Reconstruction of Part of the Water Island Plant’s Derivative Product Business by FY2030

Background and Purpose of Restructuring of Part of the Water Island Plant's Derivative Product Business

Japan’s petrochemical industry is a vital sector supporting social infrastructure, but long-term sluggishness in operations persists due to domestic population decline reducing demand and decreasing competitiveness in the East Asian region. Asahi Kasei is advancing integration and consolidation of lagging operations across the industry, aiming to strengthen future supply capacity. For the chemical business, the focus is on improving operating rates, maintaining supply responsibility, and promoting carbon neutrality to establish a robust business structure.

Details of the Restructuring and Future Policy

By FY2030, the production of styrene monomer, LDPE, and HDPE at the Water Island Plant will be discontinued, though sales will continue. The production scales of acrylonitrile and polycarbonate diol will be reduced and partially halted, with overseas production continuing. A transition period of approximately four years to alternative products will be set across the entire supply chain, prioritizing stable supply. This will keep domestic production capacity well above domestic demand, including other companies, thereby contributing to strengthening the resilience of the petrochemical supply chain.

Establishment of a Joint Venture for Western Japan Ethylene Production Facilities

In January 2026, we announced plans to establish a joint venture with Mitsui Chemicals (45%), Mitsubishi Chemical (45%), and Asahi Kasei (10%) to optimize and greenify ethylene manufacturing facilities in Western Japan, integrating ethylene production assets. This aims to enhance competitiveness in the basic chemical business and build a sustainable business foundation.

Direction and Mid- to Long-term Goals for the Chemical Business

We aim to establish a global business structure that delivers value beyond 2030, focusing on raw material conversion, green solutions, and high-profitability, capital-efficient business models. We will promote the development and manufacturing of environmentally friendly products, including utilizing Revolefin™, a key technology for restructuring petrochemicals using plant-derived ethanol.