Revision of the Investment Plan for Soarnol™, an Ethylene-Vinyl Alcohol Copolymer Resin, in the United Kingdom
Consolidated subsidiary Mitsubishi Chemical UK Limited
New production facility for Soarnol™, an ethylene-vinyl alcohol copolymer resin, in the United Kingdom (Soarnol House, Saltend Chemicals Park, Hull HU12 8DS, United Kingdom)
Construction involving numerous special design and construction constraints, a complicated contractual and project management structure, delays at various stages, additional safety assessments, and globally rising material and labor costs due to inflation caused construction-related expenses to exceed initial estimates and delayed the construction schedule.
The Company expects to record an impairment loss of approximately ¥30 billion in the fiscal year ending March 2026 on Soarnol-related fixed assets, including investment-related expenses incurred to date.
Fiscal year ending March 2026
The impact has not been reflected in the full-year consolidated earnings forecast for the fiscal year ending March 2026. The Company is currently reviewing its consolidated results and will promptly announce any revision to its earnings forecast if necessary.
The new production facility is scheduled to commence operations in fiscal 2027. The Company will review its consolidated results for the fiscal year ending March 2026 and will promptly announce any revision to its earnings forecast if necessary.
The Company will promptly disclose any revision to its earnings forecast if necessary.
| Item | Details |
|---|---|
| Event name | Revision of the Investment Plan for Soarnol™, an Ethylene-Vinyl Alcohol Copolymer Resin, in the United Kingdom |
| Date of occurrence | 22 April 2026 (the date the revision of the investment plan was decided) |
| Subject Entity | Consolidated subsidiary Mitsubishi Chemical UK Limited |
| Target Locations / Products | New production facility for Soarnol™, an ethylene-vinyl alcohol copolymer resin, in the United Kingdom (Soarnol House, Saltend Chemicals Park, Hull HU12 8DS, United Kingdom) |
| Cause | Construction involving numerous special design and construction constraints, a complicated contractual and project management structure, delays at various stages, additional safety assessments, and globally rising material and labor costs due to inflation caused construction-related expenses to exceed initial estimates and delayed the construction schedule. |
| Amount of Impact on Business Performance | The Company expects to record an impairment loss of approximately ¥30 billion in the fiscal year ending March 2026 on Soarnol-related fixed assets, including investment-related expenses incurred to date. |
| Accounting period in which recognized | Fiscal year ending March 2026 |
| Impact on Earnings Forecast | The impact has not been reflected in the full-year consolidated earnings forecast for the fiscal year ending March 2026. The Company is currently reviewing its consolidated results and will promptly announce any revision to its earnings forecast if necessary. |
| Outlook | The new production facility is scheduled to commence operations in fiscal 2027. The Company will review its consolidated results for the fiscal year ending March 2026 and will promptly announce any revision to its earnings forecast if necessary. |
| Planned follow-up disclosure | The Company will promptly disclose any revision to its earnings forecast if necessary. |
Items this document does not state (15)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The construction involved special design and construction constraints, which complicated the contractual and project management structure and resulted in schedule delays and additional safety assessments. In addition, globally rising material and labor costs due to inflation caused construction-related expenses to exceed initial estimates and delayed the construction schedule.