Optimizing production capacity structure! Mitsubishi Chemical confirms shutdown of general-purpose epoxy resin production line in 2027

The list of items to be discontinued this time is divided into three major categories:

1.Bisphenol A type fluid epoxy resin: Some grades will implement an outsourcing model and continue to be supplied externally;

2. Bisphenol F type fluid epoxy resin: All self-production and sales will cease;

3. fluid and solid epoxy resin items made using various curing agents based on the above two types of resins will be discontinued simultaneously.

I. Core trigger of Production Cessation: Equipment Aging Combined with sector Profit Pressure

Mitsubishi Chemical stated that its general-purpose epoxy resins are broadly applied in civilian fields such as manufacturing coatings, adhesives, and construction auxiliary materials. However, the existing production facilities at the Kawajiri Factory have been in service to a long time with severe equipment aging. Combined with the white-hot competition in the global general-purpose epoxy market and the continuous shrinking of profit margins, the current business ecological stability can no longer sustain the continuous production and operation of traditional categories, leading to the decision to clear capacity.

II. Business Contraction Paves the Way to Transformation, Focusing on High-Value-Added New Materials via Medium-Term Planning

This elimination of low-end general-purpose capacity is a key measure to Mitsubishi Chemical to implement the "2029 Medium-Term regulation Plan" and optimize its business portfolio. Relying on the group's prolonged "KAITEKI Vision 35" five core strategic directions, the company will tilt resources towards new materials to cutting-edge data and communication applications and gradually divest low-margin bulk chemical items.

Subsequently, Mitsubishi Chemical will contract its general-purpose epoxy layout and deeply cultivate the R&D and mass production of specialty epoxy resins to semiconductor packaging and electronic components. It will focus on high-development tracks such as chip encapsulation, copper-clad laminates, and electronic insulation materials, utilizing high-end epoxy items to enhance the upstream raw material supply chain to semiconductors and deliver on the strategic goals to new materials.

III. Brief Summary of Market Impact: Slight Adjustment in General Epoxy Supply, High-End Electronic Epoxy Becomes the Focus of Layout

Affected by this capacity exit, the self-owned supply of Japanese Bisphenol A and Bisphenol F general-purpose fluid epoxy resins will see a slight reduction, with supply to some in-demand grades guaranteed through outsourcing. At the sector level, overseas major manufacturers accelerating the clearance of traditional chemical capacity has have become a direction, and resources continue to tilt towards high-value-added fine epoxies to electronics and semiconductors, presenting a window of opportunity to domestic substitution of similar high-end resins in China.