Asahi Kasei Decides to Gradually Halt Production of Hexamethylenediamine (HMD) to Focus on High-Value Business Growth

On December 5, 2025, Asahi Kasei Group of Japan announced that it would cease its hexamethylenediamine (HMD) production operations. This decision is an important measure in the group's ongoing efforts to optimize its product portfolio, with the core objective of further improving capital efficiency and enhancing overall profitability.

Hexamethylenediamine and its byproduct acrylonitrile are important basic raw materials in the chemical industry, widely used in the production of polyamide 66 (PA66), hexamethylene diisocyanate (HDI), and resin curing agents. Asahi Kasei indicated that the decision to exit hexamethylenediamine production is a strategic choice made after a comprehensive assessment of global market dynamics, product competitiveness, and future capital investment needs. It is understood that the related shutdown work will be carried out in phases, and is expected to be officially completed by April 2027.

It is worth noting that this business adjustment will strictly control the scope of impact. Asahi Kasei has clearly stated that the PA66 resin and fiber production lines located in Nobeoka City, Miyazaki Prefecture, as well as the HDI and its derivatives production business in Hyuga City, Miyazaki Prefecture, will not be affected and will continue normal operations. For the affected employees in the hexamethylenediamine production business, the group will properly arrange their placement through internal job reassignments. From a financial perspective, Asahi Kasei expects the impact of this shutdown on the group’s consolidated performance forecast to be very limited.

As a well-known comprehensive enterprise group in Japan, Asahi Kasei operates with its holding company, Asahi Kasei Corporation, and seven business companies at its core. Its business scope covers three major core areas: "Materials," "Housing," and "Health." Leveraging its core chemical technologies, the group has established solid technological barriers in fields such as textiles, chemicals, and electronic materials, and has strategically positioned its advantageous businesses globally. As the strategic hub of the group, the holding company is responsible for formulating overall development strategies, optimizing resource allocation, and monitoring business operations, while also focusing on promoting the integration of multiple business fields and cultivating new growth momentum.

Behind this product portfolio optimization is the solid growth of Asahi Kasei's business fundamentals in recent years. In the fiscal year 2024, the group delivered impressive performance: achieving sales of 30,373 billion yen and an operating profit of 211.9 billion yen, marking a historic high for operating profit in nearly six years. The core driver of this performance growth comes from the collaborative efforts of three major business segments, as well as the ongoing global demand for high value-added products.

Specifically, benefiting from the recovery of the global petrochemical industry and the strong demand in the semiconductor and electronic device markets, the "Materials" sector has become the core engine of the group's growth, with significant improvement in performance; the "Residential" and "Health" businesses have maintained a steady growth trend, providing stable support for the group's performance. In the fiscal year 2024, sales and operating profits in the three major business areas all achieved growth compared to the same period last year, with total profits increasing by 71.2 billion yen from the previous fiscal year. About half of the profit growth came from substantial improvements such as increased sales and enhanced profitability, while "key growth" businesses such as pharmaceuticals, intensive care, and digital solutions have also returned to a stable growth trajectory.

As the main driver of the group's performance growth, the materials sector achieved sales of 1,368.8 billion yen and operating profit of 87.4 billion yen in the fiscal year 2024, showing a good trend of both revenue and profit growth. In the segmented businesses, the life innovation sector saw steady sales growth of its main products, especially electronic products such as AI server components, electronic materials for high-end smartphones, and electronic components for camera modules, which achieved robust growth due to strong market demand. The automotive-related business performed outstandingly, with significant sales increases in automotive audio DSPs and PVC synthetic leather for interior materials in the Chinese market. In the energy and infrastructure sector, the ion exchange membrane business, based on long-term technological accumulation, has extended into high-value areas through a "one-stop solution" model, achieving stable profit growth.

From business adjustment to performance growth, Asahi Kasei is focusing on its core advantages and optimizing resource allocation to continuously build competitiveness in high value-added fields. The exit from the production of hexamethylenediamine will undoubtedly further concentrate the group's capital and technological strength, injecting new momentum into the in-depth development of its three core areas.