Dissolution of Co-ownership of MMA Monomer Manufacturing and Sales Business in Taiwan

Mitsubishi Chemical Corporation (Head Office: Chiyoda-ku, Tokyo; President: Manabu Chikumoto; hereinafter “the Company”) hereby announces that the Company has agreed with Kaohsiung Monomer Company Limited (hereinafter “KMC”), a Taiwan-based manufacturer and seller of MMA monomers, and China Petrochemical Development Corporation (hereinafter “CPDC”) to dissolve its co-ownership of KMC with CPDC and transfer all the stocks it holds in KMC to CPDC.
 

1. Background and purpose

The competitive environment of the MMA market has been intensifying in recent years mainly in Asia against the backdrop of large-scale production capacity expansion in China. Recognizing this business environment, the Company reviewed the strategic significance of continuing to own the MMA monomer production base in Taiwan, and decided to dissolve its co-ownership of KMC with CPDC and transfer all of the equity interest held by the Company in KMC to CPDC.
 
Going forward, as an MMA manufacturer that possesses a number of MMA manufacturing technologies and runs production facilities around the world, the Company will consolidate its production facilities into locations where it is relatively more competitive while accelerating entry into markets having high growth potential, as part of efforts to build optimal production and marketing networks.
 

2. Profile of KMC

・Company name: Kaohsiung Monomer Company Limited
・Head office: Kaohsiung, Taiwan
・Established: 1976
・Capital: TWD 500 million
・Business description: Manufacture and sales of MMA monomers (ACH method; annual output capacity: 105,000 tons)
・Ownership ratio: 60%: Mitsubishi Chemical Corporation; 40%: CPDC
 

3. Profile of CPDC

・Company name: China Petrochemical Development Corporation
・Head Office: Kaohsiung, Taiwan
・Established: 1969
・Capital: TWD 37,848,501,300
・Net sales: TWD 19.2 billion (2025)
・Business description: Production of caprolactam, acrylonitrile, etc.
 

4. Planned schedule

Transfer of all of the Company’s equity interest to CPDC will be completed by August 3, 2026.