Sekisui Chemical (TYO:4204) expects to book an extraordinary loss after deciding to dismantle and liquidate a plant in Kuji, Iwate, where its subsidiary Sekisui Bio Refinery had been working to commercialize technology that converts combustible waste into ethanol, according to a Thursday filing on the Tokyo Stock Exchange.

The company said commercialization of the BR ethanol process has been put on hold, even though continuous production was confirmed. It cited technical challenges and limited market acceptance of pricing that reflects resource-recycling costs.

Sekisui Chemical plans to record a non-consolidated loss of 20.6 billion yen, including a valuation loss on shares of subsidiaries and an allowance for doubtful accounts. On a consolidated basis, it expects an impairment loss of 14.8 billion yen.