KH Neochem to halt solvent production at Yokkaichi plant by 2025

The solvents subject to the discontinuation of production and sales are primarily used as raw materials for paints and inks. However, in addition to the slow recovery in demand, rising raw material prices and increasing fixed manufacturing costs have further intensified the challenges of the business environment. Although we have continuously implemented initiatives such as improving production efficiency, we have determined that securing profitability necessary to sustain this business over the medium to long term is no longer feasible.

Moving forward, we will continue to transform our business portfolio and promote Sustainable Management by contributing to a sustainable society through our distinctive materials that are indispensable to the world, while also ensuring the ongoing growth of our corporate value.

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Fibre2Fashion News Desk (RM)