Regarding equity-method affiliate PTT Asahi Chemical Co., Ltd. (PTTAC), a 50-50 joint venture in Thailand between Asahi Kasei and PTT Global Chemical Public Company Limited (PTTGC), at a General Meeting of Shareholders held today a resolution was adopted to discontinue PTTAC's operations and deconstruct its plant facilities.
1. Background
Established in 2006 for the manufacture and sale of acrylonitrile (AN) by the propane process, methyl methacrylate (MMA) by the ACH process, and ammonium sulfate, PTTAC operated as a manufacturing site to supply customers in Southeast Asia. Beginning around 2022, the company's competitiveness declined as a sluggish economic environment persisted and feedstock costs rose. Furthermore, a worsening supply-demand balance due to production capacity increases in China has resulted in an adverse state of earnings. As a result of discussions, Asahi Kasei and PTTGC determined that the sound operation of PTTAC would be difficult to continue moving forward, and agreed to discontinue its operations.
2. Outline of PTTAC
1) Company name
PTT Asahi Chemical Co., Ltd.
2) Location
Rayong, Thailand
3) Shareholders
Asahi Kasei Corp. 50%, PTT Global Chemical 50%
4) Representative
Masao Takimoto
5) Date of establishment
August 1, 2006
6) Start of operation
January 1, 2013
7) Fiscal year end
December 31
8) Employees
235 (including 5 seconded from Asahi Kasei)
9) Business field
Manufacture and sale of propane-process AN, ACH-process MMA, and ammonium sulfate
3. Schedule
Discontinuation of operations of PTTAC will proceed in accordance with the schedule shown below. The schedule for dissolution of PTTAC will be determined after deconstruction of plant facilities, etc., has progressed.
October 31, 2024
Conclusion of production
December 31, 2024
Conclusion of sales
2025–2028
Deconstruction of plant facilities
With a portion of business discontinuing, Asahi Kasei will continue to strengthen its competitiveness for the sustainable growth of corporate value. Regarding AN and MMA, Asahi Kasei will continue to provide stable supply to customers mainly in Asia.
The financial impact of this discontinuation has been factored into Asahi Kasei's consolidated forecast for fiscal 2024 which was announced on November 1, 2024.