December 4, 2023 (press release) –
Sumitomo Chemical to Exit the Cyclohexanone Business:
Accelerating Business Restructuring as Part of Its Short-Term Intensive Performance Improvement Measures
Dec. 4, 2023
Sumitomo Chemical has decided to close down its production facilities for cyclohexanone (also known as anone) at its Ehime Works located in Niihama City, Ehime, Japan and exit the business. The closure of the production facilities is scheduled for the end of March 2024.
Cyclohexanone is mainly used as an intermediate for nylon. Demand for cyclohexanone was expected to remain solid both in Japan and overseas, but there have recently been significant changes in the business environment, such as soaring raw material prices and a depressed market resulting from the slow recovery of the global economy. In view of these developments, Sumitomo Chemical has determined that it would be difficult to realize stable sales volume or margins for cyclohexanone over the medium- to long-term.
Sumitomo Chemical is implementing short-term intensive performance improvement measures and, as part of these efforts, is accelerating the restructuring of its businesses from the perspective of profitability and the best-owner principle. The Company will steadily advance these measures to ensure a V-shaped recovery in fiscal 2024, while also strengthening its financial position to carry out fundamental structural reforms going forward.
Overview of the cyclohexanone production facilities to be discontinued
| Annual production capacity | 100,000 tons |
|---|---|
| Start of operations | March 1973 |
Contact
Sumitomo Chemical Co., Ltd.
Corporate Communications Dept.
https://www.sumitomo-chem.co.jp/english/contact/public/
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