Tosoh to Reduce Caustic Soda Output as Costs Rise, Nikkei Says

By Keiko Ujikane

Aug. 31 (Bloomberg) -- Tosoh Corp., a Japanese petrochemical maker, will cut production of caustic soda for the first time in 10 years to reduce costs, the Nikkei newspaper reported, without saying where it got the information.

The company will reduce output of the chemical, also known as sodium hydroxide and used as a base in manufacturing, from September, the newspaper said. Tosoh will cut its domestic production 15 percent from 1.37 million ton a year, Nikkei said.

The output reduction will help profits eroded by rising raw- material costs and declining shipments of by-products to China, the report said.

To contact the reporter on this story: Keiko Ujikane in Tokyo at kujikane@bloomberg.net