ASAHI KASEI CORPORATION [3407.T]
TOKYO, May 12 (Pulse News Wire) – ASAHI KASEI CORPORATION (3407.T) announced today that its board of directors has approved plans to reconstruct part of its water island manufacturing facility's derivative products business by 2030. The decision follows a review aimed at improving supply chain resilience and aligning with carbon neutrality goals.
Specifically, the company will cease production of styrene monomer, low-density polyethylene (LDPE), and high-density polyethylene (HDPE) by 2030 due to low operational efficiency. Additionally, acrylonitrile production capacity will be reduced domestically while polycarbonate diol production will end entirely within Japan. A transition period of approximately four years is planned to minimize disruption to customers.
For the fiscal year ending March 2026, the affected businesses generated combined sales of ¥116.2 billion. The restructuring will impact 251 employees who will be reassigned internally. Regarding financial implications, the company expects minimal effects on its consolidated performance forecast for the fiscal year ending March 2027.
Removal costs associated with decommissioned equipment will be recognized in future periods post-2030.
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