Teijin and DuPont integrated their polyester film businesses in 2000 and have been operating the business on a global scale by establishing joint ventures in seven countries worldwide. However, the business environment has become increasingly severe primarily due to the sluggish demand driven by the slowdown of the Chinese economy as well as by the rise of new Chinese competitors, and a need for transformation of business structure has become imminent.
Structural reform has already been promoted that the domestic production site will be consolidated into the Utsunomiya facility by the end of September 2016 to focus on high value-added applications, but to achieve further growth by improving flexibility of management and speed of decision-making, it has hereby agreed to acquire the interests in the Japan joint venture, as well as the Indonesia joint venture.
Teijin and DuPont have agreed that Teijin will acquire DuPont Kabushiki Kaisha’s interests in Teijin DuPont Films Japan, effective immediately, and DuPont’s interests in Indonesia Teijin DuPont Films, effective after obtaining appropriate regulatory approvals.
For the two companies becoming wholly owned subsidiaries going forward, Teijin intends to increase profitability and competitiveness through use of high-performance materials other than polyester, combining and integrating other materials businesses of Teijin Group, and promoting new business development through external alliances under an accelerated decision-making process of Teijin Group management. The new company names for each of the Japan and Indonesian entities will be Teijin Film Solutions Limited and P.T. Indonesia Teijin Film Solutions.