4 Product Lines 1 Shutdown Asahi Kasei’s Exit Marks Turning Point in Japanese Petrochemicals

On May 27, Asahi Kasei’s board of directors approved a sweeping restructuring plan, announcing its withdrawal from four petrochemical product lines—MMA monomer, CHMA, acrylic resins, and SB latex—due to persistent low profitability and oversupply issues driven by Chinese competition and surging input costs. In tandem, the company revealed it would shut down its Kawasaki Refining Plant and overhaul its acetonitrile supply framework, signaling a major shift in strategy.

The company attributed the exit to a combination of prolonged economic stagnation, rising feedstock prices, and an irreversible supply-demand imbalance caused by China’s rapid capacity expansion in the chemical sector. These factors have driven down plant utilization rates, making continued production unviable.

The timeline for the shutdowns is precise:

• MMA monomer: cease production and sales by September 2026

• CHMA: operations end in March 2026

• Acrylic resins: production stops by September 2026, sales end by September 2027

• SB latex: cease manufacturing by September 2027, with sales ending December 2027

These cuts are part of Asahi Kasei’s effort to optimize its business portfolio and focus resources on sectors with stronger long-term growth prospects. The closure of the Kawasaki site is intended to streamline operations and improve cost efficiency, amid industry-wide pressure to adapt to structural changes in the global chemical landscape.

This move underscores a broader trend: Japan’s chemical giants are accelerating exits from commoditized segments as Asian competitors, particularly from China, ramp up output at lower costs. For Asahi Kasei, once a key player in MMA and resin markets, this decision marks a pivotal retreat and a recalibration of its industrial ambitions.