Asahi Kasei Advance and Teijin Frontier Merge for Growth

Asahi Kasei said that they and Teijin Limited, or Teijin, made some kind of deal. They are going to merge. It is an absorption-type merger. Asahi Kasei Advance Corp. is one company. It is fully owned by Asahi Kasei. The other company is Teijin Frontier Co., Ltd. It is fully owned by Teijin. Teijin Frontier will be the surviving company. In this new partnership that will be created via the merger, Teijin will hold 80% of the shares which make up the majority share and Asahi Kasei will hold 20% which is the minority share. The transfer of shares will be done on 1st day October 2026.

Asahi Kasei Advance has been operational since 2015. It is primarily a trading company. It handles products from the Asahi Kasei Group. That includes fibers, chemical products, and construction materials. The business has been growing steadily. The decision was made that running it under Teijin Frontier is better than trying to grow Asahi Kasei Advance by itself. Teijin Frontier combines trading functions with strong global procurement. It also has manufacturing capabilities. It develops and produces high-performance fibers. It provides solutions across many fields. That includes apparel, textiles, and industrial materials.

The integration aims to combine business platforms. It will bring together sales networks and customer bases from both companies. The goal is sustainable growth. Also to maximize corporate value. The strengths of both companies will be used. The new entity will be more competitive. It will have a solid base for growth. It will be positioned to create long-term value.

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Before the merger, Hangzhou Asahikasei Textiles Co., Ltd., a subsidiary of Asahi Kasei in China that makes and sells textiles, will be transferred to Asahi Kasei Advance.

The merger will have little effect on Asahi Kasei’s consolidated earnings.

The surviving company’s name is still to be decided. The location is TBD. The representative and position are TBD. Business field TBD. Paid-in capital TBD. Fiscal year-end TBD. Net assets TBD. Total assets TBD. Shareholders will be Teijin 80 percent and Asahi Kasei 20 percent.

Asahi Kasei is following its three-year medium-term management plan called Trailblaze Together. The company wants to improve capital efficiency. It wants to accelerate earnings. It wants to convert past growth investments into tangible returns. The company is doing structural reforms. The goal is to focus resources on key growth pillars. These include pharmaceuticals, critical care, overseas homes, and electronics.

Recent actions include exiting the methyl methacrylate monomer business and related businesses. Also expanding capacity for Pimel photosensitive polyimide. These moves show that Asahi Kasei is executing the plan carefully. They reinforce the foundation for sustained profitable growth.