Daicel Delays New COC Resin Plant as EU Packaging Shift Slows Demand

The latest update is out from Daicel ( (JP:4202) ).

Daicel has revised its business plan for its cyclic olefin copolymer (COC) business and decided to postpone the start of operations at a new COC resin plant in Germany, following slower-than-expected demand growth and sharply higher construction and labor costs. The company had planned the second plant to support a projected rise in eco-friendly packaging demand in Europe around 2025, but implementation of EU Packaging and Packaging Waste Regulation has shifted the market’s transition timeline toward 2030, dampening near-term demand and raising profitability risks. As a result, the start-up of the new plant has been pushed back from April 2026 to the fourth quarter of the fiscal year ending March 2027, while Daicel reassesses demand trends and supply-demand balance; it is also reviewing the impact on its current business plan and FY2026 consolidated results, with COC resin sales currently around ¥15 billion and revised volume forecasts now showing a year-on-year decline for FY2026 before growth resumes in FY2027.

The most recent analyst rating on (JP:4202) stock is a Hold with a Yen1620.00 price target. To see the full list of analyst forecasts on Daicel stock, see the JP:4202 Stock Forecast page.

More about Daicel

Daicel Corporation is a diversified chemical manufacturer listed on the Prime Market of the Tokyo Stock Exchange, with operations that include high-performance polymers such as cyclic olefin copolymer (COC). Through its German subsidiary, TOPAS Advanced Polymers GmbH, Daicel supplies COC resin used in packaging and healthcare applications, with a particular focus on environmentally friendly packaging markets in Europe.

Average Trading Volume: 952,296

Technical Sentiment Signal: Buy

Current Market Cap: Yen406B

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