Sumitomo Chemical has decided to close the cyclohexanone production unit at its Ehime plant in Japan and exit the business. The production unit is scheduled to shut down at the end of March 2024.
Cyclohexanone is mainly used as an intermediate for nylon. Demand for cyclohexanone in Japan and overseas is expected to remain stable, but there have been significant changes in the business environment recently, such as soaring raw material prices and a market downturn caused by the slow recovery of the global economy. In light of these developments, Sumitomo Chemical has determined that it will be difficult to achieve stable sales volumes or profit margins for cyclohexanone in the medium to long term.
Sumitomo Chemical is implementing short-term focused performance improvement measures, and as part of these efforts, the company is accelerating business restructuring from the perspective of profitability and best owner principles. The company will steadily advance these measures to ensure a V-shaped recovery in fiscal 2024, while strengthening its financial position to advance fundamental structural reforms.
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