Mitsubishi Gas Chemical Company, Inc. Announces Discontinuation of Construction Work At MGC Specialty Chemicals Netherlands B.V

Mitsubishi Gas Chemical Company, Inc. announced that it has decided at its Board of Directors meeting held on February 20, 2026 to discontinue construction work that had been implemented at MGC Specialty Chemicals Netherlands B.V., a consolidated subsidiary in the Netherlands, to establish a meta-xylenediamine (MXDA) production facility. Details follow. As announced on September 17, 2025, MSCN decided to temporarily suspend construction work of this MXDA production facility due to construction schedule delays, a significant increase in construction costs, intensifying market competition, and other changes in the business environment.

Following this decision, MGC assessed the recoverable value of MSCN's noncurrent assets and thus recorded impairment losses associated with these noncurrent assets. These were publicly disclosed on November 10, 2025 and February 10, 2026 in conjunction with the financial results announcements for the first half and first nine months, respectively, of the fiscal year ending March 31, 2026. Since then, MGC has considered a variety of options, including resuming construction work and partnering with an external company.

However, MGC has concluded that the production and sale of MXDA would not allow MSCN to secure sufficient profit even if the facility in question were to be completed. Thus, MGC decided to discontinue said construction work. Looking ahead, MGC intends to launch procedures toward the shutdown of the facility, including the removal of its equipment, which the Company aims to finish by the end of 2029.

MGC Specialty Chemicals Netherlands B.V. is located at Theemsweg 5, 3197 KM Botlek Rotterdam, Kingdom of the Netherlands. The company is represented by Masatoshi Sato, Managing Director, and was established in January 2021. Its business operations consist of the manufacture and sale of MXDA.

The initial scheduled production start is July 2024, with a production capacity of 25,000 MTA. The company has a capital of EUR 20 million and is 100% owned by MGC. It is a specified subsidiary of the listed company.