Asahi Kasei to Shut Down Multiple Chemical Operations as Part of Strategic Business Optimization

Tokyo, December 5 – Asahi Kasei, one of Japan’s leading diversified chemical manufacturers, has announced that it will discontinue production of hexamethylenediamine (HMD) as part of its broad structural reform and business optimization strategy. The move is designed to improve capital efficiency, enhance long-term profitability, and redirect resources toward the company’s priority growth sectors.

HMD serves as a critical feedstock for nylon 66, hexamethylene diisocyanate (HDI), and a variety of resin curing agents. According to Asahi Kasei, the decision to exit the HMD business follows a comprehensive review of market demand, competitiveness, cost position, and expected future investment requirements across the nylon 66 value chain.

The company plans to complete the shutdown by April 2027. Asahi Kasei emphasized that the withdrawal will not impact the operations of its PA66 resin and fiber facilities in Nobeoka, Miyazaki, nor its HDI and derivatives production sites in Hyuga, Japan. All employees affected by the closure will be reassigned within the organization, avoiding job losses.

The restructuring aligns with Asahi Kasei’s Medium-term Management Plan 2027, which focuses on improving capital productivity, boosting returns on investment, and concentrating business resources on higher-growth fields such as pharmaceuticals, critical care, housing, and electronics materials.

Throughout 2025, Asahi Kasei has introduced several structural reforms across its chemicals portfolio, including exiting the MMA monomer, CHMA, acrylic resin, and SB latex businesses; reorganizing its acetonitrile supply chain with the closure of the Kawasaki refining plant; divesting its lead-acid battery separator subsidiary Daramic; and expanding production capacity for Pimel photosensitive polyimide, a key material for semiconductor applications.

These actions collectively demonstrate Asahi Kasei’s strategic shift toward higher-value, innovation-driven sectors while streamlining non-core businesses to strengthen long-term competitiveness.