100 Stories2018 Overseas Expansion of the Housing Business and the Acquisition of Erickson Framing Operations

The acquisition of Erickson Framing Operations played a central role in the overseas development of Asahi Kasei Homes. In 2017, the company entered into a capital alliance with the Australian housing company Macdonald Jones Homes, and also embarked on the acquisition of Erickson Framing Operations to further promote the business by leveraging Homes' features and strengths in North America.

Founded in 1975, Erickson Framing Operations is a component supplier that manufactures, sells, and installs panelized walls and roofs for wooden detached houses in the United States. The company supplied the equivalent of more than 3,000 homes per year to detached home builders.

In the U.S., most houses were built on site using lumber, and the industrialization of building in factories and assembling on site, or prefabrication, had not progressed. The company entered the market in the belief that it would be able to reduce costs and strengthen its manufacturing and construction capabilities through the industrialization know-how it had cultivated in the prefabricated housing business.

Erickson Framing Operations welcomed the acquisition because of Asahi Kasei Homes' track record of industry innovation in Japan, its priority on workplace safety, and its focus on community and employee care; the acquisition was finalized in November 2018. The merger came together with a shared vision of how to build a strong construction system in the U.S. and bring positive change to an industry that has long been in transition.

The aim of the acquisition was to create new value by combining Asahi Kasei's expertise in industrialization with Erickson Framing Operations' ability to further streamline manufacturing and construction in the U.S., where the need for cost reduction and building site rationalization has only increased due to a chronic shortage of craftsmen and rising construction costs caused by rising material prices.

In 2020, Asahi Kasei established Synergos LLC, a holding company for its housing business in North America. Synergos LLC was established to oversee and manage the growing construction-related business following the acquisition of Austin Group (Austin Electric Services, Austin Concrete & Stone and Austin HVAC), a residential electrical, foundation, and HVAC contractor for detached houses.

The name “Synergos” is derived from the Greek word meaning “to work together” and represents Asahi Kasei's values. Furthermore, after acquiring Austin, Asahi Kasei continued to pursue synergies by merging with Erickson Framing Operations as well.

Asahi Kasei Homes had been a Japan-focused business to date. Starting with the acquisition of McDonald Jones Homes in 2017, the company has embarked on overseas operations, aiming to streamline and provide quality buildings overseas like never before. Asahi Kasei's medium- to long-term management goal is to expand sales from 600 billion yen in fiscal 2018 to 1 trillion yen, and Asahi Kasei Homes plans to grow its overseas business as one of its pillars along with its existing contracting business and stock business.