According to the company website press release on April 4 , 2023, Asahi Kasei Construction Materials has decided to close its Iwakuni Plant which manufactures autoclaved aerated concrete (AAC).
The Iwakuni Plant started operation in May 1970 to manufacture pre-cast concrete piles, and began manufacturing AAC in May 1974. After discontinuing the manufacture of pre-cast concrete piles in December 2004, the plant played an important role as a base for the manufacture and supply of AAC in western Japan.
However, demand for AAC in Japan has been gradually declining due to sluggish construction markets, and sales volume declined sharply since fiscal 2020 as an effect of the Covid pandemic. Moreover, earnings have deteriorated due to cost increases associated with steep rises in raw material and fuel prices. Asahi Kasei Construction Materials decided to close its Iwakuni Plant in order to establish an optimal production framework for AAC and improve profitability while maintaining stable supply.
