Mitsubishi Chemical Corp. no longer plans to build a plant making methyl methacrylate (MMA) in Geismar, La.
Officials with Mitsubishi in Tokyo announced the decision Dec. 9, 2024. The plant would have had annual production capacity of almost 800 million pounds of MMA, which can be used as a feedstock to make acrylic resin. The project first was announced in late 2020.
Mitsubishi has decided not to pursue the plan "due in part to the prospect of meeting immediate demand with existing MMA facilities in Tennessee and elsewhere," officials said. They added that a failure to obtain long-term commitments on MMA transactions with customers also played a role in the decision.
Mitsubishi "will continue to optimize its global production system by establishing new business locations and consolidating existing ones to boost the competitiveness of its MMA business," officials said.
In relation to the canceled plant, Mitsubishi will record a loss of around $125 million for the quarter ending March 31.