TOKYO—Mitsui Chemicals Inc. will close multiple plants in a restructuring of its polyurethanes business.
The firm said it plans to focus on coating engineering materials in polyurethane through specialty isocyanates, which account for 36 percent of its $1.65 billion sales in that sector.
President and CEO Toshikazu Tanaka said the restructuring is an attempt to stem losses and return to profitability.
Mitsui's polyurethane business saw a loss of around $39 million in 2013, which was an increase from losses of $25.3 million in 2012.
The firm's sales grew in 2013 to $15.3 billion, up from $13.7 billion in 2012. However, the firm's operating loss grew from $41.9 million in 2012 to $243.6 million in 2013. Tanaka said the firm took a $311.8 million charge in 2013 to pay for restructuring.
"With unwavering determination, we will initiate the measures and tactics full force to assure realization of a v-shaped turnaround," Tanaka said.
Tanaka also promised to cut director salaries by 12-20 percent and bonuses too.