Mitsubishi Chemical cancels MMA plant in Louisiana
Photo courtesy of Mitsubishi Chemical Group

Mitsubishi Chemical cancels MMA plant in Louisiana

Mitsubishi Chemical Group Corporation has announced the discontinuation of its proposed methyl methacrylate (MMA) monomer plant in Geismar, Louisiana, U.S.A., citing inflation-related capital cost increases and challenges in securing long-term customer commitments. 

The project, initially unveiled in December 2020, aimed to use Mitsubishi’s proprietary “New Ethylene Process (Alpha Process)” technology to meet the growing global demand for MMA monomer, a key material for acrylic resins used in automotive, signage, and construction industries.

Despite global MMA demand exceeding three million tons annually, Mitsubishi decided to redirect resources to its existing facilities, including its plant in the U.S. state of Tennessee, to meet market needs. This decision aligns with the company’s “New Medium-Term Management Plan 2029,” which focuses on high-value applications and strategic production optimisation.

The cancellation will result in a loss of approximately JPY20 billion (USD126 million), impacting the company’s earnings for the fiscal year ending March 2025. Mitsubishi Chemical remains committed to strengthening its MMA business through innovation and operational efficiency.