Termination of Aniline Production
January 30, 2009
Mitsui Chemicals, Inc.
Mitsui Chemicals Inc., (“MCI”) announced today that it has decided to withdraw from aniline sales and terminate its production at the company’s Ichihara Works.
1.Outline
a.Production Facility: Aniline Production Plant at MCI’s Ichihara Works
b.Production Capacity: 66,000 tons per annum
c.Termination Date: March 2009
(Termination of Sales scheduled for September 2009)
2.Background
Aniline, a phenol derivative, is one of MCI’s Basic Chemicals Business Sector and Phenol Operations products. Increased production of aniline by MDI related manufacturers has resulted in a decrease in market demand. As it is no longer possible to secure a satisfactory cost performance in aniline production and its sales at MCI, the company has decided to withdraw from the said market.
3.Effect on Operations
At MCI, only 1% of phenol needs is for aniline. Predicted growth in market demand of phenol and its derivative bisphenol are expected to sustain growth and profitability of MCI’s phenol operations. Any termination of aniline production is predicted to have minimal effect on operations and profitability.
Mitsui Chemicals Polyurethanes, Inc.’s Ohmuta Works, which uses aniline produced at its own plant as a material in MDI production, will continue production of the material.
