Mitsubishi Chemical Corporation (MCC ) announced that it will not start operations in its newly established polycarbonate resin production facility.

The reasons behind the company's decision include the surge in feedstock and energy costs caused by raising crude oil price and the continuously depressed polycarbonate resin market. All these facts have severely affected the profitability of the polycarbonate business.
BR> MCC constructed a new polycarbonate resin production facility within its Kurosaki Plant in March 2008, and has been preparing for commercial operation after having made a trial operation. The facility was originally scheduled to start up this month.
BR> MCC said that it the facility may start operations in the future under certain circumstances, such as future feedstock prices, energy costs and polycarbonate market conditions.
BR> MCC is currently producing 20,000 tons of polycarbonate per year at its Kurosaki Plant. The new production facility would boost production at 60,000 tons per year.