Dissolution & liquidation of Teijin Nestex yarns dyeing plant
Teijin Fibers Limited has announced plans to withdraw from the operations of Teijin Group core textile yarns dyeing plant Teijin Nestex Limited, based in Ishikawa, Japan, and to dissolve and liquidate the company at the end of March 2010.
Teijin Nestex's predecessor Daishojiseren Ltd. joined the Teijin Group in 1951 and the company has functioned as the Group's core textile yarns dyeing plant for the past approximately 50 years. During this time, the increasing shift of textile manufacturing offshore by customers has pushed down order volumes for dyeing and prices for processing, which has significantly hampered the company's profitability.
Having concluded that despite numerous efforts to improve Teijin Nestex's operating results—including the integration of facilities and the implementation of stringent rationalization measures—structural issues will continue to impede the profitability of Teijin Nestex. Teijin Fibers has therefore taken the decision to dissolve and liquidate the company.
Full withdrawal from businesses: End of March 2010
Subsequent to dissolution and liquidation: The company's textiles and apparel dyeing business will be shifted to dyeing facilities currently under contract to Teijin Fibers in Japan and to Nantong Teijin Co., Ltd. (Nantong, Jiangsu, PRC) overseas.
The company's automotive seat fabric dyeing business will be retained by transferring it to another Teijin Group company or by establishing a related alliance with a company outside the Teijin Group.
The possibility of shifting businesses other than dyeing (sales of bristles for calligraphy and paint brushes; window and door screens; and sewing) to other Teijin Group companies in Japan is currently under consideration.
Plant site: The site of the company's former plant in Kaga, Ishikawa, and related assets—with the exception of those than can be put to use effectively within the Teijin Group—will be disposed of.
Profile of Teijin Nestex Limited
Date of establishment: November 5, 2001
Location: Ko 141, Ohama-machi, Nomi, Ishikawa, Japan
President: Takashi Honchu
Principal operations: Dyeing of polyester textiles and automotive seat fabrics
Paid-in capital: ¥490 million (as of June 30, 2009) (wholly owned by Teijin Fibers Limited)
Annual net sales: ¥2.65 billion (year ended March 31, 2009)
Number of employees: 276 (as of March 31, 2009)
Historical highlights: 1937 Founded as Daishoji Orimono Kumiai
1947 Reorganized and incorporated as Daishojiseren Ltd.
1951 Commences operations as a member of the Teijin Group
1972 Reestablished as Kita Nihon Senkou Ltd. (assumes operations of predecessor)
1986 Reestablished as Kitasen Limited (assumes operations of predecessor)
2001 Reestablished as Teijin Nestex Limited (assumes operations of predecessor)