Press Releases

Operating climate and background
The principal segment of Asahi Kasei acrylic fiber operations is Cashmilon™, which has confronted intensively challenging conditions with steadily declining domestic Japanese demand for acrylic staple and recurring swings in raw material costs and exchange rates, hampering its ability to obtain consistent profitability. A range of measures have been implemented to enhance the operational structure to the greatest possible degree. These include increasing focus on high-value specialty products, elimination of excess production capacity, and streamlining of sales functions. While improvements have been manifest, a level of performance which would warrant new investment remained elusive. It was thus determined that withdrawal could not be avoided.

Feedstock handling, spinning solution, and solvent recovery systems and equipment for Pewlon™ and Lastan™ are in large part shared with those for Cashmilon™. To continue Pewlon™ and Lastan™ operations after a cessation of Cashmilon™ production would require substantial additional investment for plant modification. As this was deemed impractical, Pewlon™ and Lastan™ operations will be withdrawn in conjunction with Cashmilon™.

Schedule and course of transition
Conclusion of production is scheduled for the end of March 2003, with sales scheduled to be completed by the end of June 2003. To enable this schedule to be implemented as smoothly as possible, Asahi Kasei will work in close coordination with its customers who have bestowed their valuable patronage over the decades to help them secure a transition to alternative materials with a minimum of complication. Plans are being formulated for the reassignment of Asahi Kasei personnel involved in acrylic fiber operations.

Asahi Kasei was Japan´s first acrylic fiber manufacturer, with commercial production of Cashmilon™ staple based on proprietary technology beginning in 1959 at its Fuji Plant. Widely used in sweaters and blankets, acrylic staple is characterized by its soft, wool-like feel. From early on, Cashmilon™ found strong demand in overseas markets. In 1962 Asahi Kasei constructed an acrylonitrile plant at its petrochemicals complex in Kawasaki, establishing an integrated production infrastructure from feedstocks to fibers. Pewlon™ filament was commercialized in 1967, and Lastan™ flame-resistant fiber was commercialized in 1986, with acrylic fibers forming a core segment of Asahi Kasei´s fibers and textiles operating sector.