Asahi Kasei Strengthens Long-Term Profitability by Phasing Out HMD Production as Part of Structural Reform
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Progress of
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
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
About Asahi Kasei
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/.
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North America Contact:
christian.okeefe@ak-america.com
Europe Contact:
sebastian.schmidt@asahi-kasei.eu
Source: Asahi Kasei