Notice Regarding Discontinuation of Polycarbonate Production at the Kashima Plant

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

Notice Regarding Discontinuation of Polycarbonate Production at the Kashima Plant 

 Mitsubishi Gas Chemical Company, Inc. (MGC) hereby announces that it has decided, at its Board of Directors meeting held on March 31, 2026, to discontinue operations of the polycarbonate (PC) plant within its Kashima Plant. Operations are scheduled to be discontinued in March 2028.

1. Reason for discontinuation of production

 MGC’s PC business has been facing challenges in terms of profitability and capital efficiency due to a slump in market prices caused by oversupply and other factors. Accordingly, it has been designated as a business requiring intensive management area under the current medium-term management plan (MTMP 2026), and structural reforms have been underway. The Company has conducted various studies aimed at improving profitability across the MGC Group’s production sites. However, the PC plant at the Kashima Plant has continued to operate at low profits, and improvement in profitability is not likely to be expected going forward. As a result, MGC has decided to discontinue operations of the plant in March 2028. Following the discontinuation of the plant, domestic operations will be supported by products supplied from the Group’s overseas facilities. In addition, the Company will continue to steadily implement structural reforms in this business through such means as further optimization of production capacity and a shift toward high-value-added products.
 For employees currently engaged at the plant, MGC will prioritize continued employment and respond appropriately.

2. Overview of the plant slated for discontinuation

  (1) Facility name:                                    Polycarbonate production facility (within the Kashima Plant)
  (2) Production capacity:                        120,000 tonnes / year
  (3) Scheduled discontinuation:            March 2028

Note: Iupizeta^TM EP, the optical resin polymer sold by MGC’s Optical Materials Division, is not subject to this discontinuation.

3. Outlook

 The MGC Group is currently examining the impact of this decision and other implications on its consolidated and non-consolidated operating results for the fiscal year ending March 31, 2026. The Company will promptly make an announcement should any matters requiring disclosure arise.

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