Mitsubishi Chemical Group Deferred the Commissioning of an MMA Plant in the United States

Methyl Methacrylate

The decision regarding the final investment for the latest methyl methacrylate (MMA) plant in the United States has been delayed by the Mitsubishi Chemical Group (Mitsubishi). The final decision has been postponed by six to eight months as a result of current market volatility. The plant is set to be established in Geismar, Louisiana on the Mississippi River.

The plant will be based on Mitsubishi’s ALPHA technology and have a total capacity of 350,000 tonnes/year. This plant will be ALPHA technology's third and largest commercial application as of its initial development and the primary successful deployment in 2008 by affiliate Lucite International.

The recently finalised project that finished its front-end engineering design (FEED) stage, is now in between the application process for the wetland required and air permits that are anticipated to be granted by 2023, with the first investment decision (FID) awaited in the 2023 fiscal year. The yearly EPCA session will be held during October 4th to 5th, 2022 in Berlin.

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A Planned Investment of USD 915 Million By Mitsubishi Chemical Will Be Made Towards a U.S. Plant as Buy American Pressure Rises

The production of a plastic ingredient by the Japanese company will begin in 2025 in Louisiana. The Japanese chemical company Mitsubishi is set to invest more than USD 915 million (100 billion yen) in building a plant in the state of Louisiana in the United States for an essential ingredient in plastics.

The expenditure will facilitate methyl methacrylate, or MMA, production in the U.S. The key raw material finds application in the manufacturing of acrylic plastics that are employed in a wide range of products, including house paint and auto parts.

The investment by the global manufacturers is a result of the growing shift in preference for U.S. made products along with the proposal for tightening alleged Buy American rules for government procurement by the Biden administration.

The company's functions will begin in 2025 with an annual production capacity goal of 350,000 tonnes making Mitsubishi Chemical's most significant MMA plant across the world, equal to around 10 percent of the entire global demand. The company accounts for around 40 percent of the global market share for raw materials.

Moreover, the new facility will boost the company's total supply capacity by 20 percent. The company has thus far acquired the site and is now handling the additional details. The total investment of the company would increase to approximately USD 103 billion (150 billion yen).

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The company will introduce its proprietary production process in the new factory that is previously in use at its plant located in Saudi Arabia. The production cost of the facility is considered to be lesser than half of their counterparts in China who use the standard manufacturing techniques. The chemical company can cut their manufacturing costs by employing ethylene derived from United States shale gas.

According to Procurement Resource, the Mitsubishi Chemical Group has heavily invested in a U.S. manufacturing plant to produce methyl methacrylate (MMA). The investment is a result of the growing interest towards the U.S. made products.

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