The company plans to stop manufacturing of numerous petrochemical derivatives at its Mizushima Works facility in Japan as part of a wider restructuring within its Materials segment.
Asahi Kasei, a diversified chemical and materials company located in Tokyo, declared plans to stop manufacturing of numerous petrochemical derivatives at its Mizushima Works facility in Japan by economic 2030 as a part of a wider portfolio restructuring within its Materials segment.
As per the company, the initiative includes styrene monomer, low-density and high-density polyethylene, acrylonitrile and polycarbonate diol. Manufacturing of styrene monomer and polyethylene grades will be discontinued. For acrylonitrile, Asahi Kasei stated it will close its 200,000-ton-per-year Mizushima manufacturing line while transferring a 50,000-ton-per-year methacrylonitrile line to acrylonitrile and methacrylonitrile co-manufacturing, with persisted acrylonitrile supply by its Tongsuh Petrochemical affiliate in South Korea. Polycarbonate diol Manufacturing at Mizushima will also be stop, with supply maintained by Asahi Kasei Performance Chemicals in China.
The company stated the measures align with a formerly declared cessation of ethylene manufacturing at Asahi Kasei Mitsubishi Chemical Ethylene Corp. and are meant to exit businesses where profitability has emerge as structurally challenging. As per the Asahi Kasei, the restructuring is anticipated to enhance margins and decrease cash outflows, permitting capital reallocation toward higher-value businesses such as pharmaceuticals, crucial care and electronics.
The company stated there will be no instant impact on supply of derivative products throughout the transition period.
