Teijin Aramid closing Dutch production site under cost-saving plan

Arnhem, The Netherlands – Teijin Aramid, part of Japan's Teijin Group, has announced plans to close its aramid fibre production site in Arnhem as part of a series of cost-cutting measures.

In a recent statement, the Dutch-based manufacturer said it is planning to reduce jobs by 15% over the coming years in order to “rightsize” the organisation in response to market conditions.

Teijin Aramid, it stated, "will start developing the design principles for streamlining the organisational structure, with the possibility of further reductions not being eliminated.”

The changes associated with the restructuring are schedule to begin during 2025.

The measures include the intended closure of the production site in Arnhem - Kleefse Waard; evaluation of the international location structure; adjustments in strategic direction; and a strong focus on cost-effectiveness.

According to Teijin Aramid, the cost-cutting measures are necessary in face of increased competition, especially from Asia.

Additionally, the company expects demand for aramid to stagnate due to the slowdown of the global economy: putting pressure on selling prices.

“At the same time, energy costs and labour costs are rising, which increases the cost price,” the company added.

Teijin Aramid will, therefore, focus on achieving more efficient production and growth scenarios, in both existing and new markets that offer a positive outlook.

"After this set of measures, Teijin Aramid will return to profitability in the long term,” said CEO Peter ter Horst.

“Despite the current challenging conditions, we remain confident in a prosperous future for our company," he added.

With brands including Twaron, Technora, and Teijinconex, Teijin Aramid's fibres are used applications such as protective clothing, tires, automotive components and industrial products.

The company currently operates three production facilities in The Netherlands; two in Japan and one in Thailand.