Asahi Kasei, a diversified global company, has announced a sweeping plan to streamline operations at its Mizushima Works by fiscal 2030 as it sharpens focus on capital efficiency and long-term profitability.

 

The company emphasized there will be no immediate impact on the supply of derivative products. The businesses included in the restructuring generated ¥116.2 billion in fiscal 2025, compared with ¥1,306.2 billion for the broader Material segment. 

 

The measures align with the previously announced cessation of ethylene production at Asahi Kasei Mitsubishi Chemical Ethylene Corp. (AMEC), reinforcing the company’s push to exit lower-return areas and reallocate capital toward higher-value growth.

 

The plan includes discontinuation or realignment across multiple petrochemical and derivative lines:

 

Styrene monomer: Resin feedstock use to be discontinued

 

Suntec-LD and Suntec-EVA (LDPE): Used in films, packaging materials, and sundry goods

 

Acrylonitrile (AN): Mizushima 200 kt/y AN line to be discontinued; 50 kt/y MAN line to be converted to AN/MAN co-production, with continued AN supply maintained via Tongsuh Petrochemical in South Korea

 

Duranol polycarbonate diol (PCD): Mizushima ~3 kt/y line to be discontinued, with supply maintained through Asahi Kasei Performance Chemicals in China and other partners

 

Asahi Kasei said the changes are part of a broader effort to streamline its Materials portfolio, exit structurally low-profit businesses, and optimize global supply chains. The company expects the move to improve margins, reduce cash outflows tied to legacy operations, and enable reinvestment into higher-value opportunities.

 

The restructuring is a key pillar of its three-year medium-term management plan, “Trailblaze Together,” which focuses on converting past investments into earnings growth and improving capital efficiency.

 

The company is concentrating resources on core growth areas including pharmaceuticals, critical care, overseas homes, and electronics. 

 

Recent strategic moves—such as a basic agreement with Mitsui Chemicals and Mitsubishi Chemical to advance ethylene decarbonization in western Japan, and the acquisition of Aicuris to strengthen its specialty pharma portfolio in severe infectious diseases—underscore its shift toward higher-margin, innovation-led businesses.

 

Overall, the Mizushima overhaul marks a decisive step in Asahi Kasei’s effort to reshape its industrial base for a leaner, more profitable long-term structure.