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Suminoe Teijin Techno to produce auto fabrics
Apr '09
Suminoe Textile Co., Ltd. and Teijin Fibers Limited agreed to establish a joint venture company that will develop, manufacture and sell fabrics for automotive seats and ceilings. In combining their strengths in fabrics and raw materials, the two companies expect their joint company to grow fast by responding effectively to the evolving needs of automotive manufacturers.

Suminoe Teijin Techno Co., Ltd. (tentative), the new firm, will begin operating on December 1, 2009, the date of its official establishment. It will be located in Chuo-ku, Osaka and capitalized at 450 million yen, with Suminoe Textile contributing 50.1% and Teijin Fibers 49.9%.

The joint venture will consolidate Suminoe Textile's car seat business, with the exception of its overseas division, and Teijin Fibers' car seat fabric business, including all outstanding shares in Teijin Tecloth Limited, Teijin Fibers' wholly owned subsidiary, and Owari Seisen Co., Ltd., Teijin Tecloth's wholly owned subsidiary.

Although the Japanese auto market has reached a plateau, global growth is expected to remain steady. Suminoe Teijin Techno will capitalize on promising opportunities for automotive fabrics due to the market's strong demands for meticulous quality control and stable supply. The company also expects to exploit auto manufacturers' increased need to reduce their costs of materials due to global competition. Suminoe Teijin Techno will offer auto fabrics that also meet rising demands for environmental friendliness, an area in which Teijin Fibers is particularly strong.

Suminoe Textile has leveraged its close working relationships with auto manufacturers to develop a large share of the auto-fabrics market through innovative, proactive sales. The Teijin Group possesses cutting-edge technologies for developing and processing raw fibers and fabrics, as well as the size and expertise to ensure stable production and quality control.

The joint venture will enable Suminoe Textile to upgrade its fabric dyeing and finish processing capabilities while providing the Teijin Group with a direct avenue into the automotive manufacturing industry, as well as specialized understanding of the market's needs.

Looking ahead, the new firm aims to become the world's leading manufacturer of automotive interior parts by eventually expanding its operations to cover everything from raw fiber production to final-product manufacturing. Working hand in hand with auto companies, it will strive to provide not only car seats and fabrics but also next-generation modularized products for automotive interiors.

Teijin Fibers Limited

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