Mitsubishi Chemical Group is evaluating the establishment of a new manufacturing facility in India to produce methyl methacrylate (MMA), a core acrylic material used across automotive, industrial and consumer applications. The company is aiming to conclude a decision on the proposed investment by March 2027, with potential commercial production targeted around 2030, as it reviews options to expand in growth markets while rationalising capacity elsewhere.
According to a report by Nikkei, the company plans to carry out feasibility studies over roughly one year to assess the commercial and operational viability of producing MMA locally in India. The move would represent Mitsubishi Chemical’s first MMA manufacturing presence in the country, despite India being viewed internally as a market with rising demand for acrylic materials.
In the Nikkei report, Manabu Chikumoto said the group recognises underlying demand in India but currently lacks a local production base, prompting it to set a target of March 2027 to reach a final decision. He also indicated that India’s MMA market is comparatively shielded from competitive pressure from large exporting countries, particularly China, which could improve the economics of domestic production.
MMA is a highly transparent plastic used in products such as automotive lamp covers, signage, aquariums and various industrial components. Mitsubishi Chemical Group is the world’s largest producer of MMA, accounting for about 30 percent of global production capacity. However, the segment is cyclical and exposed to shifts in end-market demand, making capacity discipline and geographic balance an increasing focus for the company.
The MMA business generated core operating profit of JPY 35.7 billion in the fiscal year ended March 2025, but the company expects the segment to record a core operating loss of around JPY 1 billion in the current fiscal year. Mitsubishi Chemical has said it is seeking more sustainable growth by reducing exposure at less competitive facilities while expanding in markets where demand growth and pricing conditions are more favourable.
Mitsubishi Chemical currently operates nine MMA production sites globally, including facilities in Japan, China, South Korea, the United States and the United Kingdom, with total annual capacity of about 1.38 million metric tonnes. The company is reviewing its footprint in Asia and has indicated that some sites could face downsizing or closure, particularly where operations rely heavily on exports.
Chikumoto told Nikkei that increasing capacity in China is an important consideration in these reviews, especially in cases where export volumes struggle to secure domestic sales channels. Among the group’s Asian assets, facilities in South Korea and Taiwan are understood to have higher exposure to export-oriented shipments.
In January 2025, Mitsubishi Chemical decided to abandon plans for a new MMA plant in the United States that would have used its proprietary low-cost, low-emission production process. The project, which had been under evaluation for more than a decade, was shelved after difficulties in securing customers and rising construction costs.
Mitsubishi Chemical Group is headquartered in Japan and operates across performance materials, industrial chemicals and specialty products, supplying customers in sectors including automotive, electronics and infrastructure.