Asahi Kasei invests in automotive interiors start-up

Tokyo – Asahi Kasei Corp. is to invest in US-based startup NFW, a producer of non-petroleum-based leather-alternative for car interiors, the Japanese group has announced.

The link-up, it said, involves a cooperation with Asahi Kasei company Sage Automotive Interiors Inc. (SAI), a global supplier of automotive interior materials.

Peoria, Illinois-based NFW has developed a platform for producing natural alternatives to petrochemical-based leather, foam and textile materials, according to the 25 Oct statement.

Certified by the US department of agriculture as having 100% bio-based content, NFW's patented leather-alternative, is made from natural rubber, natural fibres, plant oils, natural pigments, and minerals.

The Mirum-branded material is claimed to offer better “durability and quality” than traditional animal-based or synthetic leather products without the use of coatings.

Since its acquisition by Asahi Kasei in 2018, SAI has been expanding its position in the car seating materials market in Europe and China, including through mergers and acquisitions.

The cooperation with NFW will “assist global automakers in reducing the environmental burden of their cars,” said Dirk Pieper, SAI chairman and lead executive for Asahi Kasei’s automotive product portfolio.

The collaboration is the first project within Asahi Kasei’s five-year ‘care for Earth’ investment programme, which runs up to fiscal 2027.

Under the initiative, Asahi Kasei has allocated up to $100 million for investments worldwide in early-stage startups in areas such as hydrogen, energy-storage, carbon-management, and bio-based chemicals.

Car interior materials represent one of Asahi Kasei’s ‘10 growth gears’ – expected to enable the group to grow its operating income by over 70% between 2022 and 2030.