Asahi Kasei Divests Daramic Lead Battery Separator Business

Asahi Kasei said Dec. 2 it has divested its Daramic lead battery separator business to Kingswood Capital Management. 

“As we enter a new era for our company, it is critical that we align our resources with areas that will drive future growth,” said Hideyuki Yamagishi, Asahi Kasei’s primary executive officer and president of the material sector. “This divestiture represents a strategic step that allows Asahi Kasei to evolve its capabilities with high-potential initiatives, such as strengthening our electronics business and expanding our lithium-ion battery separator business in North America, both key drivers of profit growth.”

Asahi Kasei acquired Daramic through the purchase of Polypore in August 2015, gaining ownership of the lead battery separator business and the Celgard dry-process lithium-ion battery separator business.

Moving forward, Asahi Kasei plans to strengthen its position in the battery separator market through continued investment in its Hipore wet-process lithium-ion technology, with a focus on the automotive sectors in North America, Japan and Korea, the company said.

The company is in the process of a three-year medium-term management plan to improve capital efficiency and accelerate earnings by converting past growth investments into tangible returns. To support this, the company is implementing structural reforms that channel resources to its key growth pillars—pharmaceuticals, critical care, overseas homes, and electronics.

Other actions aligned with this strategy include exiting methyl methacrylate monomer and related businesses, and expanding capacity for Pimel photosensitive polyimide.