Asahi Kasei Corporation will establish a subsidiary in the Hangzhou Economic and Technological Development Zone in Hangzhou, Zhejiang, China for the production and sale of Roica* spandex as a key element in the global development of Roica operations, an important segment of competitive superiority in Asahi Kasei’s fibers and textiles internal company business unit.
The development and growth of Roica operations is being advanced with highly functional and ultrafine filaments produced at Asahi Kasei’s Roica plant in Moriyama, Japan, and commodity filaments produced locally by economic region. The plant in China will be the second overseas Roica production site following the 2000 start-up of Formosa Asahi Spandex Co., Ltd., a joint venture with Formosa Plastics Corporation with production capacity for 5000 tons/year of Roica and 10,000 tons/year PTMG** in Taiwan.
In October 1995, Asahi Kasei established Hangzhou Asahikasei Textiles Co., Ltd. for the production and sale of warp-knit Roica fabrics. The scale of production has grown steadily, and is now approaching a level which makes it feasible to establish a filament production plant for its supply. In addition, robust growth in demand for spandex in China is forecast to continue, particularly in Zhejiang and Shanghai. The establishment of the Roica filament plant in China, the world-leader in fiber production, will meet the growing needs of both Hangzhou Asahikasei Textiles and the Chinese market in general. The new production base will operate as a 100% subsidiary of Asahi Kasei Corporation, and will be located adjacent to Hangzhou Asahikasei Textiles in the Hangzhou Economic and Technological Development Zone. The process for the legal establishment of the new company is currently in progress, following application to the Chinese authorities.
* Roica is a registered trademark of Asahi Kasei Corporation.
** Polytetramethylene ether glycol, the main feedstock for spandex filament.
| Corporate profile of the new subsidiary |
| Name: |
Hangzhou Asahikasei Spandex Co., Ltd. |
| Site: |
Adjacent to Hangzhou Asahikasei Textiles Co., Ltd. in the Hangzhou Economic and Technological Development Zone in Hangzhou, Zhejiang, China |
| Paid-in capital: |
US$10 million (100% owned by Asahi Kasei) |
| Production capacity: |
5000 tons/year Roica filament (1300 tons/year in Phase I) |
| Total investment: |
US$25 million in Phase I |
| Commercial start-up: |
April 2003 |
| Corporate profile of Hangzhou Asahikasei Spandex Co., Ltd. |
| Establishment: |
October 1995 |
| Paid-in capital: |
US$9.4 million |
| Scope of operation: |
Production and sale of warp-knit Roica fabrics |
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