Home / Knowledge / News / Textiles / Asahi-Teijin to dissolve Solotex JV for PTT fiber
Asahi-Teijin to dissolve Solotex JV for PTT fiber
14
Jul '09
Asahi Kasei Fibers and Teijin Fibers will dissolve Solotex Corp., their joint venture for polytrimethylene terephthalate (PTT) fiber operations, at the end of March 2010.

PTT was commercialized as a molding material in the late 1990s. Asahi Kasei Fibers began development of PTT fiber in 1996, with production and sale beginning in 1999. Teijin Fibers began developing PTT fiber in 2000 after licensing spinning technology from DuPont.

Solotex Corp. was established in May 2002 as a fifty-fifty joint venture combining the PTT fiber operations of Asahi Kasei Fibers and Teijin Fibers. Development of the PTT fiber business has advanced with sales performed by Solotex Corp., and production on consignment to its parent companies.

With declines in feedstock prices and other production costs failing to materialize as anticipated, however, market development has centered on applications in high-priced product fields. As a result, the market scale initially envisioned could not be obtained.

Despite every effort to improve the operating structure, it became clear that prospects for stable earnings were not forthcoming, particularly with the substantial impact of the global economic slowdown which began last year. The decision was thus made to terminate the joint-venture agreement and dissolve Solotex Corp.

Schedule
Sales termination: End of December 2009
Joint venture dissolution: End of March 2010
Product supply: To the extent possible, product stocks will be raised prior to termination of production in accordance with customer requests
Following dissolution: - Asahi Kasei Fibers will perform neither production nor sale of PTT fiber
- Teijin Fibers is studying the possibility for succession with an independent PTT fiber business

Effect on financial performance
This dissolution will have no significant effect on the financial performance of either Asahi Kasei Fibers or Teijin Fibers.

Profile of Solotex Corporation
Location: 3-3-23 Nakanoshima, Kita-ku, Osaka, Japan
President: Eiji Sato
Establishment: May 21, 2002
Paid-in capital: ¥250 million (50% by Asahi Kasei Fibers, 50% by Teijin Fibers)
Net sales: ¥960 million (year ended March 31, 2009)
Business line: Production & sale of PTT fiber

Teijin Fibers

Must ReadView All

Textiles | On 20th Jan 2017

TEA expects budget to upscale textile skill industry

The Tiruppur Exporters’ Association (TEA) has requested the Central...

Textiles | On 20th Jan 2017

Bangladesh could earn $60 billion in exports by 2021

Bangladesh is expected to earn over $60 billion in exports by the...

Courtesy: PIB

Textiles | On 20th Jan 2017

Govt to help Tangaliya weavers purchase looms: Irani

Government of India will facilitate Tangaliya weavers in purchase of...

Interviews View All

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search