Core Viewpoint - As a result of increased production by Chinese companies, the market conditions have deteriorated, prompting Asahi Kasei to exit four specific businesses, including acrylic resin and its raw material MMA [1] Group 1: Business Exit and Restructuring - Asahi Kasei announced the decision to exit four businesses, including MMA (methyl methacrylate), acrylic resin, SB latex, and CHMA (cyclohexyl methacrylate) [1] - The production of these products will gradually cease between March 2026 and September 2027, with sales expected to stop by the end of the same year [1] - The company will incur approximately 25 billion yen in structural reform costs, which will be recorded as special losses in the financial report for March 2026 [1] Group 2: Workforce Management - The 190 employees at the Kawasaki manufacturing site will be reassigned to other positions within the facility [1]

Core Viewpoint - Asahi Kasei has decided to withdraw from the production of MMA, CHMA, acrylic resins, and SB latex due to prolonged economic downturns, rising raw material costs, and supply-demand imbalances caused by increased production capacity in China [1][4]. Group 1: Business Decisions - On May 27, Asahi Kasei announced the closure of its Kawasaki refining plant to optimize its business structure and improve overall operational efficiency [1]. - The company plans to stop production of MMA by September 2026, CHMA by March 2026, acrylic resins by September 2026, and SB latex by September 2027 [5]. Group 2: Market Context - The global MMA production capacity is projected to be 6.4 million tons in 2024, with significant contributions from companies like Mitsubishi Chemical, Asahi Kasei, and others [2]. - In China, the MMA production capacity has reached 2.62 million tons, driven by various domestic enterprises [2]. Group 3: Product Applications - MMA is a crucial organic chemical raw material used in the production of PMMA and other applications such as PVC additives and acrylic fibers [1]. - CHMA is utilized in coatings, adhesives, and plastic modification, extending to high-value products in optical materials and biomedical applications [2]. - Acrylic resins are widely used in coatings, adhesives, and plastics due to their excellent weather resistance and low VOC emissions [3]. - SB latex is applied in paper treatment, fiber processing, and coatings, enhancing strength and durability [3]. Group 4: Future Directions - Asahi Kasei's future focus includes hydrogen energy, green low-carbon technologies, high-performance materials, and semiconductor-related businesses [4].