-- Mitsubishi Chemical Group (TYO:4188) revised its UK SoarnoLTM plant investment plan after construction delays, complex contracts, and surging material and labor costs amid global inflation drove expenses far above initial projections.
The company now expects to record an impairment loss of approximately 30 billion yen for the fiscal year ended March 31, on SoarnoLTM-related fixed assets, including investment-related expenses incurred to date, according to a Tokyo bourse filing on Wednesday.
This anticipated loss was not factored into the consolidated earnings forecast released on Feb. 5, and the company stated that its full-year financial results, including the impact of the investment increase, are currently under review.
Despite the setback, Mitsubishi Chemical reaffirmed that SoarnoLTM remains a core growth driver for its chemicals business, with the new manufacturing facility now scheduled to begin operations in fiscal 2027.