MGC has an existing 30,000-ton MXDA plant in Niigata, and is now aiming to develop a more stable supply and a stronger business foundation by increasing annual production capacity to a total of 50,000 tons at two locations.

Demand for MXDA has been growing in recent years, with key applications including use as a raw material for polyamide (nylon), urethane and as a curing agent for epoxy resins. Demand for MGC’s polyamide, Nylon-MXD6, holds particular promise for further growth in MXDA sales, as its strong gas barrier function is attracting wide support from the food and beverage industry for use in PET bottles, film or sheets for food wrapping, and related applications. Another factor influencing MGC’s decision to boost production is the steadily increasing demand for products such as specialty amines and high-performance resins.

MGC’s xylene business is centered on the production of metaxylene, paraxylene, orthoxylene and their derivative products, made through the process of separating and isomerizing mixed xylene.

The decision to boost MXDA production stems from the Company’s policy of strengthening and expanding its proprietary metaxylene (“m-Xylene”) and its derivatives operations as a core business. MGC is the world’s largest m-Xylene manufacture, and has already announced its plan to expand the annual m-Xylene capacity to 220,000 tons in the fall of 2009.