TOKYO, Nov 09, 2007 (Thomson Financial via COMTEX) -- MUCCY | charts | news | PowerRating -- Japanese chemical producer Mitsubishi Chemical Corp will suspend operations at its new factory in China in order to further cut production of purified terephthalic acid (PTA), a main ingredient for the synthesis of polyester fibers, the Nikkei reported on Friday without citing sources.

PTA is currently in oversupply, putting downward pressure on prices even while the cost of making PTA is rising because of the upward trend in oil, the business daily said.

The Mitsubishi Chemical Holdings Corp subsidiary has already cut back on PTA production by nearly 20 percent of its annual capacity, it said.

The suspension of its new Chinese plant will bring the production cut-back to greater than 30 percent of capacity, the report said.

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