Asahi Kasei

Basic Information

Stock Code
3407
Industry
Chemicals
Category Detail
Chemicals & Chemical Products
Prefecture
Tokyo
Establishment Year
May 1931
Listing Year
May 1949
Official Website
https://www.asahi-kasei.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Toray, Resonac Holdings, Sumitomo Chemical, Tosoh, Shin-Etsu Chemical, Mitsui Chemicals, Mitsubishi Chemical Group, UBE

Overview

Asahi Kasei is a major comprehensive chemical company founded in 1931, which has established a top-class position in Japan's chemical industry through diversified operations including housing, healthcare, and fibers.

Current Situation

Asahi Kasei recorded consolidated sales of approximately 2.17 trillion yen and net profit of about 147.5 billion yen in the fiscal year ended March 2019, maintaining a solid financial base. It operates in domestic and international markets across its three major pillars: chemicals, housing, and healthcare. In chemicals, it focuses investments on advanced materials such as high-performance polymers and separators. The housing business steadily progresses centered on Hebel Haus, while the medical and pharmaceutical business grows in critical care. In recent years, it has focused on developing and commercializing environmentally friendly technologies, promoting sustainability management. It positions increasing overseas sales ratio and new material development as mid-term strategies to aim for sustainable growth. In the early 2020s, it is recovering from a semiconductor business fire and undergoing business reorganization. Its diverse business portfolio and technological capabilities are the sources of its competitiveness.

Trivia

Interesting Facts

  • Founded in 1931, independent from the Nitchitsu Conglomerate
  • Saran Wrap holds top market share in Japan
  • Asahi Kasei Athletics Club has 26 New Year Ekiden wins, the most
  • Medical life-support devices expanded in Western markets via U.S. Zoll acquisition
  • Hebel Haus housing receives high evaluation for seismic technology
  • Top-class position in Japan's chemical industry through diverse businesses
  • Expanded not only into manufacturing but also real estate and healthcare
  • 2015 pile driving data falsification issue emerged and is being addressed
  • Celebrated 100th anniversary in 2022 as a historic company
  • Differentiates in market with proprietary high-functional polymer technology
  • Deploys water treatment equipment as environmental business
  • Pursues sustainable innovation through R&D in wide fields
  • Asahi Kasei Judo Club has produced numerous Olympic gold medalists
  • Corporate philosophy: 'Creating for Tomorrow'
  • Has capital and transaction relationships with many major companies

Hidden Connections

  • Past business and capital ties existed with Nitchitsu Conglomerate-affiliated companies sharing roots with Asahi Kasei
  • Has history of contributions to China's water treatment field with unique environmental technology
  • Holds important position in Japan's electronic component manufacturers and automotive parts supply chain
  • Asahi Kasei building materials' pile driving fraud issue rippled across the construction industry
  • Conducts joint ventures with competitors like Sumitomo Chemical and Mitsubishi Chemical
  • Enhanced technological capabilities in medical devices through overseas acquisitions
  • Hebel Haus housing brand name is firmly established as an image brand
  • Strengthening technology introductions and corporate PR via official YouTube channel

Future Outlook

Growth Drivers

  • Expansion of demand for advanced materials and high-functional polymers
  • Global growth in medical and healthcare business
  • Increasing demand for eco-friendly and seismic-resistant housing
  • Rising market interest in environmental businesses
  • Steady demand for semiconductor-related materials
  • Acceleration of overseas expansion and emerging market development
  • Business efficiency through digitalization and data utilization
  • Promotion of sustainable products and circular materials
  • Competitive strengthening through regulatory compliance technology development
  • Multifaceted utilization of corporate brand

Strategic Goals

  • Achieve overseas sales ratio over 40%
  • Achieve 50% reduction in environmental impact
  • High-functional materials sales ratio over 60%
  • New growth business sales of 200 billion yen
  • 20% improvement in manufacturing efficiency via digital technology
  • Accelerate global expansion of medical and healthcare business
  • Expand market share in housing business
  • Build sustainable supply chain
  • Complete diversity promotion and workstyle reforms
  • Maintain and strengthen R&D investment ratio

Business Segments

Chemical Manufacturing

Overview
Provides a wide range from materials to functional materials, supplying products to various industries.
Competitiveness
Development capabilities for diverse materials using cutting-edge technology
Customers
  • Automotive Manufacturers
  • Electronic Component Manufacturers
  • Construction Companies
  • Chemical Product Manufacturers
  • Pharmaceutical Manufacturers
Products
  • High-Performance Polymers
  • Separators
  • Synthetic Resins
  • Electronic Materials
  • Medical Device Components

Housing-Related Business

Overview
Provides housing building materials and design/construction services, supporting housing safety and comfort.
Competitiveness
High reliability of building materials based on seismic technology
Customers
  • Construction Contractors
  • Real Estate Developers
  • Design Offices
  • Homeowners
Products
  • High-Seismic-Resistance Housing Components
  • Insulation Materials
  • Building Materials
  • Renovation Services

Medical and Pharma Business

Overview
Supports medical sites through development, manufacturing, and sales of medical devices and pharmaceuticals.
Competitiveness
Advanced medical technology and overseas expansion capabilities
Customers
  • Hospitals and Clinics
  • Pharmaceutical Manufacturers
  • Medical Device Sales Companies
  • Research Institutions
Products
  • Medical Pharmaceuticals
  • Medical Devices
  • Critical Care Products
  • Reagents and Inspection Drugs

Electronic Materials and Semiconductors

Overview
Provides high-functional materials for electronic components.
Competitiveness
Development and quality control of high-performance materials
Customers
  • Semiconductor Manufacturers
  • Electronics Development Companies
  • Display Manufacturers
Products
  • Optical Films
  • Semiconductor Encapsulants
  • Photoresists

Fiber Materials Business

Overview
Supplies to diverse industries through planning and manufacturing of fiber materials.
Competitiveness
Multifunctional fiber technology and customization capabilities
Customers
  • Apparel Manufacturers
  • Automotive Interior Contractors
  • Industrial Fiber Users
Products
  • Synthetic Fibers
  • Nonwovens
  • Functional Fibers

Environmental Devices and Industrial Machinery

Overview
Develops and supplies machinery and devices contributing to environmental conservation.
Competitiveness
High technological capabilities and eco-friendly product lineup
Customers
  • Water Treatment Operators
  • Manufacturing Companies
  • Public Institutions
Products
  • Water Quality Treatment Equipment
  • Exhaust Gas Removal Devices
  • Filtration Devices

Automotive Parts Business

Overview
Provides chemical materials centered on automotive components.
Competitiveness
Integrated supply system for high-functional materials
Customers
  • Domestic and Overseas Automakers
  • Tier-2 Suppliers
Products
  • Automotive Batteries
  • Electronic Components
  • Plastic Parts

Raw Material Supply and Energy Materials

Overview
Focuses on stable supply of basic chemical raw materials.
Competitiveness
Top-class domestic production capacity and supply chain
Customers
  • Chemical Industry Manufacturers
  • Petroleum Product Manufacturers
Products
  • Ammonia
  • Caustic Soda
  • Petrochemical Raw Materials

Renewable Energy Materials

Overview
Promotes environmentally friendly products to contribute to sustainable society.
Competitiveness
Unique technologies considerate of the environment
Customers
  • Solar Power Operators
  • Environmental Companies
Products
  • Solar Cell Materials
  • Energy-Saving Building Materials

Food Packaging Materials

Overview
Provides packaging materials that contribute to food safety.
Competitiveness
High-functional packaging technology and brand trust
Customers
  • Food Manufacturers
  • Distributors
Products
  • Food Packaging Films
  • Storage Containers

Critical Care Products

Overview
Receives high market evaluation for developing life-saving medical devices.
Competitiveness
Technology integration through overseas acquisitions
Customers
  • Emergency Medical Facilities
  • Medical Device Sales Companies
Products
  • Life-Saving Medical Devices
  • Intensive Care Products

High-Functional Resin Development

Overview
Conducts research and development of resins with advanced functionality.
Competitiveness
Balance of proprietary technology and mass production capabilities
Customers
  • Electronics Manufacturers
  • Machinery Parts Manufacturers
Products
  • Functional Polymers
  • High-Heat-Resistant Resins

Competitive Advantage

Strengths

  • Diversified business portfolio
  • High R&D capabilities and research organization
  • Strong brand and market recognition
  • Extensive sales network domestically and internationally
  • Long-term financial stability
  • Promotion of environmental response and sustainability
  • Global manufacturing capabilities
  • Innovative product development in healthcare
  • High reliability in housing
  • Collaboration with numerous joint ventures and subsidiaries
  • Leadership in advanced materials
  • Flexible business reorganization and management strategy
  • Strong customer base
  • Market responsiveness through diverse technology integration
  • Stable capital structure

Competitive Advantages

  • Comprehensive strength as Japan's 3rd largest chemical sales
  • Integrated business model of housing, healthcare, and chemicals
  • Advanced high-performance polymer and separator technology
  • High trust and penetration of Asahi Kasei brand
  • Market diversification through global expansion
  • Technology acquisition via Zoll acquisition in medical devices
  • Strong R&D foundation and accumulation of proprietary technologies
  • Pioneer status as seismic-resistant housing brand
  • Product lineup responding to diverse customer needs
  • Active investment and development in environmental technology
  • Broad business from semiconductor materials to auto parts
  • Financial soundness and long-term management perspective
  • Appropriate exit and reorganization from challenged businesses
  • Close partnership building with customers
  • High quality control and product reliability

Threats

  • Risks from global chemical material supply-demand fluctuations
  • Intensifying competition in new material development
  • Impacts from international political and economic instability
  • Stricter environmental and legal regulations
  • Adaptation delays due to rapid technological innovation
  • Expansion of competitors from China and emerging countries
  • Accident risks such as semiconductor business fires
  • Profit fluctuations from exchange rate changes
  • Cost increases from resource price fluctuations
  • Rising costs for aging equipment renewal
  • Intensifying competition for talent in labor market

Innovations

2024: Mass Production Start of Bio-Resin Raw Materials

Overview
Established mass production system for sustainable bio-based resin raw materials, promoting reduction in environmental impact.
Impact
Strengthening eco-friendly product lineup and opening new markets

2023: Strengthening Semiconductor Material Development

Overview
Developed new materials such as high-functional encapsulants needed for advanced semiconductor manufacturing, contributing to yield improvement.
Impact
High evaluation from domestic and international semiconductor manufacturers

2022: Dissemination of Low-Environmental-Impact Technology

Overview
Promoted application of energy-efficient manufacturing processes and utilization of renewable resources.
Impact
Contributes to CO2 emission reductions

2021: Expansion of Critical Care Medical Devices

Overview
Strengthened life-saving medical field through consolidation of U.S. Zoll Medical.
Impact
Medical device sales increased 20% year-over-year

2020: New Applications Development for High-Functional Polymers

Overview
Accelerated new material development for automotive lightweighting and electronics.
Impact
Improved competitive edge in the industry

Sustainability

  • Expansion of renewable energy introduction
  • Reduction of manufacturing waste and promotion of recycling
  • Development of biomass products for low environmental impact
  • Strengthening employee safety and health management
  • Promotion of environmental protection activities with local communities
  • Setting and execution of CO2 emission reduction targets
  • ESG evaluation of supply chain
  • Building procurement policies for sustainable materials
  • Advancement of water resource management and water-saving technology
  • Promotion of diversity and inclusion
  • R&D of energy-saving technology
  • Expansion of eco-design products