100 Stories1974 The Cashmilon™ Business in Ireland

The first overseas expansion project was a series of hardships. The first of these was the production of acrylic staple fiber (Cashmilon) in Ireland and the manufacture of spun yarn made from it for sale in Europe.

In 1974, Asahi Synthetic Fibers, a joint venture for the production and sale of Cashmilon acrylic staple fiber, and Asahi Spinning, a joint venture for the yarn spinning business, were established in Ireland, and business was developed mainly in Europe.

Insufficient research and experience led to frequent rudimentary mistakes, which caused considerable hardship for the staff from Japan. A number of problems arose, including the lack of substantive deliberations on the business plan when the company entered the market, and a lack of historical awareness when expanding overseas. In addition, the lack of research on geography, climate, markets, logistics, labor, and all other aspects of the project were also exposed, resulting in many hardships during construction and initial operations.

In the midst of all this, the company faced severe challenges, including the impact of two major oil crises. In particular, Asahi Synthetic Fibers was forced to operate at a loss due to the large investment in its facilities.

Asahi Kasei held discussions with the Industrial Development Agency of the Republic of Ireland, which supported the project, regarding a restructuring plan for the business. As a result, the decision was made to establish a new company in 1981 to continue the business.

The new company strove to renew expansion and development of the Cashmilon business in Europe, as Asahi Kasei Europe strengthened its sales force and costs were forecasted to be thoroughly reduced by converting heavy oil boilers to coal boilers, etc.

In addition to business activities, the Japanese staff in Ireland actively participated in local festivals and other events, playing a role in local revitalization activities.

In 1992, they opened a yakitori stall at a local summer festival. Instead of the salt and pepper seasoning that was familiar to the locals, they ventured to use Japanese-style sauce, which was very well received. The food stall was a great success, and the Japanese presence as a member of the local community was well publicized, even appearing in Asahi Kasei's company newsletter.

The Cashmilon business in Ireland functioned as a member of the local community overcoming a difficult time. In the late 1990s, intensifying competition, soaring raw material prices, and drastic changes in the exchange rates of European currencies led to continued unfavorable business conditions, and although a management buyout (MBO) was considered, a final agreement with the employees could not be reached, and the decision was made to withdraw the business in 1997.

Asahi Kasei’s Irish Cashmilon business faced a series of hardships from its initial entry into the market in 1974, but as a result of continued efforts, the business continued for more than 20 years. This was the result of a great deal of hard work and effort at the site. At the time of the withdrawal of the business, the company was greatly appreciated for its contribution to the local community, and the words “Thank you” were prominently displayed in Japanese in a local newspaper.