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Teijin realigns polyester films JV with DuPont

19 Jan '15

2 min read

Teijin Limited with its joint venture partner DuPont, will realign the production facilities of Teijin DuPont Films Japan Limited (TDFJ), which is into production of polyester films.

“This move is in line with the program of restructuring initiatives outlined in Teijin’s revised medium-term management plan, which was announced November 5, 2014,” Teijin said.

TDFJ currently produces polyester films at its Gifu and Utsunomiya factories. TDFJ has resolved to integrate these activities at the latter facility.

To date, TDFJ has implemented numerous measures to reduce costs, including discontinuing production at its Ibaraki Factory, to make its polyester films business more competitive.

Despite these efforts, increasingly intense rivalry in global markets prodded the company of the need to further integrate its production facilities to enhance production efficiency and ensure profitability.

TDFJ will scale back production at its Gifu Factory, with operations at the facility scheduled to conclude at the end of September 2016.

The company will undertake this by transferring production of items from the Gifu Factory to the Utsunomiya Factory or an overseas facility as well as by promoting the use of alternative products.

Teijin said certain unprofitable products will be discontinued and the Gifu Factory will continue to function as an R&D facility.

The Gifu factory has an annual production capacity of 30,000 tons of polyester films and employs around 340 employees, around 240 of which are involved in production.

As much as possible, Teijin added, it intends to absorb Gifu factory employees involved in production within the Teijin Group to fill vacancies created by the retirement of employees at other plants.

Having already reported impairment losses on the production equipment of the Gifu Factory, Teijin expects any additional negative impact of this move on its full-term consolidated operating results to be minimal.

The positive impact of this move on Teijin’s income performance is reflected in the targets of its revised medium-term management plan. (AR)

Fibre2fashion News Desk - India