At a board meeting held on 2 February, the company approved the termination of the coke and carbon materials business including needle coke and pitch coke under its consolidated subsidiary Mitsubishi Chemical. Under the plan, production is expected to be fully halted in the second half of fiscal year 2027.
According to the company, the discontinuation of operations is expected to result in a one off loss of approximately 85 billion yen. Of this amount, around 19 billion yen will be recorded in the third quarter of the fiscal year ending March 2026, while the remaining approximately 66 billion yen will be recognized as an estimated loss in the fourth quarter of the same fiscal year.
The company stated that it has taken various steps in recent years to improve profitability, including downsizing production scale, reviewing its sales portfolio, and implementing cost reduction measures. It emphasized that profits in the coke segment have increased steadily through reductions in fixed costs, while price revisions and comprehensive cost saving measures were implemented in carbon materials.
The business segment to be discontinued includes the production of coke and carbon materials. However, pitch based carbon fiber and related products as well as anode materials produced at the Kagawa facility are excluded from this scope. Production was carried out at the Mitsubishi Chemical Kagawa plant in Sakaide City, Kagawa Prefecture in Japan. Sales from this business segment amounted to approximately 115.8 billion yen in the fiscal year that ended in March 2025.
Under the company’s plan, production will be halted in the second half of fiscal year 2027, followed by a gradual phase out of sales and the step by step dismantling of facilities. Mitsubishi Chemical emphasized that this move is part of its strategy to reallocate resources toward more sustainable and higher value added areas.
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