Teijin plans to close its 290,000 tone/year paraxylene (PX) plant at Matsushima and end all production of PX in March 2014. The company announced that the move is because the PX business has become unprofitable due to the imbalance of its demand and supply because many chemical companies in the world have been building new PX plants. Its profitability is not expected to improve in the future.

As a result of the termination of PX production, the company plans to register an extraordinary loss of JPY 1 billion. The producer expects the termination will also lead to a reduction of JPY 1.3 billion in fixed expense annually.