Asahi Kasei: Joint Venture with Teijin

Asahi Kasei and Teijin announced the merger of Asahi Kasei Advance, a wholly owned subsidiary of Asahi Kasei, and Teijin Frontier, a wholly owned subsidiary of Teijin, into a new company. Teijin Frontier will function as the acquiring company. The joint venture between Asahi Kasei (20%) and Teijin (80%) is scheduled to take effect on October 1, 2026.

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Asahi Kasei Advance was established in 2015 as a trading company that primarily distributes products of the Asahi Kasei Group, such as fibers, chemical products, and building materials, globally. The merger with Teijin Frontier was decided in order to realize further sustainable growth. Teijin Frontier is a trading company with a strong global network regarding the procurement and production of high-performance fibers. In the announced merger, the sales channels and product portfolios of Teijin Frontier and Asahi Kasei Advance will be combined. The strengths of both companies are to be utilized to form a corporate group with greater competitiveness and a solid foundation for growth. Hangzhou Asahikasei Textiles Co., Ltd., a subsidiary of Asahi Kasei (China) Co., Ltd. that manufactures and sells textile products, will be transferred to Asahi Kasei Advance prior to the integration.

According to the information, the impact of the integration on Asahi Kasei's consolidated results is negligible.

Transformation of the Business Portfolio
As part of its three-year medium-term management plan “Trailblaze Together,” Asahi Kasei aims to focus on improving capital efficiency. To this end, the company is currently carrying out comprehensive structural reforms in the materials sector and concentrating resources on the key growth areas – pharmaceuticals, critical care, electronic components, and materials for the semiconductor industry. Recent measures in this direction include exiting the methyl methacrylate (MMA) monomer business and expanding capacity for photosensitive polyimides.

More information: www.asahi-kasei.com, www.teijin.com

Asahi Kasei Corporation, Tokio, Japan

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