Home / Knowledge / News / Textiles / Teijin to sell entire stake in TEIJIN INDONESIA FIBER Tbk
Teijin to sell entire stake in TEIJIN INDONESIA FIBER Tbk
22
Dec '09
Teijin Limited (“Teijin”) announces that on December 18, 2009, its Board of Directors resolved to transfer its entire stake in “P.T. TEIJIN INDONESIA FIBER Tbk.” (“TIFICO”), Teijin's consolidated subsidiary (specified subsidiary) listed on the Jakarta Stock Exchange of the Republic of Indonesia, to four companies that have leading Indonesian textile manufacturers within their respective groups.

TIFICO was established as a polyester fiber manufacturing company in Indonesia in October 1973 and commenced operations in July 1976. During its over thirty-year history, TIFICO has been one of the important bases for Teijin's polyester fibers business.

To date, Teijin has implemented a variety of measures such as transferring its fiber production technology, developing new markets as well as training personnel; however, TIFICO's polyester fibers operations have come upon hard times amid intensified competition in the industry, especially from Chinese competitors since around 2000. Under the circumstances, Teijin endeavored to revitalize TIFICO with measures such as transferring its production of semi-differentiated products to TIFICO, expanding TIFICO's exports to Japan and implementing cost reduction initiatives such as energy conversion. Although these initiatives improved TIFICO's financial performance, they achieved a level of profit lower than expected.

On August 3, 2009, Teijin announced restructuring of its polyester fibers business and has since executed structural reforms with a primary focus on “creation of an optimal global production and sales configuration,” “decisive reforms in loss-making businesses,” and “creation of new business models that will facilitate stable profitability.”

2. Details
In line with the policy of the structural reforms, Teijin concludes agreements on December 18 to transfer its entire stake in TIFICO to four companies, namely P.T. PROSPECT MOTOR, P.T. Hermawan Sentral Investama, P.T. Wiratama Karya Sejati and Pioneer Atrium Holding Limited, each of which has leading Indonesian textile manufacturers within its respective group. Teijin believes this transaction provides an optimal outcome for the Indonesian fiber industry as well as for TIFICO's customers and employees.

This transaction will enable TIFICO to reinforce its vertically integrated business of manufacturing polyester fiber, from spinning to weaving and dyeing, forming strong alliances with leading Indonesian textile groups.

With these procedures in place, Teijin's polyester fibers business will have an R&D base in Japan and a main production base for filament yarn and staple fibers in Thailand while continuing to receive supplies of high-quality commodity products from TIFICO. With its network of other plants for subsequent processing and finishing in Japan, China and Southeast Asian countries, Teijin will pursue globally integrated production and marketing targeting its principal markets including Japan, China, Europe and the Americas.


Must ReadView All

Textiles | On 25th Sep 2017

SVP Group to build $300 mn spinning plant in Sohar

ShriVallabh Pittie Industries (SVP) Group, a diversified yarn...

Apparel/Garments | On 25th Sep 2017

Vietnam textile sector to gain if EU FTA gets ratified

Experts feel the Vietnam-European Union (EU) free trade agreement...

Courtesy: Business Wire

Textiles | On 25th Sep 2017

Invista to use ADN technology at joint project in France

Invista, a leading producer of chemical intermediates, polymers, and...

Interviews View All

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Representatives
Textile & apparel industry

GST is a complicated and lengthy process

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Kevin Nelson
TissueGen

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

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Suresh Patel
Sidwin Fabric

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

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

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

September 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

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

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
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

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
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

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
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


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