Asahi Kasei to Phase Out HMD Production to Boost Long-Term Profitability

Asahi Kasei will discontinue HMD production by April 2027, reallocating resources to core growth areas and boosting long-term earnings.

Asahi Kasei has announced it will discontinue the production of hexamethylene diamine (HMD) as part of a strategic portfolio optimization, aiming to enhance capital efficiency and strengthen its earnings profile. HMD, along with its by-product propionitrile, serves as a key material in polyamide 66 (PA66), hexamethylene diisocyanate (HDI), and resin hardening agents. Following a detailed evaluation of market trends, competitive positioning, and future investment needs, the company decided to exit HMD production, with the phase-out scheduled for completion by April 2027.

The move will not affect the company’s ongoing production of PA66 resin and filament in Nobeoka or HDI and its derivatives in Hyuga, both in Miyazaki Prefecture. Employees impacted by the closure will be reassigned to other roles within Asahi Kasei. The company expects the discontinuation to have a minimal effect on its consolidated financial forecasts.

This decision aligns with Asahi Kasei’s three-year medium-term management plan, “Trailblaze Together”, which focuses on improving capital efficiency and accelerating profitability by converting previous growth investments into tangible returns. The plan channels resources toward the company’s strategic growth pillars: pharmaceuticals, critical care, overseas homes, and electronics.

Recent steps reflecting this portfolio discipline include the sale of Daramic, a lead-battery separator business, and the expansion of Pimel photosensitive polyimide production. These initiatives demonstrate Asahi Kasei’s commitment to a focused, sustainable growth strategy designed to reinforce long-term profitability.