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MITSUBISHI GAS CHEMICAL COMPANY, INC.

4182・Prime Market・Chemicals

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三菱瓦斯化学株式会社 logo
MITSUBISHI GAS CHEMICAL COMPANY, INC.4182

Green Energy & Chemical Division

A basic chemicals segment centered on methanol and aromatic chemicals, with high dependence on equity-method investment gains/losses.

PeriodCurrentPreviousChange
Segment Sales (External Customers)¥277,904 million¥313,392 million↓
Segment Sales (Including Internal Sales, Total)¥286,924 million¥323,199 million↓
Segment Ordinary Income¥3,857 million¥20,516 million↓
Segment Assets¥415,814 million¥464,140 million↓
Depreciation¥13,217 million¥13,751 million↓
Equity in Earnings/Losses of Affiliates△¥807 million¥8,035 million↓
Impairment Loss¥56,145 million¥258 million↓
Investments in Equity-Method Affiliates¥143,348 million¥140,689 million↑

Business Details

Manufactures and sells methanol, methanol/ammonia-based chemicals, life science products, general-purpose and specialty aromatic chemicals, foamed plastics, electricity, and other products. Holds numerous equity-method investments in overseas methanol production companies (Trinidad and Tobago, etc.), giving the segment a structure in which methanol market conditions have a significant impact on ordinary income. Meta-xylylenediamine (MXDA) / Aromatic Aldehyde and Xylene Separation/Derivatives are also key product groups. As a priority management initiative, the company is proceeding with withdrawal from the ortho-xylene chain.

Recent Overview

Ordinary income sharply declined due to falling methanol market conditions, intensifying MXDA competition, and large-scale impairment losses recorded at multiple sites.

In FY2026 (ending March 2026), the methanol business recorded lower revenue and profit due to a decline in methanol market conditions, and an impairment loss was recorded at the methanol production company in Trinidad and Tobago. Equity in earnings of affiliates deteriorated from ¥8,035 million (previous fiscal year) to △¥807 million. MXDA and its derivatives saw revenue and profit decline due to falling selling prices amid intensifying competition and rising fixed costs, and an impairment loss on fixed assets was also recorded at the MXDA manufacturing subsidiary in the Netherlands. Total impairment losses for the segment reached ¥56,145 million. Withdrawal from the ortho-xylene chain business is ongoing.

Key Products

product
Methanol

A structure in which earnings are generated through equity-method investments in overseas methanol production companies such as those in Trinidad and Tobago. Market fluctuations directly affect ordinary income. In FY2026 (ending March 2026), a decline in methanol market conditions led to lower revenue and profit, and an impairment loss was recorded at the methanol production company in Trinidad and Tobago.

product
Methanol/Ammonia-based Chemicals (MMA Products, etc.)

A group of derivative chemicals using methanol and ammonia as raw materials. In FY2026 (ending March 2026), although selling prices declined, profit increased due to higher sales volume of MMA products and lower fixed costs, among other factors.

product
Meta-xylylenediamine (MXDA) / Aromatic Aldehyde

A core product of specialty aromatic chemicals. In FY2026 (ending March 2026), revenue and profit declined due to falling selling prices amid intensifying competition and increased fixed costs. An impairment loss on fixed assets was recorded at the meta-xylylenediamine manufacturing subsidiary in the Netherlands.

product
Xylene Separation/Derivatives (High-Purity Isophthalic Acid, etc.)

The Xylene Separation/Derivatives business. In FY2026 (ending March 2026), revenue declined due to withdrawal from the ortho-xylene chain business, but as this was a year with minor periodic maintenance, repair costs were low, and earnings were roughly in line with the previous fiscal year.

service
Energy Resources & Environmental Business (LNG, Iodine, Geothermal Power, etc.)

A business including sales of LNG for power generation, iodine, geothermal power generation, and other operations. In FY2026 (ending March 2026), revenue declined due to lower sales volume of LNG for power generation, but iodine sales remained solid, and operating income was roughly in line with the previous fiscal year.

Growth Drivers

  • Recovery in methanol market conditions and improvement in equity-method earnings/losses at overseas equity-method affiliates (Trinidad and Tobago, Brunei, Saudi Arabia, etc.) (an improvement in equity-method income is expected in the forecast for the next fiscal year)
  • Reduced depreciation expense effect resulting from the impairment losses recorded (lower fixed cost burden from the next fiscal year onward)
  • Realization of the Carbopath™ environmentally circular methanol concept and efforts toward the practical application of CCS
  • Solid demand in the energy resources business, including iodine and geothermal power generation
  • Improved profitability through restructuring of priority management businesses, including withdrawal from the ortho-xylene chain

Risks

  • Risk of fluctuations in methanol market conditions (a decline in market conditions directly affects ordinary income through equity-method earnings/losses)
  • Intensifying competition in the meta-xylylenediamine business (price competition with Chinese and other competitors, declining sales volume, rising fixed costs)
  • Risk of impairment of fixed assets at overseas manufacturing subsidiaries (large-scale impairment losses recorded in FY2026 (ending March 2026) at the MXDA subsidiary in the Netherlands, the methanol production company in Trinidad and Tobago, and others)
  • Risk of rising energy prices and tightening raw material supply due to escalating tensions in the Middle East (not fully factored into the forecast for the next fiscal year)
  • Sluggish demand for derivative products due to the prolonged economic slowdown in China
  • Geopolitical risk and foreign exchange fluctuation risk

Last updated: July 10, 2026