Mitsubishi Gas Chemical halts construction of MXDA facility in Netherlands

Mitsubishi Gas Chemical Company, Inc. (MGC) has decided to discontinue the construction of a meta-xylenediamine (MXDA) production facility at its subsidiary, MGC Specialty Chemicals Netherlands B.V. (MSCN).

This decision was made during a Board of Directors meeting on February 20, 2026.

The 25,000 tonnes/year MXDA plant was to have been built in Rotterdam to meet growing market demand in the epoxy, polyamide, and isocyanate sectors. MXDA is primarily used in epoxy coatings for infrastructure applications due to its excellent anticorrosion properties.

The construction was initially suspended due to delays, increased costs, and intensified market competition.

MGC evaluated the recoverable value of MSCN’s noncurrent assets, leading to recorded impairment losses, which were disclosed in financial results announcements in November 2025 and February 2026.

The company says it explored options such as resuming construction or partnering with external companies but concluded that the MXDA facility would not be profitable.

The company plans to proceed with shutting down the facility, including equipment removal, by the end of 2029.