Asahi Kasei to terminate tire cord manufacturing operation in Japan

Miyazaki, Japan – Asahi Kasei is to discontinue its Asahi Kasei Cord Co. tire cord manufacturing business in response to “increasingly difficult” trading conditions.

The market for tire cord in Japan has been impacted by sluggish automotive production and increased imports, Asahi Kasei said 14 July.

Also, explained the Japanese group, recent rises in raw materials and fuel prices have led to higher costs and a “significant deterioration in earnings”.

As a result, the group will cease production of tire cord at the Asahi Kasei Cord Co. facility in Hyuga City, Miyazaki, by 31 March 2024.

Closure of the plant is to be completed by 31 March 2025, Asahi Kasei adding that the 70 employees of the plant would be reassigned to other businesses.

Asahi Kasei will, meanwhile, shift the focus of its polyamide fibre resources from general-purpose tire cord to airbag and speciality-tire applications.

The Japanese group manufactures Leona polyamide 66 filament, which is mainly used as airbag yarn and tire cord.

Asahi Kasei is currently building an airbag production facility in Vietnam and operates a JV with Teijin Frontier to manufacture fabric for airbags in China.