Asahi Kasei will discontinue its production of hexamethylene diamine (HMD) as part of a broader structural reform. The decision aims to improve long-term profitability and strengthen capital efficiency. HMD and its by-product, propionitrile, are used to produce materials such as PA66, HDI, and resin hardening agents. After reviewing market trends, competitiveness, and future investment needs, the company chose to exit HMD production. The phase-out will conclude by April 2027.
No Impact on PA66, Filament, or HDI Production
This decision will not affect Asahi Kasei’s production of PA66 resin and filament in Nobeoka. Additionally, HDI and derivative production in Hyuga will continue without disruption. Both sites are located in Miyazaki Prefecture. Furthermore, all affected employees will be reassigned within the company. The impact on the company’s consolidated performance forecast is expected to be minimal.
Part of the “Trailblaze Together” Management Plan
Under its three-year medium-term management plan, “Trailblaze Together,” Asahi Kasei is prioritizing capital efficiency and accelerating earnings growth. Therefore, the company is converting past investments into stronger financial returns. As part of this shift, resources are being redirected toward core growth areas. These include pharmaceuticals, critical care, overseas homes, and electronics.
Ongoing Portfolio Optimization Efforts
The company has also taken several steps to streamline its portfolio. Recently, it divested Daramic, a lead-battery separator manufacturer. It also expanded production of Pimel photosensitive polyimide. Together, these actions demonstrate disciplined execution of its strategy. They also reinforce the foundation for sustained and profitable long-term growth.
