Mitsubishi Chemical Group has scrapped its planned Louisiana MMA monomer plant due to rising costs, sufficient existing capacity and failed long-term customer agreements.
In short:
- The plant, announced in 2020, was designed to use ethylene from US shale gas through proprietary technology.
- The cancellation will lead to a 20-billion-yen loss in the fiscal year ending March 2025.
- The company will focus on optimizing global production and high-value applications as part of its 2029 strategic plan.
Why this matters:
The discontinuation reflects broader economic pressures, including inflation and supply chain costs, which can hinder large-scale industrial investments. It's also worth noting, however, that the proposed plant location was within the petrochemical corridor between Louisiana and Baton Rouge commonly referred to as "Cancer Alley," where cancer rates and air pollution are among the worst in the country. Local residents and environmental activists had long resisted the plant.
