MOSCOW (MRC) -- Asahi Kasei has decided to discontinue the business of Asahi Kasei Cord Co., Ltd. and liquidate the company, said the company.
Asahi Kasei Cord was established in 1970 as a manufacturer of nylon yarn for tire cord (reinforcing fabric in tires) and has played an important role as a manufacturing and supply base for Asahi Kasei's nylon filament business. However, the market environment for tire 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, Asahi Kasei has decided to shift its nylon filament management resources from general-purpose tire cord applications to airbag and specialty tire cord applications, where further growth is expected, in order to improve profitability and achieve further growth.
The impact on Asahi Kasei's consolidated financial results is immaterial.
We remind, Asahi Kasei and Microwave Chemical launched a joint demonstration project in April 2023 with the objective of commercializing a chemical recycling process for polyamide 66 using microwave technology.