Asahi Kasei to exit key chemical businesses, record €150m loss

Tokyo – Asahi Kasei Corp. has announced plans to discontinue its methyl methacrylate (MMA), cyclohexyl methacrylate (CHMA), PMMA resin, and styrene-butadiene (SB) latex businesses over the next few years.

The decision is part of a mid-term plan to “improve capital efficiency through structural transformation” unveiled 27 May.

As part of the move, the Japanese group is also planning to shut down acetonitrile refining at its Kawasaki Works and restructure supply via its Korean subsidiary.

Asahi Kasei expects the process to result in a Yen25 billion (€150 million) extraordinary loss for the fiscal year ending March 2026.

“These businesses have been in operation for over half a century,” said Asahi Kasei, adding that in recent years the economic conditions for these businesses have been "persistently unfavorable." 

Asahi Kasei linked the decline to the deterioration of the supply-demand balance as a result of large-scale expansion of petrochemical production capacity in China, as well as lower competitiveness due to high feedstock costs.

As a result, the operating rates of the plants have remained at low levels, it added.

The company concluded the situation was “structural and irreversible.”

As part of the process, Asahi Kasei will end the production of MMA and PMMA resins by September 2026, SB latex by September 2027, and CHMA by March 2026.

Sales of the products will be phased out through late 2027, the group added.

Furthermore, Asahi Kasei will supply acetonitrile to Japan from its Tongsuh Petrochemical facility in South Korea.

The affected operations generated Yen34.6 billion in revenue in FY2024. About 190 employees will be reassigned within the company.