MOSCOW (MRC) -- Mitsubishi Chemical will withdraw from its acrylic fibres business at the company's Hiroshima plant next year amid declining global demand and high raw material costs, said the company.
The company will end production of its Vonnel acrylic fibres at the end of March 2023 and stop output of its Vonnel M.V.P short-cut acrylic (polyacrylonitrile-based) fibres at the site at the end of August next year, the company said in a statement on 21 December.
Mitsubishi Chemical will end sales of both products at the end of December 2023.
"As the business environment becomes more severe due to declining global demand and soaring prices of raw materials and fuels, the MCG Group [Mitsubishi Chemical Group] has concluded that it is difficult to further improve profitability even with business restructuring measures, including withdrawal from general-purpose products, and therefore reached the decision to withdraw from the business," the company added.
The company developed its acrylic fibre products for clothing such as sweaters, cut and sewn products, underwear, socks and eco-fur; interiors, such as blankets and carpets; materials, such as non-woven fabrics.
We remind, Mitsubishi Chemical Group Corporation announced the start of labormanagement consultation on cessation of the production of methacrylates (MMA) at Mitsubishi Chemical UK's Cassel, said the company. Site, and announced today that its Corporate Executive Officers Committee resolved in the day to cease the
production of methacrylates at its Cassel Site subject to completion of the labor-management consultation.