Mitsui to restructure polyurethane, close plants and enter merchant TDI market

Simon Robinson
URETHANES TECHNOLOGY INTERNATIONAL

Published: February 11, 2014 11:56 am ET
Updated: February 11, 2014 11:59 am ET

Image By: Mitsui Chemicals Inc. Toshikazu Tanaka, president and CEO Mitsui Chemicals Inc.

Related to this story

Topics Materials, Materials Suppliers
Companies & Associations Mitsui Chemicals Inc.

Mitsui Chemicals Inc's future business in polyurethanes lies in specialty grades and will be more closely aligned to the Middle East, said Toshikazu Tanaka, president and CEO, as he announced a major business restructuring.

The restructuring, which will see Japanese facilities close, is an attempt to stem losses and return to profitability, the company said in a statement on Feb. 6.

Speaking during Mitusi Chemical's quarterly results announcement, Tanaka said: "With unwavering determination, we will initiate the measures and tactics full force to assure realization of a V-shaped turnaround."

The Tokyo-based company is struggling with costs, according to the announcement. Sales grew from Yen 1406 billion ($13.7 billion) in 2012 to an estimated Yen 1570 billion in 2013, said Tanaka. He said the firm's operating loss would grow from Yen 4.3 billion to Yen 25 billion and has taken a Yen 32 billion charge in 2013 to pay for restructuring. Tanaka also promised to cut director salaries by 12-20 percent, and bonuses too. He added that the company expected to start paying a dividend to shareholders at the end of 2014 financial year.

Mitsui's polyurethane business saw its loss of Yen 2.6 billion in 2012 grow to an estimated Yen 4 billion in 2013, said Tanaka.

In future, Mitsui plans to focus on coating engineering materials in polyurethane through specialty isocyanates, which account for 36 percent of the company's Yen 170 billion sales in the sector. Mitsui's portfolio of plants in its general polyurethanes sector, which account for 64 percent of sales in the business sector, will be optimized, he said.

A complete version of this story is available at utech-polyurethane.com.


Comments

Mitsui to restructure polyurethane, close plants and enter merchant TDI market

Simon Robinson
URETHANES TECHNOLOGY INTERNATIONAL

Published: February 11, 2014 11:56 am ET
Updated: February 11, 2014 11:59 am ET

Post Your Comments


Back to story


More stories

McCann expanding in Ohio

December 17, 2014 11:59 am ET

Compounding firm McCann Plastics will spend $1.2 million on an expansion project that will create 15 new jobs at its plant in Green, Ohio.    More

French firm acquires Zimmer-brand polymer technology

December 15, 2014 4:18 pm ET

The deal includes technologies for the processing of polyesters and nylons, and approximately 40 researchers and engineers.    More

Image

Bioplastics global production capacity

December 15, 2014 10:14 am ET

   More

Image

Israeli compounder building $13.1 million facility in North Carolina

December 12, 2014 1:14 pm ET

Tosaf USA, a subsidiary of Kfar Yona, Israel-based Tosaf Compounds Ltd., will build a compounding and masterbatch production facility in North...    More

Image

PPS resin maker Lumena cuts production after ‘difficulties’ with banks

December 12, 2014 11:47 am ET

Polyphenylene sulfide resin maker China Lumena New Materials Corp. said it’s having difficulty “maintaining the continual support” o...    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events