Asahi Kasei has announced plans to streamline operations at its Mizushima Works by fiscal 2030 as part of its strategy to improve capital efficiency and strengthen long-term profitability.
The company stated that the planned restructuring will align with the previously announced cessation of ethylene production at Asahi Kasei Mitsubishi Chemical Ethylene Corp. (AMEC). The businesses covered under this initiative generated revenue of ¥116.2 billion in fiscal year 2025, compared to ¥1,306.2 billion for Asahi Kasei’s overall Material segment.
As part of the optimisation plan, the company will discontinue production of several derivative products and restructure parts of its supply chain network by FY2030. Products impacted include styrene monomer, Suntec™-LD and Suntec™-EVA low-density polyethylene (LDPE), Suntec™-HD and Creolex™ high-density polyethylene (HDPE), selected acrylonitrile (AN) production lines, and Duranol™ polycarbonate diol (PCD).
For acrylonitrile, Asahi Kasei will discontinue its 200 kt/y AN line at Mizushima and convert its 50 kt/y methacrylonitrile (MAN) line into an AN/MAN co-production facility. The company confirmed that AN supply will continue through Tongsuh Petrochemical in South Korea.
The company will also discontinue the approximately 3 kt/y PCD production line at Mizushima while maintaining supply through Asahi Kasei Performance Chemicals in China and other facilities.
According to Asahi Kasei, the restructuring initiative is aimed at exiting businesses where profitability has become increasingly difficult while improving operational efficiency within global petrochemical supply chains. The company expects these measures to improve margins, reduce operational cash outflows, and allow capital to be redirected toward higher-value growth opportunities.
The move forms part of Asahi Kasei’s three-year medium-term management plan, “Trailblaze Together,” which focuses on improving capital efficiency and accelerating earnings growth by shifting resources toward core strategic sectors, including pharmaceuticals, critical care, overseas housing, and electronics.
The company also highlighted recent strategic initiatives supporting this direction, including its agreement with Mitsui Chemicals and Mitsubishi Chemical to advance decarbonisation of ethylene production in western Japan, as well as the acquisition of Aicuris to strengthen its specialty pharmaceutical business focused on severe infectious diseases.
Through these measures, Asahi Kasei aims to reinforce sustainable and profitable long-term growth while enhancing the competitiveness of its global operations.
