Company outlines Mizushima Works restructuring and portfolio optimization measures under medium-term strategy

Asahi Kasei has announced plans to streamline operations at its Mizushima Works by fiscal 2030 as part of a broader effort to optimize its Material sector portfolio and improve capital efficiency. The company stated that there will be no immediate impact on the supply of derivative products.

The company stated that there will be no immediate effect on the supply of its derivative products. The operations included in the initiative generated revenue of ¥116.2 billion in fiscal year 2025, while the overall Material segment recorded ¥1,306.2 billion during the same period.

Planned for completion by fiscal 2030, the measures are aligned with the previously announced halt of ethylene production at Asahi Kasei Mitsubishi Chemical Ethylene Corp. (AMEC), as part of the company’s efforts to improve capital efficiency and support long-term profitability.

Asahi Kasei stated that the planned discontinuation of these derivative businesses and the restructuring of its supply chain are part of a wider effort to optimize its Material sector portfolio and improve capital efficiency.

The company said the measures are aimed at exiting businesses where profitability has become increasingly difficult while reorganizing related supply chains within global petrochemical markets. According to Asahi Kasei, the initiative is expected to improve margins and reduce cash outflows associated with maintaining these operations, allowing capital to be redirected toward higher-value business areas with stronger long-term return potential.

Under its three-year medium-term management plan, “Trailblaze Together,” Asahi Kasei is focusing on improving capital efficiency and increasing earnings by converting previous growth investments into returns. As part of this approach, the company is carrying out structural reforms to allocate resources toward pharmaceuticals, critical care, overseas homes, and electronics.

Recent initiatives include entering a basic agreement with Mitsui Chemicals and Mitsubishi Chemical to support the decarbonization of ethylene production in western Japan, as well as the acquisition of Aicuris to strengthen its specialty pharmaceutical business focused on severe infectious diseases.