Teijin DuPont to shut down one polyester film plant

Teijin Limited has resolved, in agreement with joint venture partner DuPont, to realign the production facilities of subsidiary Teijin DuPont Films Japan. This move is in line with the programme of restructuring initiatives outlined in Teijin’s revised medium-term management plan, which was announced November 5, 2014.

Teijin DuPont Films Japan (TDFJ or the company) currently produces 30,000 tonnes/year of polyester films at its Gifu factory has resolved to integrate these activities at the and Utsunomiya factory.

To date, TDFJ has implemented numerous measures to reduce costs, including discontinuing production at its Ibaraki factory, to make its polyester films business more competitive. Despite these efforts, increasingly intense rivalry in global markets persuaded the company of the need to further integrate its production facilities to enhance production efficiency and ensure profitability going forward, resulting in the aforementioned resolution.

TDFJ will scale back production at its Gifu factory, with operations at the facility to shut down at the end of September 2016. It will continue to function as an R&D facility.

Teijin says it intends to absorb the impact of this move on employees involved in production at the Gifu factory within the Teijin Group through recruitment to fill vacancies created by the retirement of employees at other plants and reassignment to other established project teams or departments.

Having already reported impairment losses on the production equipment of the Gifu factory in the six months ended September 30, 2014, Teijin expects any additional negative impact of this move on its full-term consolidated operating results to be minimal. The positive impact of this move on Teijin’s income performance are reflected in the targets of its revised medium-term management plan.


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