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Teijin to create optimal global production of polyester fibers biz

03 Aug '09
5 min read

Specifically, we will terminate all operations related to polyester filaments and polyester staple fibers, with the exception of R&D, at the Matsuyama Plant, in Ehime, Japan, where Teijin's polyester fibers business was first established and where Tetoron(r) polyester fibers were launched in 1958. We will shift production of polyester filaments and staple fibers to our Group companies in Thailand with the aim of strengthening and expanding this business. As a result, the Matsuyama Plant will function as an R&D base, while the Tokuyama and Iwakuni plants-both in Yamaguchi, Japan-will focus on high-value-added polyester fibers products.

Specific measures planned for different areas are as follows:
Polyester filaments
(i) We will terminate polyester filament production at the Matsuyama Plant, the sole facility in Japan currently producing polyester filaments, and shift all polyester filament production to Thailand by the end of fiscal 2010.
(ii) We will also take steps to enhance the production technologies and development capabilities of Group companies in Thailand, establishing our Thai base as our core production facility for polyester filaments.

Polyester staple fibers
(i) By the end of fiscal 2010, domestic polyester staple fiber production will be moved from the Matsuyama Plant and will be centralized at the Tokuyama Plant.
(ii) Overseas, we will strive to enhance production and optimize the product portfolio of Group companies in Thailand.

Polyester fibers for industrial applications
(i) For polyester fibers for industrial applications, currently produced at the Iwakuni Plant, by fiscal 2011 we will scale back production of loss-making products and focus on products that maximize our particular strengths. We will also work with Group companies in Thailand to optimize our product mix in Japan and overseas.

Polymerization of raw materials for polyester fibers
(i) With the aim of ensuring competitiveness in terms of raw materials costs, we will discontinue polymerization of raw materials for polyester fibers in Japan and shift this function to Group companies in Thailand.
(ii) While we will continue to promote the recycling of used polyester products into new raw materials as a mainstay business, we will discontinue recycling at the Tokuyama Plant in fiscal 2009 and focus on Fiber-to-Fiber recycling at the Matsuyama Plant.

R&D
(i) We will position the Matsuyama Plant as the principal R&D facility for cutting-edge polyester fibers and will continue to conduct advanced materials development.
(ii) We will ensure the ability of Group companies in Thailand to respond to market needs by promoting the swift development of new polyester fibers.
(iii) To accelerate R&D efforts, we will organize customer- and market-specific teams integrating sales and development personnel. This will enable us to promote the timely development of new products.

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Teijin Limited

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