Home / Knowledge / News / Textiles / Mitsubishi Chemical to offload PTA units in China, India
Mitsubishi Chemical to offload PTA units in China, India
29
Jul '16
Courtesy: Mitsubishi chemical
Courtesy: Mitsubishi chemical
Japanese petrochemicals major Mitsubishi Chemical Holdings has decided to sell off its Chinese and Indian operations that make a polyester feedstock in light of a persistent glut of the acid, the Nikkei Asian Review has reported.

The Japanese company once held the world's second-largest market share in purified terephthalic acid, or PTA. But with Chinese manufacturers increasing output since 2012, resulting in an oversupply, and operating loss for four straight years since fiscal 2012.

While Mitsubishi Chemical will unload shares in its Chinese unit to an oil refinery in Ningbo, Zhejiang Province, it will offload those in an Indian unit to a U.S. fund that owns a chemical manufacturing plant in West Bengal state.

The two transactions are expected to total between 10 billion yen to 20 billion yen ($95.5 million to $191 million). The divestment, to be completed by the end of 2016, will cut annual revenue by 150 billion yen or so, Nikkei Asian Review said.

However, the company will keep its PTA business in Indonesia, which supplies chiefly to group operations, as well as one in South Korea where Mitsubishi Chemical holds a stake in a production facility of an affiliate not included in its group results.

Mitsubishi Chemical has been restructuring its petrochemical operations since around 2007, when Yoshimitsu Kobayashi -- the current chairman -- became the president. The company already has withdrawn from operations worth more than 300 billion yen in annual sales.

While shrinking production of ethylene and general-purpose materials, Mitsubishi Chemical will focus investment on more lucrative growth operations such as carbon fiber, health-care materials and advanced resins, it said. (SH)

Fibre2Fashion News Desk – India

Must ReadView All

Textiles | On 18th Jan 2017

China lays out plan to boost foreign investment

The Government of China has outlined measures to boost foreign...

Prime Minister Theresa May speaking on the UK government's negotiating objectives for exiting the EU. Courtesy: UK government

Textiles | On 18th Jan 2017

UK to pursue trade agreements with other countries

The United Kingdom will pursue free trade agreements with the EU and...

Courtesy: IMF

Textiles | On 18th Jan 2017

Risks to global growth outlook skewed to downside: IMF

Risks to the global growth outlook are two sided but are assessed to...

Interviews View All

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search