Mitsubishi Chemical Corporation Curtails Solid Epoxy Resin Plant Operations
- 03-Sep-2021 7:06 PM
- Journalist: Li Hua
Chinese chemical giant, Mitsubishi Chemical Corporation, on August 30, 2021, announced the suspension of operations at its Mie plant which manufactures solid epoxy resins. The decision was made following the difficulty in carrying out operations as a result of partial plant damage.
The company indicated that the repair of the damage may not be able to reinstate the plant to its full strength, and the restoration will extend longer. The company has discontinued accepting orders for some of the impacted product ranges. The stipulated duration of time by which the company will begin the supply of all of its solid epoxy resin product lines has not been disclosed.
Solid epoxy resins are solid-state thermosetting resins that are typically prepared from the copolymerization of epoxides with hydroxyl functionalities-containing organic compounds. These resins have high demand in the end-user industries that comprise of paints and coatings, building and construction, automotive, electricals and electronics. The demand for solid epoxy resins is expected to witness a healthy CAGR growth of over 5% in the coming five years.
According to the ChemAnalyst market analysis, the halt in plant operations of solid epoxy resin will lead to tight supplies of the product and its derivatives like epoxy ester resins in the market that may consequently lead to a sudden rise in their prices. The predominantly used feedstocks i.e., bisphenol A and epichlorohydrin for solid epoxy resin production will also suffer a backlog on the demand side with lower consumption.
As per ChemAnalyst, a long-term halt in the plant operations may impact the market competitiveness and the trader network of Mitsubishi Chemical Corporation.