Tokyo, Japan, June 24, 2014 --- Teijin Limited and Teijin Frontier Co., Ltd., the Teijin Group's fiber product converting company, jointly announced today that they will accelerate their automotive rubber materials business in Thailand by establishing Teijin FRA Tire Cord (Thailand) Co., LTD. in partnership with Ayaha Corporation, a Japanese company specializing in tire cord production. Teijin also announced that it will expand the production capacity for automotive hose cord at a separate subsidiary, Teijin Cord (Thailand) Co., Ltd.
The Teijin Group will develop midstream business by accelerating sales to Asia’s expanding automotive industry, aiming to strengthen its local supply of automotive rubber materials, such as tire cord and hose cord, to customers in China and the ASEAN region.
The new joint venture will be established on the premises of Teijin (Thailand) Limited located in Bang Pa-in Industrial Estate, Ayutthaya, in June. It will begin operating with a 16,000-ton annual capacity from October 2015. The company will start with capital of 380 million baht (11.7 million USD), which will be shared in the ratio of Teijin–10%, Teijin Frontier–56.66% and Ayaha–33.34%.
The new tire cord plant will be equipped with twisting, weaving and adhesion facilities. Combining Teijin and Ayaha’s advanced processing technologies and Teijin Frontier’s converting capabilities, the plant will produce highly processed rayon, aramid and PEN (polyethylene naphthalate) tire cords for high-performance tires that will help meet the expanding demand for automotive fuel efficiency. It also will produce polyester and nylon tire cords for general tires.
Future plans call for Teijin Cord (Thailand) Co., Ltd. to expand its automotive hose cord business as of April 2015. The company will increase its adhesion facility’s annual capacity by 70% at a cost of 29 million baht (900,000 USD). Teijin Cord (Thailand) is located in the Rojana Industrial Park of Ayutthaya.
Sustainable transportation is one of five key business fields that the Teijin Group is targeting for long-term corporate growth. By optimizing the group’s global production and sales structure, it now aims to expand its markets for automotive rubber, interiors and safety materials in China and the ASEAN region.
About the Teijin Group
Teijin (TSE: 3401) is a technology-driven global group offering advanced solutions in the areas of sustainable transportation, information and electronics, safety and protection, environment and energy, and healthcare. Its main fields of operation are high-performance fibers such as aramid, carbon fibers & composites, healthcare, films, resin & plastic processing, polyester fibers, products converting and IT. The group has some 150 companies and around 16,000 employees spread out over 20 countries worldwide. It posted consolidated sales of JPY784.4 billion (USD 7.7 billion) and total assets of JPY 768.4 billion (USD 7.5 billion) in the fiscal year ending March 31, 2014.
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