Asahi Kasei Strengthens Long-Term Profitability by Phasing Out HMD Production as Part of Structural Reform

Key Terms

hexamethylene diamine technical

Hexamethylene diamine (HMDA) is a basic industrial chemical used as a building block to make nylon, coatings and other synthetic materials — imagine it as a Lego piece that joins molecules to form tougher plastics and fibers. It matters to investors because its price, supply disruptions, or safety and environmental regulations can directly affect costs, production capacity and liability risk for manufacturers in plastics, textiles and specialty chemicals industries.

propionitrile technical

Propionitrile is a small organic chemical (also called ethyl cyanide) used as a basic building block and solvent in making pharmaceuticals, agrochemicals and specialty chemicals. It matters to investors because it is flammable and toxic and is subject to safety and environmental rules; changes in its supply, price, or regulatory treatment can raise production costs, interrupt manufacturing or create liability risks—similar to how a shortage or safety issue with a key ingredient can disrupt a factory.

polyamide 66 technical

A durable, heat-resistant synthetic plastic (commonly called Nylon 66) used to make strong parts like gears, connectors and housings in cars, electronics and industrial equipment. Investors watch it because its demand and price reflect activity in manufacturing and supply chains—think of it as an industrial-grade plastic that acts like a lightweight metal in many applications; changes in its cost or availability can affect makers’ margins and capital spending plans.

hexamethylene diisocyanate technical

A reactive industrial chemical used to make tough, long-lasting coatings and paints, hexamethylene diisocyanate is a building-block ingredient that helps bind materials into durable polymer finishes. It matters to investors because it carries strict workplace and environmental controls—similar to an allergen in food—so regulatory limits, safety costs, liability risk, or supply changes can affect manufacturers, suppliers and companies that rely on coated products.

photosensitive polyimide technical

Photosensitive polyimide is a plastic-like film used in electronics manufacturing that hardens or dissolves when exposed to light, allowing precise patterns to be created much like stenciling with a photocopy. Investors care because it is a key material in making chips, sensors, and advanced packages; its use affects product performance, manufacturing speed, yield and cost, so changes in demand, supply or process improvements can influence a maker's profitability and competitive position.

TOKYO--(BUSINESS WIRE)-- 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.

Progress of Asahi Kasei's business portfolio transformation.

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.

About Asahi Kasei

The Asahi Kasei Group contributes to life and living for people around the world. Since its foundation in 1922 with ammonia and cellulose fiber business, Asahi Kasei has consistently grown through the proactive transformation of its business portfolio to meet the evolving needs of every age. With more than 50,000 employees worldwide, the company contributes to sustainable society by providing solutions to the world’s challenges through its three business sectors of Healthcare, Homes, and Material. For more information, visit www.asahi-kasei.com.

Asahi Kasei is also dedicated to sustainability initiatives and is contributing to reaching a carbon neutral society by 2050. To learn more, visit https://www.asahi-kasei.com/sustainability/.

View source version on businesswire.com: https://www.businesswire.com/news/home/20251205135334/en/

North America Contact:

Asahi Kasei America Inc.

Christian OKeefe

christian.okeefe@ak-america.com

Europe Contact:

Asahi Kasei Europe GmbH

Sebastian Schmidt

sebastian.schmidt@asahi-kasei.eu

Source: Asahi Kasei