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July 3, 2009 |
Asahi Kasei Fibers Corp.
Teijin Fibers Ltd.
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Dissolution of the joint venture Solotex Corporation
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Asahi Kasei Fibers and Teijin Fibers will dissolve Solotex Corp., their joint venture for polytrimethylene terephthalate (PTT) fiber operations, at the end of March 2010.
PTT was commercialized as a molding material in the late 1990s. Asahi Kasei Fibers began development of PTT fiber in 1996, with production and sale beginning in 1999. Teijin Fibers began developing PTT fiber in 2000 after licensing spinning technology from DuPont.
Solotex Corp. was established in May 2002 as a fifty-fifty joint venture combining the PTT fiber operations of Asahi Kasei Fibers and Teijin Fibers. Development of the PTT fiber business has advanced with sales performed by Solotex Corp., and production on consignment to its parent companies.
With declines in feedstock prices and other production costs failing to materialize as anticipated, however, market development has centered on applications in high-priced product fields. As a result, the market scale initially envisioned could not be obtained.
Despite every effort to improve the operating structure, it became clear that prospects for stable earnings were not forthcoming, particularly with the substantial impact of the global economic slowdown which began last year. The decision was thus made to terminate the joint-venture agreement and dissolve Solotex Corp. |
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| Schedule |
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| Sales termination: |
End of December 2009 |
| Joint venture dissolution: |
End of March 2010 |
| Product supply: |
To the extent possible, product stocks will be raised prior to termination of production in accordance with customer requests |
| Following dissolution: |
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- Asahi Kasei Fibers will perform neither production nor sale of PTT fiber
- Teijin Fibers is studying the possibility for succession with an independent PTT fiber business
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| Effect on financial performance |
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This dissolution will have no significant effect on the financial performance of either Asahi Kasei Fibers or Teijin Fibers. |
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| Profile of Solotex Corporation |
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| Location: |
3-3-23 Nakanoshima, Kita-ku, Osaka, Japan |
| President: |
Eiji Sato |
| Establishment: |
May 21, 2002 |
| Paid-in capital: |
¥250 million (50% by Asahi Kasei Fibers, 50% by Teijin Fibers) |
| Net sales: |
¥960 million (year ended March 31, 2009) |
| Business line: |
Production & sale of PTT fiber |
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