Restructuring of Certain Downstream Product Businesses at the Mizushima Plant by Fiscal 2030
ASAHI KASEI CORPORATION (the Company's Mizushima Plant). Subsidiaries including 東西石油化学株式会社 and 旭化成精細化工（南通）有限公司 are identified as destinations for changes to the supply structure.
Mizushima Plant. Styrene monomer; high-pressure-process low-density polyethylene (LDPE), "SuntecTM-LD" and "SuntecTM-EVA"; low-pressure-process high-density polyethylene (HDPE), "SuntecTM-HD" and "CreolexTM"; acrylonitrile (AN); and polycarbonate diol (PCD), "DuranolTM".
The long-term contraction in domestic demand accompanying Japan's declining population, declining competitiveness in East Asia, persistently low operating rates for the product groups concerned, and the need to address carbon neutrality.
The impact on consolidated earnings forecasts for the current fiscal year ending March 2027 is minor. Costs associated with removing facilities and other expenses are scheduled to be recorded from fiscal 2030 onward, depending on future progress.
The impact of this resolution on consolidated earnings forecasts for the current fiscal year ending March 2027 is minor. No revised earnings forecast figures are provided.
Company response
By fiscal 2030, production of styrene monomer, LDPE and HDPE will end. For acrylonitrile, the annual 200,000-ton production line at the Mizushima Plant will be shut down, and the production structure will change to the joint production of AN and MAN on an annual 50,000-ton line. Production equivalent to 3,000 tons annually of PCD at the Mizushima Plant will also end.
For approximately 4 years until production ends, stable supply to customers will be prioritized. The supply structure for AN will change to one involving 東西石油化学株式会社 in South Korea, while PCD will be produced at facilities including 旭化成精細化工（南通）有限公司 in China. The 251 employees in the businesses concerned will be reassigned within the Company, and the facilities will be removed promptly after production ends. The Company will also promote the commercialization of its "Revolefin™" technology for producing green basic chemicals using bioethanol as a raw material.
| Item | Details |
|---|---|
| Event name | Restructuring of Certain Downstream Product Businesses at the Mizushima Plant by Fiscal 2030 |
| Date of occurrence | 12 May 2026 (the date on which the Company's Board of Directors resolved the restructuring policy) |
| Subject Entity | ASAHI KASEI CORPORATION (the Company's Mizushima Plant). Subsidiaries including 東西石油化学株式会社 and 旭化成精細化工（南通）有限公司 are identified as destinations for changes to the supply structure. |
| Target Locations / Products | Mizushima Plant. Styrene monomer; high-pressure-process low-density polyethylene (LDPE), "SuntecTM-LD" and "SuntecTM-EVA"; low-pressure-process high-density polyethylene (HDPE), "SuntecTM-HD" and "CreolexTM"; acrylonitrile (AN); and polycarbonate diol (PCD), "DuranolTM". |
| Cause | The long-term contraction in domestic demand accompanying Japan's declining population, declining competitiveness in East Asia, persistently low operating rates for the product groups concerned, and the need to address carbon neutrality. |
| Accounting period in which recognized | The impact on consolidated earnings forecasts for the current fiscal year ending March 2027 is minor. Costs associated with removing facilities and other expenses are scheduled to be recorded from fiscal 2030 onward, depending on future progress. |
| Impact on Earnings Forecast | The impact of this resolution on consolidated earnings forecasts for the current fiscal year ending March 2027 is minor. No revised earnings forecast figures are provided. |
| Suspended operations | By fiscal 2030, production of styrene monomer, LDPE and HDPE will end. For acrylonitrile, the annual 200,000-ton production line at the Mizushima Plant will be shut down, and the production structure will change to the joint production of AN and MAN on an annual 50,000-ton line. Production equivalent to 3,000 tons annually of PCD at the Mizushima Plant will also end. |
| Outlook | For approximately 4 years until production ends, stable supply to customers will be prioritized. The supply structure for AN will change to one involving 東西石油化学株式会社 in South Korea, while PCD will be produced at facilities including 旭化成精細化工（南通）有限公司 in China. The 251 employees in the businesses concerned will be reassigned within the Company, and the facilities will be removed promptly after production ends. The Company will also promote the commercialization of its "Revolefin™" technology for producing green basic chemicals using bioethanol as a raw material. |
Items this document does not state (16)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The company determined that the long-term contraction in demand due to Japan's declining population, declining competitiveness in East Asia and low operating rates for the product groups concerned were structural and irreversible. It also cited its policy of optimizing its global supply structure, strengthening the petrochemical industry and addressing carbon neutrality.