Days numbered for Asahi Kasei Cord

Asahi Kasei has decided to discontinue its Asahi Kasei Cord Co., Ltd. business and liquidate the company. Around 70 people currently work for the Hyuga, Japan-based operation, where production is scheduled to cease by or on 31 March 2024. The plant will close a year later.

Asahi Kasei Cord was established in 1970 as a manufacturer of nylon yarn for tyre cord and has played an important role as a manufacturing and supply base for Asahi Kasei’s nylon filament business. However, Asahi Kasei notes that the market environment for tyre cord in Japan has become “increasingly difficult” due to the “sluggish growth” of automobile production as well as increased imports of products from other countries. In addition, the recent sharp rise in raw material and fuel prices has led to increased costs, resulting in a “significant deterioration” in earnings.

As part of its ongoing business portfolio transformation and in order to improve profitability, Asahi Kasei has decided to shift its nylon filament management resources from general-purpose tyre cord applications to airbag and specialty tyre cord applications, where further growth is expected.

Asahi Kasei states that the impact on its consolidated financial results is immaterial, and it will avoid impact upon the supply chain through consultation with customers. The company intends to reassign Asahi Kasei Cord employees to its other businesses.