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 The company already has withdrawn from operations worth more than 300 billion yen in annual sales.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

Union Minister for finance Arun Jaitley chairing the 25th GST Council meeting, flanked by minister of state for finance Shiv Pratap Shukla (right) and finance secretary Dr Hasmukh Adhia. Courtesy: PIB

Textiles | On 20th Jan 2018

GST rate on velvet fabric reduced to 5%

The 25th Goods and Services Tax (GST) Council meeting, held under the ...

RIL petrochemicals’ revenue grows 47.6% in Q3 FY18

Textiles | On 20th Jan 2018

RIL petrochemicals’ revenue grows 47.6% in Q3 FY18

The revenue from the petrochemicals segment at Reliance Industries...

Courtesy: Cotton USA

Textiles | On 20th Jan 2018

US cotton bodies pledge to support CCI activities

Ten US cotton organisations have pledged industry contributions in...

Interviews View All

Headhonchos
Indian textile value chain

'One nation, one tax' is a great concept

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Urmil Arya

Sushila International, a well established textile organisation established ...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

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 2018

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search