Mitsubishi Chemical Corporation announced its decision to withdraw from the polyester resin for printer toner manufacturing business by June 30, 2026.
Mitsubishi Chemical Corporation (MCC) announced today its strategic decision to withdraw from the polyester resin for printer toner manufacturing business. The move, effective with the cessation of production by March 31, 2026, and sales by June 30, 2026, marks the end of a business line that has been operational since 1989. This withdrawal reflects the company's response to significant and sustained profitability pressures in the face of evolving market dynamics.
The company's flagship product in this segment, Diacron™ polyester resin, has been a key component in printer toner for decades. However, the landscape of the printing industry has undergone a substantial transformation, largely accelerated by global trends towards digitalization and remote work. The shift toward paperless operations, intensified by changes in workstyles following the COVID-19 pandemic, has led to a noticeable decline in overall printing demand. This fundamental market contraction has directly impacted the demand for printer toner, and consequently, the specialized resins used in their production.
Beyond the decline in demand, Mitsubishi Chemical cited a confluence of challenging economic factors that have further eroded the profitability of this business. The recent sharp rise in raw material prices has significantly increased production costs, while increasing labor costs have added to the operational burden. Despite implementing various measures, including streamlining operations and reducing fixed costs, the company has concluded that the prospects for improving profitability or achieving future growth in this particular segment are limited.
This decision by Mitsubishi Chemical is not an isolated incident in the chemical and printing industries. Other major players, such as Mitsui Chemicals, have also announced similar withdrawals from the toner binder polyester resin business, highlighting a broader industry trend of re-evaluating less profitable segments. While the overall printing toner market is still projected to see some growth, driven by packaging applications and digital printing advancements, the specialized market for conventional printer toner resins appears to be facing sustained headwinds.
The withdrawal will impact the production and sales operations at Mitsubishi Chemical's Tokai Plant, located in Toyohashi-shi, Aichi. The company will be working towards a planned cessation of production by March 31, 2026, followed by the complete cessation of sales activities by June 30, 2026.
Mitsubishi Chemical Corporation's decision underscores a strategic realignment, focusing its resources on areas with greater potential for long-term growth and profitability.
