Mitsui to exit toner binder market
September 24, 2024
Mitsui Chemicals will exit the toner binder resin business by 2025, citing profitability concerns.
Mitsui Chemicals Inc. (Tokyo: 4183) has announced plans to withdraw from the toner binder resin business by the first half of fiscal 2025. This decision affects their production of styrene–acrylic and polyester resins, marketed under the ALMATEX and ALMASTAR brands.
The move follows years of financial strain due to fierce price competition, escalating raw material costs, and decreased demand for printing as work styles shifted during the pandemic. Despite efforts to rationalise operations, Mitsui determined that sustaining profitability in the segment was no longer feasible.
The withdrawal aligns with the company’s Vision 2030 Long-Term Business Plan, which emphasises transforming its portfolio to focus on sustainable and high-growth chemical sectors. Mitsui aims to reposition itself as a global leader in specialty chemicals and green innovations.
While Mitsui aims to minimise disruption for stakeholders, it reassures that the financial impact of this exit will be minor, with no significant changes to its earnings forecast.
Our take on this: This decision will undoubtedly be a blow to toner producers relying on Mitsui’s resins, potentially forcing them to seek alternative suppliers. The reduced competition in the toner binder market is expected to result in price increases from the remaining resin producers, further tightening margins for downstream players in the printing and imaging sectors.
Categories : World Focus
Tags : Chemicals Mitsui Profitability Resin Toner
