SEKISUI CHEMICAL CO., LTD. announces that it expects to record the extraordinary loss (impairment loss) described below for the first nine months of fiscal year 2025 (from April 1, 2025 to December 31, 2025).
Recording of extraordinary loss (impairment loss)
SEKISUI CHEMICAL's consolidated subsidiary SEKISUI BIO REFINERY CO., LTD., which was promoting the practical implementation and commercialization of technology utilizing microorganisms to convert combustible waste into ethanol (hereinafter, "BR ethanol technology"), has established practical implementation of BR ethanol technology at its plant in Kuji City, Iwate Prefecture. However, commercialization has been postponed for the time being, and we have decided to dismantle and liquidate the plant. In connection with this, the following extraordinary loss is expected to be recorded in both the non-consolidated and consolidated financial statements.
【Non-consolidated】
Loss on valuation of shares of subsidiaries and associates 9,358 millions of yen Provision of allowance for doubtful accounts 11,228 millions of yen
Total 20,586 millions of yen
【Consolidated】
Impairment loss 14,829 millions of yen
(The loss incurred in the non-consolidated entity described above will be offset and eliminated in the consolidated financial statements)
Practical implementation and commercialization
Regarding the practical implementation, we were able to confirm that ethanol can be continuously produced using the BR ethanol technology, while also identifying technical challenges leading to further cost reductions. However, we have determined that it will take a while longer for the market to accept prices that incorporate resource recycling value (resource recycling costs) on top of the current market price for first-generation bioethanol. Therefore, we decided to postpone commercialization for the time being.
Going forward, we will resolve the technical challenges we identified and pursue further cost reductions.
At the same time, we will apply the knowledge and results gained from the BR ethanol technology to the development of other new technologies.
Please note that no revisions will be made to the full-year results forecast for fiscal 2025 announced on October 30, 2025.
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Sekisui Chemical Co. Ltd. published this content on December 11, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on December 11, 2025 at 06:32 UTC.
Sekisui Chemical Co., Ltd. is a company that operates in four business segments .The Housing segment is engaged in the manufacture, construction, sale and renovation of unit housing, the sale of land for subdivision, the provision of reform services, as well as the construction and sale of interior items, exterior items and real estate. The Environment and Life Line segment offers vinyl chloride pipe and fittings, polyethylene pipe and fittings, system pipe, aqueduct/water conduit rehabilitation materials, reinforced plastic composite pipes, and building materials, among others. The High-performance Plastics segment offers intermediate films for laminated glass, foamed polyolefin, tapes, particulate for liquid crystal and sensitive materials and test drug, among others. The Others segment is engaged in the manufacture and sale of film type lithium ion battery, as well as the provision of other products and services.
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