Sumitomo Chemical Co., Ltd. has decided to close two of the three production lines for methyl methacrylate (MMA) monomer and polymethyl methacrylate (PMMA) at its wholly-owned subsidiary Sumitomo Chemical Asia Pte Ltd (“Sumitomo Chemical Asia”), located in Singapore, by the end of September 2024. This will result in an approximately 80% reduction in MMA monomer production capacity and an approximately 70% reduction in PMMA production capacity at the location.

PMMA is a plastic that possesses outstanding transparency and weather resistance, as well as a beautiful gloss. It is used in a wide range of applications, such as automotive taillights, signage, water tanks in aquariums, and optical components of liquid crystal displays. MMA monomer is used as a raw material in both PMMA and coating materials.

While the market conditions for MMA monomer and PMMA are showing signs of recovery after a period of significant slowdown, it is expected that their production capacity, particularly in Asia, will continue to expand going forward. In the midst of these conditions, the Sumitomo Chemical Group has concluded that it will be difficult to secure stable sales volumes and margins in the medium to long term, especially in the area of general-purpose grades of the products. Following these capacity reductions, the Group will focus on specialty and high-value-added PMMA products, in which it can leverage its technological strengths, and transform the structure of this business into one that is stable and resilient to changes in market conditions.

In addition to accelerating the transformation of its existing product portfolio and production systems, Sumitomo Chemical is making a major pivot in its petrochemicals business, and is directing its resources to value creation through environmental impact reduction technology. For PMMA, the Company completed a pilot facility for chemical recycling of the plastic at its Ehime Works in Japan in December 2022, and is currently working on technology validation and marketing activities to implement the chemical recycling technology in society as soon as possible. In May 2024, the Company also signed a collaboration agreement with Lummus Technology, a major U.S. technology licensor, for the licensing and commercialization of chemical recycling technology. Going forward, the Company will further step up its efforts to provide MMA-related solutions.

Sumitomo Chemical is implementing short-term intensive performance improvement measures and, as part of these efforts, is accelerating the restructuring of its businesses from the perspective of profitability and the best-owner principle. The Company will steadily advance these measures to ensure a V-shaped recovery in fiscal 2024, while also carrying out fundamental structural reforms.

Note: The content of this press release has not been edited by Fibre2Fashion staff.

Fibre2Fashion News Desk (HU)