On March 31, 2026, Mitsubishi Gas Chemical Company, Inc. (MGC) announced that the company has resolved at the board meeting held on the same day to cease the operation of its polycarbonate (PC) production facility at the Kashima Plant in Japan. The facility is scheduled to stop production in March 2028.

The polycarbonate business of Mitsubishi Gas Chemical Company, Inc. (MGC) has long faced challenges in profitability and capital efficiency due to sluggish prices caused by market oversupply. Therefore, this business has been listed as a key restructuring area under the current Medium-Term Management Plan (MTMP 2026), and structural reforms have been promoted accordingly. The company has conducted various studies to improve the profitability of its production bases. However, the PC facility at the Kashima Plant has maintained a low-profit status for a long time, and no profit improvement is expected in the future. Based on the above factors, the company decides to shut down production operations at the plant in March 2028. After the shutdown of this facility, the domestic PC business in Japan will be supported by product supplies from the Group's overseas production bases. In addition, the company will continue to advance structural reforms of the business by further optimizing production capacity and transforming into high-value-added products.

For the current employees working at the plant, the company will give priority to retaining their positions and make corresponding arrangements.

Facility Name: Polycarbonate Production Facility (located in Kashima Plant) Production Capacity: 120,000 tons per annum Scheduled Shutdown Date: March 2028

Note: The optical resin polymer "Iupizeta™ EP", sold by the Optical Materials Division of Mitsubishi Gas Chemical Company, Inc. (MGC), is not included in the scope of this production suspension.