Closure of Nobeoka Eltas Plant

May 15, 2020
Asahi Kasei Corp.

Asahi Kasei has decided to close its plant in Nobeoka, Miyazaki, Japan, for the manufacture of Eltas™ spunbond nonwoven fabric.

The plant has supplied nonwoven fabric mainly for hygiene products such as disposable diapers in the domestic Japanese market for some 19 years since it began operation in 2001. However, the plant was severely damaged when hit by the tornado that occurred in Nobeoka on September 22, 2019, and its operation has been suspended ever since. Although various studies were performed regarding the restoration of operation, the decision was made to close the plant considering the high cost of repair, the deteriorated state of equipment, and the time required for restoration being more than one year.

Overview of the plant

Name
Nobeoka Eltas Plant, Spunbond Division, Performance Products SBU
Location
Nobeoka, Miyazaki Prefecture, Japan
Product
Polypropylene spunbond nonwoven fabric (product name: Eltas™ Guard)
Applications
Hygiene products such as disposable diapers and industrial materials
Production capacity
Not disclosed

Outline of the closure

Schedule for cessation of sales
September 30, 2020
Disposition of employees
To be reassigned to other businesses of Asahi Kasei

Under the Cs+ for Tomorrow 2021 medium-term management initiative, Asahi Kasei is prioritizing and allocating management resources to develop a business portfolio of sustainable and high value-added businesses. In accordance with our Group Vision to enable “living in health and comfort” and “harmony with the natural environment”, our polypropylene spunbond nonwoven fabric business falls under “Life Material” as a priority field for provision of value. Moving forward, Asahi Kasei Spunbond Thailand will play a central role in the ongoing expansion of this business which contributes to life and living for people around the world.