Asahi Kasei Strengthens Long-Term Profitability By Phasing Out Hmd Production As Part Of Structural Reform

Asahi Kasei Strengthens Long-Term Profitability By Phasing Out Hmd Production As Part Of Structural Reform

Asahi Kasei will discontinue production of hexamethylene diamine (HMD) as part of its ongoing portfolio optimization, aiming to enhance capital efficiency and strengthen the company’s earnings profile. HMD and its by-product, propionitrile, are used in materials such as polyamide 66 (PA66), hexamethylene diisocyanate (HDI), and resin hardening agents. Based on an assessment of market dynamics, competitiveness, and future capital requirements, Asahi Kasei has decided to exit HMD production. The phase-out will be completed by April 2027.

This discontinuation will not affect the production of Asahi Kasei’s PA66 resin and filament in Nobeoka, nor the production of HDI and its derivatives in Hyuga—both located in Miyazaki Prefecture. All affected employees will be reassigned to other roles within the company. The impact on Asahi Kasei’s consolidated performance forecast is expected to be immaterial. Under its three-year medium-term management plan “Trailblaze Together“, Asahi Kasei is improving capital efficiency and accelerating earnings by converting past growth investments into tangible returns. To support this, the company is implementing structural reforms that channel resources to its key growth pillars—pharmaceuticals, critical care, overseas homes, and electronics.

Recent actions that reinforce Asahi Kasei’s portfolio optimization include the divestiture of Daramic, a lead-battery separator company, and expanding capacity for Pimel photosensitive polyimide. These demonstrate the company’s disciplined execution of this strategy and reinforce the foundation for sustained, profitable growth.

www.asahi-kasei.com

#Asahi Kasei#pinterest #GenZGrowth  #DigitalGrowth #InvestorUpdate 
#printpublication #printmagazine #modernbusinessindia