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| Asahi Kasei Corporation and Teijin Limited have today concluded an agreement to establish a joint venture for polytrimethylene terephthalate (PTT) fiber operations. The new joint venture, tentatively named Solotex Corporation, will be established in May 2002 with ¥250 million paid-in capital, and marketing operation is scheduled to commence on June 1, 2002. All PTT fiber operations of the parent companies, including marketing, production, and R&D, are to be transferred to the joint venture. Building on the combined results achieved by the PTT fiber operations of the two parents, the new company will be uniquely positioned to heighten and advance R&D and market development related to PTT fibers. In addition to production and sale of PTT fibers, it is envisioned that operation may in future include production and sale of PTT polymer for fiber production. With characteristics which set it apart from ordinary commodity synthetics such as polyester and nylon, PTT fiber is recognized throughout the world as an important new material which affords great possibilities. Features include stretch and recovery, softness, and ease of dyeability not found in ordinary synthetics. The unique combination of features enables the creation of apparel with novel characteristics. For instance, low-temperature dyeing allows the natural feel of wool and cotton to remain intact, so blends of PTT with natural fibers can be created with an unprecedented combination of soft touch with stretch and recovery. The wealth of new possibilities engendered by PTT fiber is not limited to the field of apparel, but extends to a wide range of industrial applications. Because of the attractive potential of PTT fiber, several major synthetic fiber manufacturers throughout the world have begun working toward its commercialization through development of applications and markets. Asahi Kasei was among the world's first to initiate a program of commercialization based on advanced R&D and market development. Teijin is a leader in R&D and market development for PTT staple fiber. The new joint venture will not only enjoy the results of these developments, but, by utilizing production facilities of the parent companies both in Japan and overseas, will attain highly competitive production in terms of both cost and technology. This comprehensive competitive strength will enable the joint venture to rapidly advance market development on a global scale. Market development will also be accelerated through the use of PTT fiber by the textile operations of the parent companies. Upon commencement of marketing operations on June 1, the joint venture will focus efforts on market development while consigning production to the parent companies. Thereafter, the joint venture will obtain its own production and R&D facilities, and is targeted to grow into a global leader in the field of PTT fiber. Profile of the new joint venture
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It is subject to change without prior notice.
