Withdrawal from the natural higher alcohols business
New Japan Chemical Co.,Ltd. (filing company)
External sales business for natural higher alcohols, including Conol® products. Sales of Conol® 2265 and 2280 will continue.
The competitive environment has deteriorated significantly due to low-priced products from overseas manufacturers, mainly in Southeast Asia, and excess supply in the market. In light of the decision to dissolve the joint venture, the Company determined that it would be difficult to continue the business under the existing business model and improve profitability.
Costs associated with the withdrawal from the business, including impairment losses on certain equipment, are expected to arise. The amount is currently under review, and the figure is Not disclosed.
The Company has separately published a notice regarding revisions to its consolidated earnings forecast for the full fiscal year ending March 2027, including this matter. The impact of costs associated with the withdrawal is currently under review.
Company response
The Company will withdraw from external sales of natural higher alcohols, excluding Conol® 2265 and 2280, by around March 2027.
While arranging the supply of alternative products and taking other measures, the Company will withdraw from external sales by around March 2027 and shift management resources to growth areas. Employees and others engaged in the business will be appropriately reassigned, including transfers to other production divisions and growth businesses.
The Company will promptly disclose any matters that require disclosure.
| Item | Details |
|---|---|
| Event name | Withdrawal from the natural higher alcohols business |
| Date of occurrence | 7 August 2026 (date of board resolution) |
| Subject Entity | New Japan Chemical Co.,Ltd. (filing company) |
| Target Locations / Products | External sales business for natural higher alcohols, including Conol® products. Sales of Conol® 2265 and 2280 will continue. |
| Cause | The competitive environment has deteriorated significantly due to low-priced products from overseas manufacturers, mainly in Southeast Asia, and excess supply in the market. In light of the decision to dissolve the joint venture, the Company determined that it would be difficult to continue the business under the existing business model and improve profitability. |
| Amount of Impact on Business Performance | Costs associated with the withdrawal from the business, including impairment losses on certain equipment, are expected to arise. The amount is currently under review, and the figure is Not disclosed. |
| Impact on Earnings Forecast | The Company has separately published a notice regarding revisions to its consolidated earnings forecast for the full fiscal year ending March 2027, including this matter. The impact of costs associated with the withdrawal is currently under review. |
| Suspended operations | The Company will withdraw from external sales of natural higher alcohols, excluding Conol® 2265 and 2280, by around March 2027. |
| Outlook | While arranging the supply of alternative products and taking other measures, the Company will withdraw from external sales by around March 2027 and shift management resources to growth areas. Employees and others engaged in the business will be appropriately reassigned, including transfers to other production divisions and growth businesses. |
| Planned follow-up disclosure | The Company will promptly disclose any matters that require disclosure. |
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 competitive environment has deteriorated significantly due to low-priced products from overseas manufacturers, mainly in Southeast Asia, and excess supply in the market. In light of the decision to dissolve the joint venture, the Company determined that it would be difficult to continue the existing business model and improve profitability. The withdrawal is also intended to shift management resources to growth areas and improve the Company's earnings structure.