Japan-based Asahi Kasei has announced that it is liquidating the Asahi Kasei Cord business, a decision made due to the slow growth of vehicle production and the growing number of products being imported from other countries.

Asahi Kasei Cord has produced the nylon yarn required for tire cord - the reinforcing fabric in tires - in the country since 1970. For the past 53 years, the company has been the key manufacturing and supply base for Asahi Kasei's nylon filament business.

Another contributing factor in the liquidation was the recent sharp rise in raw material and fuel prices, resulting in increased costs and a loss of earnings.

Asahi Kasei will now shift its nylon filament management resources from general-purpose tire cord applications to airbag and specialty tire cord applications, where further growth is expected, to enhance profitability.