MIYAZAKI, Japan—Asahi Kasei will discontinue its Asahi Kasei Cord Co. tire cord manufacturing business in response to "increasingly difficult" trading conditions.
The company said in a July 14 statement that the market for tire cord in Japan has been impacted by sluggish automotive production and increased imports. It added that the recent rise 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 cords at the Asahi Kasei Cord Co. facility in Hyuga City, Miyazaki, by March 31, 2024, with closure expected to be completed by March 31, 2025.
Asahi Kasei said the 70 employees of the plant would be reassigned to other businesses, and the company will shift the focus of its polyamide fiber resources from general-purpose tire cords to airbag and specialty tire applications.
The Japan-based group manufactures Leona polyamide 66 filament, which is mainly used as airbag yarn and tire cord.
Asahi Kasei currently is building an airbag production facility in Vietnam and operates a JV with Teijin Frontier to manufacture fabric for airbags in China.
