is the largest market for MXDA, aiming to start production from July 2024. However, the project encountered construction delays due to a mid-construction change in one of the contractors, as well as significant increases in construction and labor costs caused by the Russia-Ukraine conflict, and changes in the MXDA market environment. These changes raise the possibility that the commercial viability of the project may deteriorate from the initial plan. In light of the situation, MGC has decided to temporarily suspend construction work at MSCN in order to review the business plan, including whether to continue the project.

2. Overview of MSCN

3. Outlook

 The MGC Group is currently examining the impact of the temporary suspension of construction work and its pending decision on the future direction of the project on its consolidated financial results for the fiscal year ending March 31, 2026, and will promptly make an announcement should any matters requiring disclosure arise.

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