Asahi Kasei Exits Polyethylene Business

Japan's Asahi Kasei will cease production of polyethylene resins by March 2030. Currently, the company manufactures low-density polyethylene (LDPE), ethylene vinyl acetate (EVA) and high-density polyethylene (HDPE) under the Suntec-LD and Suntec-EVA, and Suntec-HD and Creolex brands.

Creolex HDPE is produced using metallocene catalyst technology. Creolex metallocene HDPE grades exhibit excellent thermal stability and are additive-free in certain formulations. The materials come in various grades such as T401AL and T4125. The primary applications for Creolex include hot-water pipes, films, miscellaneous goods, food containers, and delivery crates. The material is particularly valued in situations requiring high thermal stability and odor-free properties, such as food-contact applications and laminate materials.

These measures, targeted for completion by fiscal 2030, align with the previously announced cessation of ethylene production at Asahi Kasei Mitsubishi Chemical Ethylene Corp. (AMEC), further advancing the company’s efforts to enhance capital efficiency and strengthen long-term profitability.

Also on the chopping block are styrene monomer (SM), acrylonitrile (AN) and polycarbonate diol (PCD). Asahi Kasei will shut down a 200,000-tonnes/year capacity line at Mizushima at convert a 50,000-tonnes/year ) line to AN/ methacrylonitrile (MAN) coproduction with continued AN supply through Tongsuh Petrochemical (South Korea).

Image: Asahi Kasei

Duranol PCD is a polyurethane feedstock for synthetic leather applications. The company will cease operations at a 3,000-tonnes/year PCD line in Mizushima while ensuring continued supply through subsidiary Asahi Kasei Performance Chemicals (China).

Under its three-year medium-term management plan Trailblaze Together, Asahi Kasei is improving capital efficiency and accelerating earnings by converting past growth investments into tangible returns. To support this, the company is implementing structural reforms that channel resources to its key growth pillars—pharmaceuticals, critical care, overseas homes, and electronics.

Recent actions such as entering a basic agreement with Mitsui Chemicals and Mitsubishi Chemical to promote the decarbonization of ethylene production in western Japan, and acquiring Aicuris to strengthen its specialty pharma platform in severe infectious diseases, demonstrate Asahi Kasei’s dis- ciplined execution of this strategy and reinforce the foundation for sustained, profitable growth.