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Dissolution and liquidation of Teijin Monofilament US Inc
03 Aug '09
2 min read
Teijin Limited has announced plans to dissolve Teijin Group monofilament production and sales subsidiary Teijin Monofilament U.S. Inc., based in South Carolina, the United States, and to liquidate the company at the end of December 2009. Monofilaments are single filaments of synthetic fiber of a comparatively high denier, used in the manufacture of paper and for general industrial materials.
In December 2000 Teijin Limited purchased the U.S. and German monofilament businesses of Delaware-based Johns Manville Corporation of the United States. In 2001, the businesses were merged with existing subsidiary Teijin Monofilament Limited, which is headquartered in Tokyo, Japan, creating a three-pronged network of production bases in Japan, the United States and Europe and facilitating the global expansion of this business.
In subsequent years, owing to changing conditions in the market for paper machine clothing (PMC), the principal application for monofilaments-including the shift of customers' production bases to Central and South America, as well as the attenuation of the North American market-securing profitability for the company became increasingly difficult.
In response, Teijin Monofilament U.S. sought to cultivate applications in areas other than PMC, such as industrial materials. However, as these were in sectors dominated by products with low sales prices, this effort did not result in increased profitability. Since fiscal 2005, profitability has continued to deteriorate, owing to soaring prices for raw materials. The company's performance has further been hampered by the recent global economic downturn. Having concluded that a future return to stable profitability is unlikely, Teijin took the decision to dissolve and liquidate the company.
Schedule
Cessation of sales: End of October 2009
Liquidation: End of December 2009
Supply of products to customers: The company will continue producing sufficient quantities to fill orders until the end of October 2009.
Subsequent to liquidation: Depending on orders, product supplies will continue, led by Teijin Monofilament Germany GmbH.
In December 2000 Teijin Limited purchased the U.S. and German monofilament businesses of Delaware-based Johns Manville Corporation of the United States. In 2001, the businesses were merged with existing subsidiary Teijin Monofilament Limited, which is headquartered in Tokyo, Japan, creating a three-pronged network of production bases in Japan, the United States and Europe and facilitating the global expansion of this business.
In subsequent years, owing to changing conditions in the market for paper machine clothing (PMC), the principal application for monofilaments-including the shift of customers' production bases to Central and South America, as well as the attenuation of the North American market-securing profitability for the company became increasingly difficult.
In response, Teijin Monofilament U.S. sought to cultivate applications in areas other than PMC, such as industrial materials. However, as these were in sectors dominated by products with low sales prices, this effort did not result in increased profitability. Since fiscal 2005, profitability has continued to deteriorate, owing to soaring prices for raw materials. The company's performance has further been hampered by the recent global economic downturn. Having concluded that a future return to stable profitability is unlikely, Teijin took the decision to dissolve and liquidate the company.
Schedule
Cessation of sales: End of October 2009
Liquidation: End of December 2009
Supply of products to customers: The company will continue producing sufficient quantities to fill orders until the end of October 2009.
Subsequent to liquidation: Depending on orders, product supplies will continue, led by Teijin Monofilament Germany GmbH.
Teijin Limited
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