Home / Knowledge / News / Textiles / Teijin to create optimal global production of polyester fibers biz
Teijin to create optimal global production of polyester fibers biz
03
Aug '09
In our Basic Management Policy for the Teijin Group, announced April 27, 2009, we identified our polyester fibers, polyethylene terephthalate (PET) film and polycarbonate resin businesses as “poorly performing businesses” and have since explored a variety of structural reforms based on two key challenges, which are to create optimal global production configurations for these businesses and drastically reorganize loss-making components thereof. As a consequence, at this time we have resolved to execute a number of specific structural reforms for our polyester fibers business.

In addition to the reforms described herein, we will continue to implement a variety of measures in our polyester fibers business. We currently expect the business to return to profitability at the net income level in the fiscal year ending March 31, 2011.

1. Background to Current Reforms
(i) To date, we have implemented a variety of measures aimed at restoring our polyester fibers business to profitability, including (a) withdrawing from loss-making components of the business and shifting our focus to high-value-added products, (b) passing on the impact of high raw materials prices and fuel costs by raising product prices, and (c) lowering production costs and shifting production of certain items overseas. In fiscal 2006 and 2007, these measures yielded a degree of success, particularly for subsidiary Teijin Fibers Limited, the principal company in the business.
(ii) Nevertheless, in fiscal 2008 violent fluctuations in raw materials prices and fuel costs, together with a sharp decline in demand triggered by global recessionary conditions beginning in the second half of the period, provoked a significant operating loss for the business.
(iii) Given the current harsh environment, we have explored a variety of potential measures aimed at lifting the business out of the red and ensuring stable profitability, in line with our Basic Management Policy for the Teijin Group. As a result of this process, we have resolved to implement the reforms outlined below.

2. Planned Reforms
(1) Create an Optimal Global Production and Sales
Configuration In light of the persistent, significant surfeit of products in the global polyester fibers market, we will step up efforts to increase the weight of overseas production with the aim of slashing production costs and increasing competitiveness in terms of product quality, thereby creating an optimal global production and sales configuration. To date, production and sales of polyester products have been the responsibility of the individual production facilities. We will now establish an integrated global production and sales system. Group companies in Thailand will serve as our main production base for raw yarn and raw staple fiber, while a network of other plants in the People's Republic of China (PRC) and Southeast Asia will also conduct subsequent processing and finishing. This will position us well to supply Japan, the principal market for these products; the PRC, an important growth market; and Europe and the Americas.


Must ReadView All

Textiles | On 22nd Jul 2017

Govt constitutes GST Feedback and Action Room

The Government of India has constituted a Feedback and Action Room...

Textiles | On 22nd Jul 2017

India’s cotton textile exports fell in FY17: Tamta

The overall export of cotton textiles from India declined in 2016-17...

Textiles | On 22nd Jul 2017

Stella McCartney, Bolt Threads partner for eco fashion

Fashion designer Stella McCartney has partnered with Bolt Threads for ...

Interviews View All

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

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

July 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X