Asahi Kasei and Teijin Establish Distribution Joint Venture
Asahi Kasei and Teijin intend to merge Asahi Kasei Advance, a wholly-owned subsidiary of Asahi Kasei, and Teijin Frontier, a wholly-owned subsidiary of Teijin, into a new company.
The two Japanese companies Asahi Kasei and Teijin are merging their trading divisions Asahi Kasei Advance and Teijin Frontier, which operate as wholly owned subsidiaries, to form a new company. Teijin will hold an 80% stake in the new joint venture as the acquiring company, while Asahi Kasei will hold a 20% stake.
Asahi Kasei Advance was established in 2015 as a trading company that mainly distributes Asahi Kasei Group products such as fibers, chemical products and building materials globally. In order to realize further sustainable growth, it was decided to merge Asahi Kasei Advance with Teijin Frontier. Teijin Frontier is a trading company with a strong global network in sourcing and production of high-performance fibers. The announced merger will combine the distribution channels and product portfolios of Teijin Frontier and Asahi Kasei Advance. The strengths of both companies will be leveraged to form a group with greater competitiveness and a solid foundation for growth focused on sustainable value creation. Hangzhou Asahikasei Textiles, a subsidiary of Asahi Kasei (China) that manufactures and distributes textile products, will be transferred to Asahi Kasei Advance prior to integration.
The impact of the integration on Asahi Kasei's consolidated results is insignificant. Further details, such as the future name, headquarters or management team of the joint venture, will be announced at a later date.
As part of its three-year medium-term management plan "Trailblaze Together", Asahi Kasei is focusing on improving capital efficiency. To this end, the company is currently implementing comprehensive structural reforms in the materials business and concentrating resources on key growth areas - pharmaceuticals, critical care, electronic components and materials for the semiconductor industry. Recent measures such as the exit from the methyl methacrylate (MMA) monomer business and the expansion of capacity for photosensitive polyimides show that Asahi Kasei is consistently implementing this strategy and strengthening the basis for sustainable, profitable growth.
