Production capacity continues to expand as major MMA producers adjust their strategies

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The ongoing expansion of methyl methacrylate (MMA) production capacity in Asia is profoundly altering the global market landscape, forcing major producers to make strategic adjustments. According to S&P Global Commodity Insights, the global annual production capacity for MMA in 2024 is 6.4 million tons. It is expected to grow by 14% by 2029, reaching 7.3 million tons. In this period, Asia will see an increase in annual production capacity of over 900,000 tons, leading to significant changes in the market structure in other regions. 　　Mitsubishi Chemical, the world’s largest producer of MMA, stated in its strategic market analysis on April 23 that, driven by growth in applications for transparent resins and coatings, demand for MMA will keep pace with global GDP growth; however, the Asian market will still face an oversupply situation. The company has canceled the plan to build a new plant with an annual production capacity of 350,000 tons in Louisiana, USA, which is expected to result in losses of 20 billion yen. In addition, Mitsubishi Chemical has shut down its 107,000 tons per year MMA plant in Hiroshima, Japan, as well as its 220,000 tons per year facility in Castleford, UK, and will enhance its competitiveness by optimizing its global production network. 　　In March this year, Rom Group’s new MMA plant in Bay City, Texas, USA, came online. The plant uses its proprietary C2 route LiMA production technology, with an annual production capacity of 250,000 tons. The plant will primarily supply raw materials for the production of polymethyl methacrylate (PMMA) in the United States, replacing an old production facility in Louisiana with a capacity of 150,000 tons per year. Ron Ayres, managing partner at Advent International, the owner of Rom Private Equity, said there is still a shortage in the U.S. MMA market, and Rom is the only U.S. manufacturer of MMA based on C2 technology. They are evaluating opportunities for further business growth. According to Commodity Insights, by 2029, the total annual production capacity of MMA in the United States will reach 1 million tons. 　　In the oversupplied Asian market, capacity consolidation in MMA is an inevitable trend. Sumitomo Chemical Asia Ltd. shut down two production lines in Singapore last September, reducing its MMA and PMMA production capacity there by 80% and 70% respectively. 　　Another Japanese company, Kolari, also announced in July last year that it planned to consolidate its MMA plant located in Niigata, Japan. Korelia stated that by July 2025, it will reduce the plant’s current annual production capacity of 67,000 tons in half and cease selling products to external markets. 　　Thailand’s PTT Asahi Chemical Co., a joint venture between Japan’s Asahi Kasei and Thailand’s **Petrochemical Global Company Limited, ceased the production and sale of MMA and related products on December 31, 2024. The company plans to dismantle its production facilities by 2028. 　　Although some markets are showing signs of recovery, major producers generally believe that ensuring stable sales volumes and profit margins for general-purpose products in the medium to long term remains a challenge. The industry is responding to market changes through methods such as capacity optimization, technological upgrades, and application development, and the global MMA industry landscape will continue to be reshaped.