Toda Kogyo, Inc. <4100> announced on the 31st that it will terminate the hydrotalcite manufacturing outsourcing contract with Sakai Chemical Industry Co., Ltd. <4078> in April 2025.

Both companies started a joint venture in the hydrotalcite business in 2017. It was determined that it would be difficult to continue the business while maintaining the current production capacity as it is amidst a significant decline in hydrotalcite demand that was initially anticipated with no signs of demand recovery.

After the termination of the joint venture, the company will reduce the production capacity of hydrotalcites and strive to continue the business. Additionally, it will deepen its synthetic technology cultivated in the hydrotalcite business and aim to expand into new fields.