>>
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

Pic: cf.kizlarsoruyor.com

Apparel/Garments | On 6th Dec 2021

All Turkish goods to be labelled ‘Made in Turkiye’

All goods produced in Turkey, including clothing for exports, will be ...

Pic: Jaroslaw Baczewski | Dreamstime.com

Textiles | On 6th Dec 2021

Global cargo demand up by 9.4% in Oct 2021 over Oct 2019: IATA

Global demand was up by 9.4 per cent in October 2021 compared to the...

Pic: Phanthit Malisuwan | Dreamstime.com

Textiles | On 6th Dec 2021

NCTO offers key policy recommendations to support US industry

In a written testimony before the US House Ways and Means Trade...

Interviews View All

India-EU Summit, Representatives

India-EU Summit
Representatives

India-EU FTA will provide EU with better access to a huge & rapidly...

Textile Industry, Head honchos

Textile Industry
Head honchos

Quality & affordability to affect market acceptability of new fibres

Textile Industry, Head honchos

Textile Industry
Head honchos

Always best to produce under own supervision

Vikash & Vishal Pacheriwal,

Vikash & Vishal Pacheriwal

Launched in 2018, Raisin is a contemporary fusion fashion brand that aims...

G Tumbarello,

G Tumbarello

Lilly + Sid is an award-winning organic children's clothing company from...

Klaus Bergmann,

Klaus Bergmann

German company Erbatech GmbH develops, designs and manufactures high end...

Madison Maxey, Loomia

Madison Maxey
Loomia

Loomia designs and manufactures soft circuit systems that can be produced...

Ingo Soller, TWE Group

Ingo Soller
TWE Group

The TWE Group is one of the leading global players in the nonwovens...

Michael Jaenecke, Messe Frankfurt

Michael Jaenecke
Messe Frankfurt

From May 14 to 17, international exhibitors will present the entire...

Anjali Bhaskar, Samatvam

Anjali Bhaskar
Samatvam

Samatvam, a womenswear brand that blends age-old craftsmanship with modern ...

Abhishek Agarwal, Purple Style Labs

Abhishek Agarwal
Purple Style Labs

Late Indian fashion designer Wendell Rodricks, is known for his...

Sarah Denise Cordery, Sarah Denise Studio

Sarah Denise Cordery
Sarah Denise Studio

Manchester, England-based Sarah Denise Studio provides relevant fashion...

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

Leave your Comments


December 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search