Tokyo--Mitsui Chemicals has set May 2016 as the month it will stop production of MDI at Omuta, Japan and TDI at Kashima, Japan. The decisions will take 60kt/year MDI out of the global market and 117kT/year TDI out of the market, the company said in its annual results announcement.
Mitsui Chemicals used the announcement to confirm that July 2015 is the likely date of the formation of its joint venture in polyurethane chemicals with SKC of Korea.
Mitusi Chemicals' gave more details on how it slowed its losses in 2014.
In 2014, sales were Yen 1500bn ($12.4bn) in 2014, down fractionally on the Yen 1566bn in 2013, but operating income rose from Yen 24.9bn in 2013 to Yen 42bn in 2014, a 69% increase. Polyurethane division profits fell by Yen 1.7bn to Yen 3.5bn or 33% between 2013 and 2014 on sales which fell from Yen 163.8bn in 2013 to Yen 154.8bn in 2014. That is equivalent to a 5.5% decline. Mitsui Chemicals said this was due to a Yen 14bn fall in sales which was offset partially by a Yen 5bn benefit from exchange rates.
Mitsui is rebasing its business away from basic chemicals, which accounted for 66% of operating income in 2006 towards food and packaging (20%), healthcare (30%) and mobility products 40% by 2020,