Teijin launches urgent strategic review

ERJ staff report (DS)

Tokyo -- The Teijin Group has developed a new basic management policy encompassing urgent short-term measures and structural reforms, as well as medium- and long-term business strategies. The company said it need to "Drastically restructure poorly performing businesses (polyester fibers, polyethylene terephthalate (PET) film, polycarbonate resin)" and, "Put aramid fibers and carbon fibers businesses back on a growth track."

The company is launching group-wide cuts in personnel, capital expenditure and administration cost. The company is also cutting pay, using the performance based remuneration system to reduce levels of remuneration in these difficult times and limiting new hires.

Teijin said it will restructure its aramid unit, adding, "we will endeavor to enhance cost competitiveness by lowering the breakeven point; and cultivate new markets worldwide by promoting ongoing efforts to develop new materials and products and establishing new midstream and downstream business models."

In addition, Teijin will restructure its polyester fibres business as well as other poorly performing units. Teijin said, "In polyester fibers, we have already begun taking steps to restructure the value chain. Initiatives include creating a vertically integrated organization for our automotive interior business."

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Press release from Teijin