Teijin to Implement Tetoron® Global Strategy Plan to Reinforce its Clothing-related Polyester Fiber Business

13-Jun-2001

Teijin Limited, a leading producer of synthetic fibers headquartered in Osaka, Japan, said today it would implement a radical reform of its business organization aimed at ensuring that clothing-related polyester fiber operations remain a core Teijin business in the 21st century.

Teijin has named its plan the 'TetoronR Global Strategy Plan' or TGS Plan after the popular synthetic fiber it first produced in 1958 and upon which Teijin's leadership in numerous fiber, textiles, films and plastics fields today is based.

The focus of the TGS plan is Teijin's clothing-related polyester fibers operation. Beginning this fiscal year, the company will adjust its sales strategy for the sector to strengthen its global operations, streamline domestic production facilities and expand production bases outside Japan, and transfer Teijin's clothing-related polyester fiber business to a separate company. The reform will be introduced in stages aiming for full implementation by fiscal 2003 ending March 31, 2004.

In order to realize truly global profitable growth on a consolidated basis, Teijin is aiming to strengthen operations worldwide through fully utilizing its current manufacturing and sales bases. In this way the company intends to maintain and increase market share in Japan and overseas.

Among the measures to be implemented will be a reduction in fiber production in Japan, where high costs are eroding Teijin's profitability, and an increase in production at the company's more cost-effective overseas bases. The division of Teijin's domestic clothing-related polyester fiber business into a separate company is also planned, together with the implementation of structural reforms through self-administration.

"By taking these steps, I am confident that we can achieve further growth and build a stable business constitution that will be unaffected by changes in market circumstances," says Shosaku Yasui, President and CEO of Teijin Limited.

Teijin firmly believes that the implementation of the TGS Plan will greatly boost its position as a global manufacturer of clothing-related polyester fibers through coordinated development of fibers and textiles. Its reformed polyester fiber business aims to achieve an ROA (operating income on assets) of more than 7% and a consolidated operating income in excess of ¥16 billion in fiscal 2003.

https://www.chemeurope.com/en/news/3493/teijin-to-implement-tetoron-global-strategy-plan-to-reinforce-its-clothing-related-polyester-fiber-business.html