Teijin, Asahi Kasei to Integrate Textile Units

Tokyo, Dec. 2 (Jiji Press)–Major Japanese chemical makers Teijin Ltd. and Asahi Kasei Corp. said Tuesday that they will integrate their respective textile trading subsidiaries in 2026. Under the integration plan, Teijin Frontier Co., based in the western Japanese city of Osaka, is set to absorb Asahi Kasei Advance Corp., based in Tokyo, on Oct. 1 next year. Teijin will hold an 80 pct stake in the integrated company, while the rest will be held by Asahi Kasei. “There is a growing need to expand our business fields and accelerate global operations,” Teijin Frontier President Yasunari Hirata said at a press conference in Tokyo. He unveiled plans to increase the combined consolidated sales between his company and Asahi Kasei Advance from about 440 billion yen at present to 500 billion yen by around 2030. Hirata also said that he is not considering extreme streamlining of personnel and business bases. Asahi Kasei Advance President Keiji Kasumi said that the integration will help broaden the scope of operations. Teijin Frontier aims to reinforce its textile business, while Asahi Kasei Advance plans structural reforms across the whole group. The textile sector, once Japan’s core industry, has been seeing realignment moves at a time when global competition is intensifying and the domestic apparel market is shrinking. Unitika Ltd. announced its withdrawal from its founding textile business last year, while Mitsubishi Chemical Group Corp. exited the clothing sector in March this year. END [Copyright The Jiji Press, Ltd.]