Mitsui Chemicals to Withdraw from Optical Filter Business for PDP
March 10, 2008
Mitsui Chemicals, Inc.
Mitsui Chemicals Inc., (“MCI”) has decided to withdraw from the optical filter business for PDP (“the business”) described as follows:
1. Background and Reason
The business has been promoted by the Performance Materials Business Sector of MCI thus far. However, the business has been facing some severe conditions such as a rapid decline in prices triggered by a market glut for flat-panel TV displays including PDP and liquid crystal displays, leading to a significant decline in the price of optical filters.
Under such difficult conditions, MCI has committed itself to maintaining the business including cutting costs and so on. However, it has not satisfactorily compensated for the decline in prices, and the business has been struggling recently.
Amid such trends, MCI determined that it is difficult to turnaround the business in the future and has decided to withdraw from the business.
MCI recently mapped out its 2008 Mid-term Business Plan, in which the mission of the Performance Materials Business Sector as “Establish high-profitability as a growth driver.” In order to achieve it, the Business Sector has set its Basic Strategy as “Expand functional polymers and restructure business portfolio” to further improve its business performance.
2. Summary of the Business Withdrawal
- (1) Business:
- Manufacturing and sale of optical filters for PDP
- (2) Schedule:
- Withdrawal at the end of March, 2008
3. Impact on MCI’s Financial Performance
It is anticipated that some losses will be incurred by this withdrawal. Accordingly, the outlook for FY2007 are currently under review. The outlook may be corrected according to the review, as may be necessary.
