Home> News>News Release
| October 31, 2005 |
|
Teijin Fibers Limited Announces Joint Launch of a Company Manufacturing
and Selling Car Seat Fabric in China:
Responding to demand from the growing Chinese car market
|
|
TEIJIN FIBERS LIMITED
| |
Osaka, Japan, October 31, 2005, -Teijin Fibers Limited (Head Office: Chuo-ku, Osaka, President: Yasutoshi Noguchi, "TFJ") and Toyota Tsusho Corporation (Head Office: Nakamura-ku, Nagoya, President: Junzo Shimizu, "Toyota Tsusho") have made a decision to set up a joint venture for manufacturing and selling fabric for car seats in the city of Nantong, Jiangsu Province, China.
In China, demand for car seat fabric is very likely to rise following the entry of Japanese automakers into the country. Locally procured car seat fabric is required to have the same quality and to be under the same level of delivery date management as that for fabric produced in Japan. To build a structure to meet these needs, TFJ has determined to jointly launch a company engaged in the manufacture and sale of car seat fabrics with Toyota Tsusho, which boasts marketing strengths in this field.
The details are as follows.
1.Objective and background
| (1) |
In response to growing demand for automobiles in the Chinese market, Japanese automakers are energetically expanding production in China. In line with this trend, a number of car seat manufacturers are launching operations in China to meet demand for car seats. |
| (2) |
In addition, car seat manufacturers are expected to increase production capacity in China with a view to increasing exports of their products made in China back to Japan so that they can meet the demand from Japan-based car manufacturers for cost cutting. |
| (3) |
To meet delivery date requirements, fabric for car seats is in principle procured in the local market. Demand for car seat fabric is set to rise. |
| (4) |
Japanese car manufacturers hope that car seat fabric manufacturers will create a system in China for locally supplying fabric in with quality and texture as good as that produced in Japan. |
| (5) |
Under these market circumstances, TFJ and Toyota Tsusho have decided to set up a company to manufacture and sell car seat fabric to mainly supply specifically Japanese models that are unlikely to be available from local Chinese car seat fabric manufacturers. TFJ owns expertise in manufacturing of car seat fabric while Toyota Tsusho excels in marketing in China. |
2.Profile of the new company
| (1)Company name: |
Nantong Teijin Automotive Fabrics Finishing Co., Ltd. |
| (2)Location: |
19 Zhongyang Road, Nantong Economic & Technological Development Zone, Nantong, Jiangsu Province, China (on the premises of Nantong Teijin Co., Ltd.) |
| (3)Representative: |
Undecided |
| (4)Capital: |
50 million yuan (TFJ: 80%, Toyota Tsusho: 20%) |
| (5)Date of foundation: |
December 2005 (expected) |
| (6)Production facilities: |
A set of facilities for processing after dyeing |
| (7)Production capacity: |
180,000 m per month |
| (8)Total investment: |
60 million yuan |
| (9)Sales targets: |
80 million yuan in 2007 and 120 million yuan in 2009 |
3.Operating plan
| (1) |
Commercial production will commence in October 2006. |
| (2) |
To maintain quality, raw yarn will be procured from yarn manufacturers in the Teijin Group based in Japan, Thailand and Indonesia. |
| (3) |
The textured yarn will be supplied from Teijin Modern Yarn Nantong Co., Ltd., established on the premises of Nantong Teijin Co., Ltd. in November 2003. The new company will actively promote its unique car seat fabric products to the market in collaboration with Teijin Modern Yarn Nantong. |
| (4) |
The new company will enjoy support in production technology from other Teijin Group companies manufacturing car seat fabric, including Teijin Nestex Limited. |
| (5) |
Toyota Tsusho's Chinese subsidiaries will primarily be in charge of sales. They will sell car seat fabric to Japanese-owned automotive manufacturers. |
For further information, please contact:
Public Relations & Investor Relations Office
Teijin Limited
Tel: +81-3-3506-4055 / Fax: +81-3-3506-4150
E-mail: pr@teijin.co.jp
< Reference >
Corporate Profile of Teijin Fibers Limited
| 1. Date of foundation: |
|
January 25, 2002 |
| 2. Head office location: |
1-6-7 Minami Hommachi, Chuo-ku, Osaka |
| 3. Capital: |
12,025 million yen |
| 4. Representative: |
Yasutoshi Noguchi, Representative Director and President |
| 5. Number of employees: |
915 (as of the end of March 2005) |
| 6. Sales: |
126.1 billion yen (in the year ended March 31, 2005) |
| 7. Business description: |
As the core company of the Teijin Textile Fibers Business Group, the company engages in the research, development, manufacture and sale of polyester materials, polyester fibers for clothing and other polyester-centered textiles for clothing as well as related businesses. |
Corporate Profile of Toyota Tsusho Corporation
| 1. Date of foundation: |
|
July 1, 1948 |
| 2. Head office location: |
4-9-8 Meieki, Nakamura-ku, Nagoya |
| 3. Capital: |
26,748 million yen |
| 4. Representative: |
Junzo Shimizu, President |
| 5. Number of employees: |
1,963 (as of the end of March 2005) |
| 6. Sales: |
2,638.3 billion yen (in the year ended March 31, 2005) |
| 7. Business description: |
The company is a trading firm in the Toyota Group. Consisting of five different divisions of metals, machinery and electronics, automotive, energy and chemicals, and consumer goods and supplies, it has active operations. |
|
Information in the press releases is current on the date of the announcement.
It is subject to change without prior notice.
|
