Polyester accounts for 80% of all synthetic fiber products and 40% of all fiber products, so polyester recycling can greatly reduce environmental burden.
Foundation of Teikoku Rayon Comapny Limited in 1918- the very first rayon plant established in Japan laid the corner stone for today’s giant Teijin Group of companies. Over these 93 years of existence, the group now marks its presence across the globe with 72 subsidiaries located in Japan, and 78 in regions like-North America, Asia, Europe. The group employs over 17,500 people from different nations and races.
Teijin’s businesses-share breakdown (FY2010) includes materials-related segments, namely, High-Performance Fibers (Aramid Fibers Business Group, Carbon Fibers Business Group), Polyester Fibers Business, and Films and Plastics (Plastics Business Group and Films Business Group) representing 52% of Group’s consolidated net sales. The remaining 48% is by the Pharmaceuticals and Home Health Care segment (Medical and Pharmaceuticals Business Group) and the Trading and Retail segment (Fiber Products Marketing Business Group) of which the Medical and Pharmaceuticals Business Group is responsible for 17%.
The Polyester Fiber Business Group deals into Polyester Fibers/Textiles; Polyethylene Naphthalate (PEN) Fibers, and Polyester Monofilaments as principal products. It manufactures and sells the polyester fiber TETORON and polyester monofilament. These products are used mainly in apparel (men's and women’s apparel), interior decorating (curtains and other items), automotive interiors (seats) and tyre codes and material for paper manufacture.
Mr Toshihide Fukushima is the general manager of Teijin’s Polyester Fibers Business Group and the president & CEO of Teijin Fibers Limited. Since he started his career at Teijin in 1975, he has been engaged in polyester fiber and apparel businesses in Japan, Italy and China.
Mr Toshihide Fukushima, sharing a word with Ms Madhu Soni, Sr Editor & Correspondent- Face2Face, provides a deal of information from his area of expertise- Polyester sector worldwide.
Face2face extends a warm welcome, Mr Fukushima! Teijin Group is a giant with presence in multiple industries. Shall we begin this discourse with a note from you on the significance that polyester fibers make to Teijin’s textile presence, as well as Teijn’s Fibers growth strategies?
Since we first began the production of Tetoron polyester fiber in Japan in 1958, Teijin has expanded the use of polyester fibers and textiles in applications ranging from apparel to industrial materials. Over the decades, the polyester fibers business has played an important role in propelling business expansion of the Teijin group.
Looking toward the future, we are aiming to expand our polyester fibers business for a stronger presence in the global market. Now we are focused on the establishment of competitive global supply chain and the development of promising applications and markets.
On that note, kindly also let us know the key trends that are likely to scale up your industry prospects. Which all regions would see upswing in the sector?
We see great potential in environment friendly products in the global market. Capitalizing on our unique polyester technologies and expertise, we will expand Eco business, with the focus more on emerging markets such as China and India.
Can you also apprise us with rationale behind recent global expansion of Teijin's recycling initiatives for polyester?
In response to increasing awareness of environmental issues, in 2002, Teijin Fibers developed ECO CIRCLE, the world's first closed-loop recycling system for polyester based on our proprietary chemical recycling technology.
Teijin’s chemical recycling technology enables used polyester to be converted into raw material with purity comparable to materials derived directly from petroleum, with no qualitative deterioration. Repeated recycling enables the conservation of oil resources and the reduction of waste volume.
ECO CIRCLE forms solid partnerships between Teijin and participating companies that are willing to involve end-users in recycling activities. While the original focus of ECO CIRCLE was on recycling company / school uniforms and interior materials in Japan, the initiative expanded through the collaboration in 2005 with Patagonia Inc., a leading U.S. outdoor gear manufacturer. China’s largest sports apparel Li Ning became our partner in 2009, which has been drawing increasing attention to ECO CIRCLE in Asia.
We are currently working with around 150 companies worldwide including makers of school/company uniforms, fashion/sports apparel and interior goods. These companies, which share our commitment to promoting progressive environmental activities through the development and manufacture of recyclable products, collect products at the end of their useful lives from end-users. The products are then sent to Teijin Fibers’ plant in Matsuyama Prefecture, Japan for recycling.
We are now aiming to expand the ECO CIRCLE system beyond the conventional recycling of recovered apparel products to incorporate innovative new recycling models for the entire polyester chain, which includes industrial polyester products.
Conventionally, 90% of all used clothes are treated as waste and are burnt or disposed off in landfills. Polyester accounts for 80% of all synthetic fiber products and 40% of all fiber products, so we believe polyester recycling can greatly reduce this environmental burden.
True. We appreciate the efforts. <br></br>Post Lehman Brothers shock, Teijin was marked with a change in its global production (polyester) system. How was that a stitch in time move for your polyester business?
With the aim of optimizing our global production system, we have relocated the core production site of polyester filament yarn from Japan to group companies in Thailand. These measures have enabled us to establish an optimal global production configuration encompassing from raw materials to fibers and textiles, which is now our significant competitive advantage in terms of both, costs and product quality.
Now, talking margins; there has been volatility in the feedstock prices that erodes the profitability for companies. How has been the performance of Teijin in the recent months in context to this point particularly?
In line with our basic policy, we generally shift polyester raw material cost increases to customers; however, the recent volatility in the feedstock prices has been making it difficult for us to do so.
In recent past, Japan has been through catastrophe of earthquake and nuclear crisis. Fibre2fashion Team expresses its deep rue over loss thereby to humanity, and would like to know if there remain any more impacts, post this disaster, still to follow on trade and commerce in the sector?
Teijin’s polyester fibers business was not directly affected by the disaster, as our major production sites are located outside the country. We expect a slight decline in automotive related businesses such as car seats, but in other areas such as apparel, the drop in demand has been limited.
How would you best describe your company’s R&D strategies for setting up new businesses?
We closely collaborate with key customers in each market in order to develop promptly the new products and applications.
In agreement to your previous note on Sustainable-Environment Friendly products driving businesses these days, Fibre2fashion is also, shouldering the noble cause, shortly to launch a special Online & Print Campaign on Sustainability, and having said that, ending the talk here, we would like to know your business group's measures on this front?
In the polyester fibers business, we aim to expand our eco business while reducing environmental loads by pursuing “hybrid strategies” that leverage special expertise in plant-derived materials, recycling, functional materials and manufacturing processes.
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