Mitsubishi Chemicals Initiates Construction of 350 KTPA MMA Plant in the US

Mitsubishi Chemicals is planning to construct a new resin production plant in the United States. The plant will be located in Louisiana and will be producing methyl methacrylate (MMA). The total cost of the plant will be around USD 915 Million with a production capacity of 350,000 tons/year. The investment will boost the supply of Methyl Methacrylate (MMA) in the US which is used to manufacture acrylic plastics having application in a wide range of products including auto parts and paints.

The company will use its proprietary manufacturing process which employs the “Ethylene to MMA” route, which the company uses at its Saudi Arabia plant which will reduce the cost of manufacturing to less than half of the Chinese counterparts who use general manufacturing methods. The company will be reducing manufacturing costs by using Ethylene derived from the US shale gas.

The factory will start production in 2025, working at full capacity of 350,000 tons/year making the plant the largest in the world which will be able cater to around 10% of total global MMA demand. Mitsubishi Chemicals currently holds 40% of the global market share for Methyl Methacrylate (MMA). The new factory will raise the company’s overall MMA capacity by 20%. 

In its quarterly results for Q1 2022, Mitsubishi reported robust growth in its Methyl Methacrylate (MMA) sales. The company’s sales revenue expanded owing to a rise in the market price for MMA monomer backed by strong demand trends.

As per ChemAnalyst, “MMA prices in the US remained high between July and August due to surge in demand coupled with high raw material costs and low inventory levels reported by several producing companies. The proposed move will also support the expected tightening of the 'Buy American Rules' by the Biden Administration for government procurement which has created a stronger preference for American-made products."