Withdrawal from contact lens contract manufacturing business by Asahi Kasei Aime

March 11, 2013
Asahi Kasei Pharma Corp.
Asahi Kasei Aime Corp.

Asahi Kasei Pharma Corp. has reached a decision to withdraw from the contact lens contract manufacturing business of its wholly owned subsidiary Asahi Kasei Aime Co., Ltd.

In December 2012, Asahi Kasei Aime’s contact lens operations other than manufacturing were transferred to Aime Corp., a Japanese subsidiary of CooperVision, Inc. of the US. Although Asahi Kasei Aime became a contact lens contract manufacturer, demand for its mainstay conventional (non-disposable) contact lenses has continued a long-term decline, making it difficult to obtain satisfactory profitability. Despite concerted efforts to achieve a sustainable trajectory for the business, the operating environment only deteriorated further. With little prospect for gaining improved profitability, it was determined that continuation of the business had become impractical.

Forthcoming schedule

Asahi Kasei Aime is scheduled to discontinue manufacturing at the end of November 2013. Deliberations with clients and suppliers will advance so that any disruption to their operations may be minimized.

Financial effect

While expenses related to the removal and disposal of equipment will be incurred, the effect on the Asahi Kasei Groupís consolidated financial performance will not be significant.

Profile of Asahi Kasei Aime Co., Ltd.

President:   Katsuto Motoda
Establishment:   1990
Location:   Nobeoka, Miyazaki, Japan
Paid-in capital:   ¥480 million
Shareholder:   Asahi Kasei Pharma (100%)
Operation:   Manufacture of conventional contact lenses and related products

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