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

Rhea-AI Impact

(Low)

Rhea-AI Sentiment

(Neutral)

Tags

12/05/2025 - 08:00 AM

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/.