Tokyo-based Teijin Ltd. has announced it will transfer the 97.9-percent stake in its Indonesian
polyester fiber subsidiary, P.T. Teijin Indonesia Fiber Tbk (TIFICO), to four companies — P.T.
Prospect Motor, P.T. Hermawan Sentral Investama, P.T. Wiratama Karya Sejati and Pioneer Atrium
Holding Ltd. — each of which has leading Indonesian textile manufacturers within its groups,
Teijin reports. The transfer, part of the restructuring of its Polyester Fibers business, will
allow TIFICO to strengthen its vertically integrated business and build relationships with leading
Indonesian textile companies. According to Teijin, TIFICO’s polyester fiber operations have been
struggling since 2000 as a consequence of Chinese competition.
Research and development for Teijin’s Polyester Fibers business will be based in Japan, with
production for filament yarn and staple fibers based mainly in Thailand. TIFICO will continue to
supply Teijin with high-quality commodity products. Teijin is working to globally integrate its
production, targeting primarily Japanese, Chinese, European and American markets. P.T. Teijin
DuPont Films, which is co-located with TIFICO, will continue operations and will receive raw
materials from TIFICO.
In other news related to the restructuring, Teijin will split the current polyester raw
materials and polymerization business and power supply business of Polyester Fibers business
subsidiary Teijin Fibers Ltd. along with the power supply business of Aramid Fibers business
subsidiary Teijin Techno Products Ltd. and will absorb these businesses into the holding company as
of April 1, 2010. Polyester Fibers has been focusing on expanding overseas production in order to
decrease production costs and increase competitiveness. These actions will reduce the amount of raw
materials produced and power consumed by Teijin Fibers.
In addition, common group functions of the two subsidiaries will be transformed to Teijin in
an effort to improve management efficiency.
December 29, 2009