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Breaking Flooring News

Teijin and DuPont announce plans to dissolve Teijin DuPont Nylon

October 16, 2002
TOKYO -- Teijin Limited and DuPont K.K. announced recently that the two companies have come to an agreement to dissolve their 50/50 joint-venture Teijin DuPont Nylon K.K. (TDN).

The dynamics of the Japanese market, influenced by economic factors in and outside of Japan for the products made by TDN, necessitated this decision, the companies said. In the past 5 years, the recession in the construction industry negatively affected the demand for nylon in carpets while demand in the apparel industry was affected by a shifting mill base and changes in consumer preferences.

Furthermore, the recent global oversupply situation had made it difficult for TDN to continue to contribute to sustainable growth for Teijin and DuPont, the companies said.

Because both Teijin and DuPont put a high priority on minimizing the impact to customers, measures will be taken to maintain continuous supply during the transition, the companies said.

Teijin will take over ownership of TDN on November 1, 2002 and will continue operation until December 2003, supplying customers and the markets served by TDN. The timing of the shutdown of the Mihara plant is under discussion with the labor union and related parties.

Meanwhile, full-scale support with the cooperation of Teijin and DuPont will be provided to customers to ensure smooth conversion to products from other DuPont sites or other companies, the companies said.

After the dissolution, DuPont will directly market its products to customers through its Textiles and Interiors (DTI) organization in Japan.

"It is a painful decision to discontinue a business that has been in the marketplace for nearly 40 years, including the joint venture period with DuPont," said Yoshinaga Karasawa, General Manager, Industrial Fibers Business Group of Teijin Limited.

Employees seconded to the joint venture from Teijin and DuPont will return to their respective parent company.

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