Continuation of the carbon materials business (needle coke and pitch coke)
Mitsubishi Chemical Corporation (the Company's consolidated subsidiary)
Kagawa Site, carbon materials (needle coke and pitch coke), and raw materials for pitch-based carbon fiber
Following a review prompted by the rapid expansion of AI- and data-center-related businesses, the Company determined that it would be difficult to achieve the performance targeted for its pitch-based carbon fiber using raw materials supplied by other companies. The Company concluded that maintaining its raw material manufacturing technology and equipment in-house is essential to maintaining and strengthening its competitiveness.
Approximately ¥9 billion in non-recurring income (reversal of restructuring provisions)
Financial results for the third quarter of the fiscal year ending March 2027
This impact has already been reflected in the full-year consolidated earnings forecast for the fiscal year ending March 2027 announced today
Company response
Production of carbon materials (needle coke and pitch coke) will be temporarily suspended in the second half of fiscal 2027 for equipment refurbishment
Expected in the second half of fiscal 2028
The Company will work to stabilize the quality of pitch-based carbon fiber and strengthen its supply system, and accelerate expansion into applications including 5G/6G communications infrastructure, thermal management for AI servers and data centers, and space-related applications. For carbon materials, the Company will proceed by consulting with customers individually regarding future transactions.
| Item | Details |
|---|---|
| Event name | Continuation of the carbon materials business (needle coke and pitch coke) |
| Date of occurrence | 5 November 2026 (decided at a meeting of the Executive Committee held on this date) |
| Subject Entity | Mitsubishi Chemical Corporation (the Company's consolidated subsidiary) |
| Target Locations / Products | Kagawa Site, carbon materials (needle coke and pitch coke), and raw materials for pitch-based carbon fiber |
| Cause | Following a review prompted by the rapid expansion of AI- and data-center-related businesses, the Company determined that it would be difficult to achieve the performance targeted for its pitch-based carbon fiber using raw materials supplied by other companies. The Company concluded that maintaining its raw material manufacturing technology and equipment in-house is essential to maintaining and strengthening its competitiveness. |
| Amount of Impact on Business Performance | Approximately ¥9 billion in non-recurring income (reversal of restructuring provisions) |
| Accounting period in which recognized | Financial results for the third quarter of the fiscal year ending March 2027 |
| Impact on Earnings Forecast | This impact has already been reflected in the full-year consolidated earnings forecast for the fiscal year ending March 2027 announced today |
| Suspended operations | Production of carbon materials (needle coke and pitch coke) will be temporarily suspended in the second half of fiscal 2027 for equipment refurbishment |
| Scheduled resumption date | Expected in the second half of fiscal 2028 |
| Outlook | The Company will work to stabilize the quality of pitch-based carbon fiber and strengthen its supply system, and accelerate expansion into applications including 5G/6G communications infrastructure, thermal management for AI servers and data centers, and space-related applications. For carbon materials, the Company will proceed by consulting with customers individually regarding future transactions. |
Items this document does not state (14)
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.Following a review prompted by the expansion of AI- and data-center-related businesses, the Company determined that it would be difficult to achieve the targeted performance of pitch-based carbon fiber using raw materials supplied by other companies. The Company concluded that maintaining its raw material manufacturing technology and equipment in-house is essential to maintaining and strengthening the competitiveness of its carbon fiber.