100 Stories2020 Asahi Kasei Plastics Completes Plant Relocation

The Chinese government’s “One Belt, One Road” policy, which outlines a broad economic zone concept stretching from China to Europe, has demonstrated a world-leading strategy in environmental protection policy. In response to China's tightening environmental regulations, Japanese materials and parts manufacturers have been forced to relocate their production bases or change their plans. Asahi Kasei was no exception, abandoning the expansion of its plant in Suzhou to build a new plant in Changshu, Jiangsu Province.

In 2002, Asahi Kasei acquired a 51% stake in a subsidiary wholly owned by Nichimen, and at the same time changed its name to “Asahi Kasei (Suzhou) Plastics Compound.” One month later, Asahi Kasei established a wholly owned sales company, Asahi Kasei Plastics, in the Waigaoqiao district of Shanghai, to supply functional resins and compound products and to provide technical support.

Asahi Kasei (Suzhou) Plastics Compound relocated from Suzhou to Changshu in Jiangsu Province in 2019. In order to start production immediately after the relocation, the excellent employees also needed to be transferred together with the company. However, most of the key veteran employees had already set up homes in Suzhou or lived near the company.

This would require them to overcome a commute over a distance of 100 km. Management listened to the employees through two rounds of individual interviews. The management team then developed a welfare program, as well as a transportation system, housing, and cafeteria to meet the needs of the situation and gain the understanding and support of the majority of the employees for the relocation of the company.

In addition, a technical department was established at the new plant in Changshu. New employees have been hired, and an environment has been created to enable technology and R & D to be conducted at full capacity. On the other hand, hiring on-site workers was difficult. In order to keep production running smoothly, 22 new employees needed to be hired, but after more than six months, only three new employees were successfully hired.

While resolving these problems, a labor dispute arose in January of 2021, when the relocation was almost completed. Some of the old employees blocked the gates of the new factory in Changshu with their vehicles. The dispute was successfully resolved through the joint efforts of company executives, employees, and the local government.

We built a relationship of trust by listening to all the employees and maintaining good communication with them. By making improvements to meet their needs and establishing a thorough feedback system, the relocation of the Asahi Kasei Plastics plant was completed. This is the first case of Asahi Kasei’s overseas subsidiary relocating its factory.