Sumitomo Chemical to discontinue cyclohexanone production by March 2024 amid rising raw material prices and depressed market; move is part of restructuring efforts for short-term performance improvement

Sample article from our Chemicals Industry

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/

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.

See our dashboard in action - schedule an demo
Chelsey Quick
Chelsey Quick
- VP Client Success -

We offer built-to-order chemicals industry coverage for our clients. Contact us for a free consultation.

About Us

We deliver market news & information relevant to your business.

We monitor all your market drivers.

We aggregate, curate, filter and map your specific needs.

We deliver the right information to the right person at the right time.

Our Contacts

1990 S Bundy Dr. Suite #380,
Los Angeles, CA 90025

+1 (310) 553 0008

About Cookies On This Site

We collect data, including through use of cookies and similar technology ("cookies") that enchance the online experience. By clicking "I agree", you agree to our cookies, agree to bound by our Terms of Use, and acknowledge our Privacy Policy. For more information on our data practices and how to exercise your privacy rights, please see our Privacy Policy.