Asahi Kasei Corp. plans to shut down its Thai chemical joint venture with PTT Group, scaling back its global acrylonitrile production by 20% as Chinese competition erodes profitability.
The Japanese chemical maker halted output at PTT Asahi Chemical in October and will end sales in December. The move marks a retreat from a key Southeast Asian market where the company struggled with higher-than-expected raw material costs and weakening demand for ABS plastics.
The shutdown of the 50-50 venture will reduce Asahi Kasei’s annual acrylonitrile capacity to 730,000 tonnes from 930,000 tonnes. The company recorded a 41.7 billion yen ($193 million) investment loss, including a 38.2 billion yen impairment charge, for the fiscal year ended March.
The withdrawal reflects broader challenges in Asahi Kasei’s petrochemical division, which posted an 8.4 billion yen operating loss last year. The company plans to explore selling or exiting operations worth about 200 billion yen in sales, roughly a third of its petrochemical business.
President Koshiro Kudo indicated the company is reviewing ownership of its South Korean acrylonitrile facilities, its largest production base, with a decision expected in fiscal 2024. More than 200 Thai workers will be considered for transfers within PTT group.
