Teijin takes over jv film business in Japan and Indonesia from DuPont

Teijin Limited is acquiring the interests owned by DuPont in the film business joint ventures in Japan and Indonesia. Teijin and DuPont have integrated polyester film business in 2000 and have been operating the business on a global scale by establishing joint ventures in seven countries worldwide. However, 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 domestic production site will be consolidated into Utsunomiya factory by the end of September 2016 in order to focus on the 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 will acquire DuPont Kabushiki Kaisha’s interests (40%) in Teijin DuPont Films Japan, effective immediately, and DuPont’s 49.9% interest 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 utilisation of high-performance materials other than polyester, combining and integrating materials other 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

Teijin says it expects any impact of this move on its full-term consolidated operating results to be minimal.