MRT decides to withdraw from Glore valcana artificial suede biz

12 Nov '08

2 min read

Mitsubishi Rayon Textile Co., Ltd., a member of the Mitsubishi Rayon Group, has decided to withdraw from the Glore valcana artificial suede business.

Schedule
December 2008 - Halt production
March 2009 - Discontinue sales

Mitsubishi Rayon Co Ltd is making steady progress with regard to the priority issues outlined in its 6th Medium-Term Management Plan (released in May 2008), namely the expansion of the core acrylic business, the fostering of next-generation core businesses, and the restructuring of unprofitable overseas Group affiliates.

Our Glore valcana business expanded operations in the areas of clothing and home furnishings. However, the profitability of the business rapidly deteriorated in response to the decline in the popularity of artificial suede and changes in fashions.

Mitsubishi Rayon responded with investments to renovate plant and equipment, and then transferred the operations to Mitsubishi Rayon Textile, making every effort to reestablish profitability. However, given the circumstances, and after an analysis of the current operating environment, we have concluded that it would be difficult to regain profitability. We have consequently made the decision to withdraw from this business.

Impact on Earnings
We anticipate the posting of an extraordinary loss of ¥900 million for the first half of fiscal 2008 on a consolidated basis.

Mitsubishi Rayon Textile Co Ltd

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