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Teijin Fibers Limited has announced plans to withdraw from the operations of Teijin Group core textile yarns dyeing plant Teijin Nestex Limited, based in Ishikawa, Japan, and to dissolve and liquidate the company at the end of March 2010.
Teijin Nestex's predecessor Daishojiseren Ltd. joined the Teijin Group in 1951 and the company has functioned as the Group's core textile yarns dyeing plant for the past approximately 50 years. During this time, the increasing shift of textile manufacturing offshore by customers has pushed down order volumes for dyeing and prices for processing, which has significantly hampered the company's profitability.
Having concluded that despite numerous efforts to improve Teijin Nestex's operating results--including the integration of facilities and the implementation of stringent rationalization measures--structural issues will continue to impede the profitability of Teijin Nestex. Teijin Fibers has therefore taken the decision to dissolve and liquidate the company.
Schedule
| Full withdrawal from businesses: |
End of March 2010 |
Subsequent to dissolution
and liquidation: |
The company's textiles and apparel dyeing business will be shifted to dyeing facilities currently under contract to Teijin Fibers in Japan and to Nantong Teijin Co., Ltd. (Nantong, Jiangsu, PRC) overseas.
The company's automotive seat fabric dyeing business will be retained by transferring it to another Teijin Group company or by establishing a related alliance with a company outside the Teijin Group.
The possibility of shifting businesses other than dyeing (sales of bristles for calligraphy and paint brushes; window and door screens; and sewing) to other Teijin Group companies in Japan is currently under consideration. |
| Plant site: |
The site of the company's former plant in Kaga, Ishikawa, and related assets--with the exception of those than can be put to use effectively within the Teijin Group--will be disposed of. |
Profile of Teijin Nestex Limited
| Date of establishment: |
November 5, 2001 |
| Location: |
Ko 141, Ohama-machi, Nomi, Ishikawa, Japan |
| President: |
Takashi Honchu |
| Principal operations: |
Dyeing of polyester textiles and automotive seat fabrics |
| Paid-in capital: |
¥490 million (as of June 30, 2009) (wholly owned by Teijin Fibers Limited) |
| Annual net sales: |
¥2.65 billion (year ended March 31, 2009) |
| Number of employees: |
276 (as of March 31, 2009) |
| Historical highlights: |
1937 Founded as Daishoji Orimono Kumiai
1947 Reorganized and incorporated as Daishojiseren Ltd.
1951 Commences operations as a member of the Teijin Group
1972 Reestablished as Kita Nihon Senkou Ltd. (assumes operations of predecessor)
1986 Reestablished as Kitasen Limited (assumes operations of predecessor)
2001 Reestablished as Teijin Nestex Limited (assumes operations of predecessor) |
About Teijin
Teijin is a global technology-driven group operating in five main fields: synthetic fibers; films and plastics; pharmaceuticals and home health care; trading and retail; and IT and new products. Teijin Limited, the holding company for the Teijin Group, is listed on the Tokyo and Osaka stock exchanges. The group had consolidated sales of USD 9.4 billion (JPY 943.4 billion, USD 1=JPY 100) in fiscal 2008 and employs 19,453 people in 169 companies worldwide.
Teijin Fibers Limited is the Teijin Group's polyester fiber operation and conducts R&D, manufacturing and marketing of materials and textiles made from polymer and polyester fibers.
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
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Information in the press releases is current on the date of the announcement.
It is subject to change without prior notice.
