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

On May 27, Mitsubishi Chemical officially announced the decision to shut down multiple epoxy resin production lines at the Kawajiri Factory of the Tokai Works in Yokkaichiichi, Mie Prefecture, Japan, on September 30, 2027, terminating the production and external sales of the corresponding product grades.

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

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

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

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

I. Core Cause of Production Cessation: Equipment Aging Combined with Industry Profit Pressure

Mitsubishi Chemical stated that its general-purpose epoxy resins are widely used in civilian fields such as industrial coatings, adhesives, and construction auxiliary materials. However, the existing production facilities at the Kawajiri Factory have been in service for 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 environment 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 for Transformation, Focusing on High-Value-Added New Materials via Medium-Term Planning

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

Subsequently, Mitsubishi Chemical will contract its general-purpose epoxy layout and deeply cultivate the R&D and mass production of specialty epoxy resins for semiconductor packaging and electronic components. It will focus on high-growth tracks such as chip encapsulation, copper-clad laminates, and electronic insulation materials, utilizing high-end epoxy products to improve the upstream raw material supply chain for semiconductors and deliver on the strategic goals for 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 liquid epoxy resins will see a slight reduction, with supply for some in-demand grades guaranteed through outsourcing. At the industry level, overseas major manufacturers accelerating the clearance of traditional chemical capacity has become a trend, and resources continue to tilt towards high-value-added fine epoxies for electronics and semiconductors, presenting a window of opportunity for domestic substitution of similar high-end resins in China.