Japan’s Asahi Kasei has set up a German subsidiary based in Düsseldorf as a springboard for further expansion in Europe. Asahi Kasei Europe will start trading on Apr. 1 with a market capitalization of €1 million. Its key focus will be on the automotive industry.

As the parent company is turned into a holding on Apr. 1, the new European arm will be part of a new Material business segment created through the merger of three formerly independent operating companies: Asahi Kasei Chemical, Asahi Kasei Fibers and Asahi Kasei E-Materials and incorporating the Asahi Kasei Microdevices business.

The Japanese company said various of the Material businesses have operated separately in Europe, but the establishment of a base in Germany will enable deeper ties to be forged and accelerate expansion in the region’s growing automotive industry, in which the country plays a key role.

Separately, Asahi Kasei and Mitsubishi Chemical have received all the required regulatory approvals to establish their previously announced joint venture in Japan – Asahi Kasei Mitsubishi Chemical Ethylene Corp. – which will also become operational on Apr 1.