Home / Knowledge / News / Textiles / MRC to withdraw from SILPALON acrylic filament yarn biz
MRC to withdraw from SILPALON acrylic filament yarn biz
16
Nov '09
Mitsubishi Rayon has decided to withdraw from the SILPALON acrylic filament yarn business operated by its subsidiary Mitsubishi Rayon Textile.

SILPALON, an acrylic filament yarn and the only one of its kind in the world, offers a rich luster similar to silk, as well as high color development. Taking these features into account, we pursued a differentiation strategy focusing on sweaters.

However, sales in Japan have decreased, with the market share for imported sweaters currently exceeding 95% in the domestic market. Moreover, falling textile prices are prompting manufacturers to switch to low-priced alternative fibers. Accordingly, sales volumes in our main export markets of South Korea and China have also continued to show a downward trend.

In addition, since the onset of the global recession last autumn, department store sales have remained at low levels, and the sweater market has contracted dramatically. Another factor which has had an adverse effect on overall profitability is the higher production costs resulting from surging materials prices in recent years, and reductions in production volume.

Given these circumstances, an assessment of the future outlook for this business suggests that business conditions will become increasingly harsh in the future, and that a recovery of profitability is unlikely.

Future schedule
March 31, 2010 Production to be halted
June 30, 2010 Sales activities to be discontinued

Impact on earnings performance
On a consolidated basis, we estimate the posting of an extraordinary loss of ¥360 million due to the withdrawal from this business in the second half of fiscal 2009.

Mitsubishi Rayon Co Ltd


Must ReadView All

Union Minister for finance Arun Jaitley chairing the 25th GST Council meeting, flanked by minister of state for finance Shiv Pratap Shukla (right) and finance secretary Dr Hasmukh Adhia. Courtesy: PIB

Textiles | On 20th Jan 2018

GST rate on velvet fabric reduced to 5%

The 25th Goods and Services Tax (GST) Council meeting, held under the ...

RIL petrochemicals’ revenue grows 47.6% in Q3 FY18

Textiles | On 20th Jan 2018

RIL petrochemicals’ revenue grows 47.6% in Q3 FY18

The revenue from the petrochemicals segment at Reliance Industries...

Courtesy: Cotton USA

Textiles | On 20th Jan 2018

US cotton bodies pledge to support CCI activities

Ten US cotton organisations have pledged industry contributions in...

Interviews View All

Representatives
Textile & apparel industry

GST is a complicated and lengthy process

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Eric Scholler
Groz-Beckert

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

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

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 2018

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

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

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

Yes No

Active Poll

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

Yes
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

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

Yes No

Active Poll

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

Yes
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

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

Active Poll

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

Yes
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


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