Asahi Kasei Construction Materials to close its Iwakuni Plant for autoclaved aerated concrete
April 4, 2023
Asahi Kasei Construction Materials Corp.
Asahi Kasei Construction Materials has decided to close its Iwakuni Plant which manufactures autoclaved aerated concrete (AAC).
The Iwakuni Plant started operation in May 1970 to manufacture pre-cast concrete piles, and began manufacturing AAC in May 1974. After discontinuing the manufacture of pre-cast concrete piles in December 2004, the plant played an important role as a base for the manufacture and supply of AAC in western Japan.
However, demand for AAC in Japan has been gradually declining due to sluggish construction markets, and sales volume declined sharply since fiscal 2020 as an effect of the Covid pandemic. Moreover, earnings have deteriorated due to cost increases associated with steep rises in raw material and fuel prices. Asahi Kasei Construction Materials decided to close its Iwakuni Plant in order to establish an optimal production framework for AAC and improve profitability while maintaining stable supply.
Overview of the Iwakuni Plant
- Products
- Hebel™ and Hebel Lite™ autoclaved aerated concrete (AAC) panels
- Location
- Iwakuni City, Yamaguchi, Japan
- Number of employees
- Approximately 70
Outline of the closure
- (1) Schedule for cessation of manufacture
- September 30, 2023
- (2) Schedule for closure of the plant
- March 31, 2025
- (3) Continuation of supply
- Areas supplied by the Iwakuni Plant are scheduled to be supplied by the Hozumi Plant (Gifu Prefecture) and the Sakai Plant (Ibaraki Prefecture) of Asahi Kasei Construction Materials
- (4) Disposition of employees
- To be reassigned within Asahi Kasei Construction Materials