BN: First of all thank you, it’s an honor for us to conduct this interview with you. Asahi Kasei is one of Japan’s most iconic companies that can look back on a very long and rich history. The Asahi Kasei story is one of constant innovation and world-leading technology. With that said, what can you tell our readers about Asahi Kasei’s approach towards innovation and how it is reflected in the daily business?
HK: Our group’s leitmotif is “Creating for Tomorrow” and this vision forms the bottom line of all our actions. We want to contribute to a better living of people around the world. We want to foster harmony between human beings and the environment. To achieve this, we are constantly innovating and creating new solutions, new approaches to old problems. We are particularly looking at two major challenges society is facing: sustainable and clean energy production as well as aging populations and health related issues. Our company operates in three business fields: materials, homes, and healthcare. We are focusing on high value added businesses in each of these divisions; we want to come up with truly valuable solutions to society’s challenges.
Looking at our material division for instance; it is important to see that we can build on our vast experience that we gained throughout our long history and the numerous cutting-edge technologies we have developed. Our expertise in fibers technology, that forms a main pillar of our company since its inception, is particularly noteworthy in this context. Adding to this, we possess unique skills and know-how in spinning and weaving. Talking about chemicals, we have our organic synthesis technology for example. Also, looking at processing technologies, we also have our distinctive membrane technology. In electronics, we have compound semiconductor technology as well as silicon-based LSI technology. These are just a few examples of what we combine as a company. Based on our various key technologies, we have diversified our businesses over the years. Today we have a highly diversified range of businesses. This allows us also to make new combinations between our different businesses and business models, and create new value through new combinations.
As I said, sustainability and environmental friendliness are two key values of our company. We are constantly striving to reduce the ecological footprint of our operations and develop solutions for our clients and the society to do the same. Particularly interesting for your audience in Germany in this context could be a recent topic that we are working on – actually in Germany. We are working on a project to utilize extra renewable energy. At certain times there is more renewable energy available than what is needed in this specific moment in time. We are now working on a technology to make use of this abundant extra energy. Through alkaline water electrolysis we are converting it to hydrogen that can be used as an additional sustainable energy source. We are doing a verification test on this right now. Originally, hydrogen has been made based on hydroelectric power, then, it was made from fossil fuel. Now, we can utilize extra renewable energy; when there is extra renewable energy, we can make use of that, and this is in itself a CO2-free process of generating hydrogen. This project is a great example to underline the key values of Asahi Kasei and our corporate vision of creating a society of clean environmental energy. This is especially relevant for Germany that plans to shut down all of its nuclear power plants by 2022 and is in need for new technologies of renewable energy generation.
Another interesting project that we are working on is our UVC LED technology. We are working on an LED lamp that produces deep ultraviolet light (UVC). The important thing to note here is that this LED emits UV light at a wavelength of 280 nanometers; this is the wavelength that proved to be most effective for disinfection. With that said, our LED can be used to disinfect water, air, or surfaces. This technology allows pinpointing exactly on the spots you like to disinfect. So this technology can be used not only in healthcare, but also to disinfect drinking water, for instance also for high volume water treatment. This technology can also be used for many other things that pertain to our daily life, such as disinfecting baby bottles for example. We have high expectations for this technology. We are now in the process testing and developing different applications. Of course, UV light is used for disinfection already, but, ordinarily, up until now, you needed to use a mercury lamp. Our product will not only consume much less energy than a traditional mercury lamp, but will also be much safer.
On the back of all these technologies I mentioned and our strong position in various fields, we are aiming at growing and diversifying our business further substantially. From a management point of view we are looking at the long-term growth target of reaching net sales of 3 trillion Yen and an operational income of 280 billion Yen by 2025.
BN: One pillar of your strategy to 2025 is also “acceleration of globalization”. What is your view on Germany in this context?
HK: We see how Europe, and in particular Germany, is leading the way in setting environmental standards, adopting regulations and shaping the way towards more sustainability in energy production and consumption. With its agenda of abandoning nuclear energy completely by 2022, Germany once again seizes the mantle in this regard. Germany is also taking a leading role in the field of green mobility, such as in the development of e-cars. Sharing the same mindset and vision we are of course interested in being part of this and work with closely with German partners in this venture. We have a lot of technologies and expertise that we can bring in.
Looking at the automotive industry for example, we are very eager to strengthen existing and foster new ties. As a part of this effort, we have recently developed our own concept car, called AKXY. AKXY stands for Asahi Kasei (AK) multiplied (X) by you (Y). With “You” we refer to the automotive manufactures, who are our customers.
We are eager to extend our ties with the automotive industry, particularly with automotive manufacturers and their suppliers in Germany.
AKXY is an electric vehicle that runs on lithium-ion batteries and that has 27 of our products and technologies installed; some of which are already sold in the market, some of them that are still in the stage of development. AKXY combines our know-how in materials, such as our plastic and fibers technologies, such as artificial suede and airbag fibers, but also our sensors technologies. A very relevant example of our state-of-the-art sensors is the oxygen sensor that is built in the car. This sensor monitors automatically the oxygen in the car. If the concentration of oxygen becomes too low, the drivers may start feeling sleepy, what is of course dangerous while driving. So our system automatically regulates the amount of oxygen inside the car.
Overall, an advantage that we have is clearly our very broad product and service portfolio. Once again I would like to stress that Asahi Kasei combines knowledge and products ranging from fiber and plastic technologies, to synthetic rubber for tires, to battery separators for lithium-ion batteries, and sensors and electronics. Having this widespread and comprehensive expertise allows us to offer an all-embracing approach to vehicle manufacturers and tier one suppliers. We are able to be their comprehensive partner for the development of their next generation vehicles. The fact that we were able to produce AKXY, a car that is actually drivable, clearly demonstrates the practicability of our products and technologies. AKXY showcases very well how our expertise and our unique products can make a contribution to the cars of tomorrow and a greener and more sustainable mobility. We do have expectations and hopes that the technologies and products used in AKXY soon will be installed in the cars that your readers will see in the streets in Germany and in German cars all over the world. Of course, we are not going to be the ones who will manufacture the cars, but with our unique technologies we are making it possible for car manufacturers to develop next generation vehicles.
As I said initially, besides contributing to greener ad more sustainable energy production and consumption, and mobility, Asahi Kasei also specializes in finding new answers to health and aging population challenges. Of course, as a Japanese company we are predestinated to do so. In the face of our demographic situation here, earlier than other countries Japan had to delve into solutions to the aging population challenge and therefore today as a country we are a world leader in this regard – and for our part, we as Asahi Kasei are proud to be at the very forefront in building the know-how and necessary technologies to make this possible. Germany, with the second oldest population in the world after Japan, is of course facing similar challenges as Japan. We as a company therefore also see Germany as an opportunity for us to make a difference.
As you may know, Asahi Kasei has a long history with Germany and always had close ties with German businesses. One example is Cupro fiber, the brand name is “Bemberg”. We are now the only company in the world to make this material. Originally, we licensed it from the Bemberg Company in Germany. Also, in our home division we maintain close ties with Germany. One of our main products in this field are Hebel houses. These high-performance housing solutions, very resistant to earthquakes and fires and with good insulation, have their origins in Germany. Also our stretchable fiber, Spandex, originates from Germany, from the company Lanxess. Another collaboration that might be noteworthy in this context is our partnership with a German company to exclusively distribute “Frosch” here in Japan. Frosch is a very environmentally-friendly type of cleaning and cleansing agent. The green and sustainable concept of Frosch is in line with our own philosophy, so we are distributing it here in Japan.
Now looking at current challenges in energy and health, as well as at new opportunities opened by IoT and AI, we are of course closely looking at Germany. Germany is well-positioned in the field of IoT and AI and how to apply it in order to connect and integrate industrial production and build what is called Industry 4.0. We are also working on new solutions how to apply IoT into our manufacturing processes, and, also, utilizing IoT and AI to a higher degree in our business model. Looking at Germany, we think that there is a lot that we can learn from each other.
BN: In a nutshell, what would be your message to the readers of DIE WELT?
HK: Founded in 1931, Asahi Kasei has a very long and successful history. Last year our company celebrated its 95th anniversary. Throughout our history we have launched many innovative, world-first products. We have always been frontrunners when it comes to innovation. The history of Asahi Kasei is one of perpetual innovation. Over the years we have grown into a highly diversified company with numerous businesses; yet all striving for the same vision, building a better life for everybody and fostering harmony between human beings and the environment. In the light of current global challenges, such as in energy and health, Asahi Kasei with all its strength is taking a leading role in finding new answers and solutions to it. The history of our company has also been a history of close collaboration between Japan and Germany. More than ever this transnational collaboration is important because in the end of the day global challenges require answers that build on the best know-how and technologies available, independently from the country. Germany has always demonstrated its strength as an industrial powerhouse and home of innovation. The close collaboration between our company and German car manufacturers stands exemplary for the strength of joint Japanese-German innovation. We clearly want to intensify these ties and go one step further together with Germany – within and beyond the automotive industry.
