Discontinuation of acrylic latex and photocatalyst coating businesses and closure of Wakayama Plant
May 12, 2021
Asahi Kasei Corp.
Asahi Kasei has decided to discontinue its businesses for Polydurex™ and Polytlon™ acrylic latexes and for photocatalyst coating, and to close its Wakayama Plant which manufactures these products.
Acrylic latex has been manufactured at the Wakayama plant since 1970 and supplied to customers around the world for 51 years, while photocatalyst coating has been manufactured at the same plant since 2009 and supplied in Japan for 12 years. Recently, however, demand has declined especially in the domestic Japanese market, resulting in lower shipment volumes and diminished profitability. Although various efforts have been made to enable both businesses to continue, the decision was made to discontinue the businesses and to close the Wakayama Plant considering the difficulty of devising a strategy for future expansion.
Overview of the discontinuing businesses
| Business | Acrylic latexes | Photocatalyst coating |
|---|---|---|
| Brand name | Polydurex™ and Polytlon™ | — |
| Applications | Paint, cement, adhesive, etc. | Home exterior anti-fouling paint |
| Plant name | Wakayama Plant, Performance Coating Materials Division, Specialty Solutions SBU | |
| Plant location | 2255 Fujitachofujii, Gobo City, Wakayama, Japan | |
| Number of employees | 38 | |
Outline of the closure
- Schedule for cessation of manufacture
- April 30, 2022
- Schedule for cessation of sales
- October 31, 2022
- Disposition of employees
- To be reassigned to other businesses of Asahi Kasei
Under the Cs+ for Tomorrow 2021 medium-term management initiative, Asahi Kasei is prioritizing the allocation of management resources to transform a business portfolio based on the four perspectives of high profitability, high market growth, priority fields for provision of value, and sustainability. The management resources of the acrylic latex and photocatalyst coating businesses will be reallocated to other businesses.