Teijin to Expand Production of Twaron Aramid Fibers
Osaka, June 14, 2001 - Teijin Limited, a leading producer of synthetic fibers headquartered in Osaka, Japan, today announced plans to expand production of para-linked aramid fibers used in a variety of products that will give the Teijin Group a greater than 50% share of the world market for these high performance fibers.
Under the plan, annual production of Twaron® para-linked aramid fiber at Teijin Twaron B.V. of Arnhem, the Netherlands, will increase by 7,500 metric tons to reach 18,500 metric tons by April 2003.
Teijin Twaron B.V., the core company of Teijin Group's aramid fiber business, operates a plant in Delfzijl producing monomers and polymer, and another plant at Emmen producing yarns, both of which Teijin intends to expand for a combined investment cost of approximately 200 million euros or ¥20.4 billion.
Teijin Limited is also investing ¥1 billion to expand annual production of Technora® para-linked aramid fibers at its Matsuyama plant in western Japan by 600 metric tons. The expansion, to be completed by November this year, will lift annual capacity for Technora® to 2,000 metric tons.
The plant expansions in the Netherlands and Japan will enable the Teijin Group to boost annual output of para-linked aramid fibers to 20,500 metric tons, giving Teijin a greater than 50% share of the world market for this product.
"Over the medium term world demand for all types of para-linked aramid fibers is expected to grow by about 10% per annum," says Shosaku Yasui, president and CEO of Teijin Ltd.
"The expansion plan that we are announcing today will further reinforce Teijin's competitive base and allow the company to respond globally to diversifying user requirements," he adds.
1. Background
In December 2000, Teijin Limited acquired the Twaron® para-linked aramid fiber business of Acordis, a major fiber producer based at Arnhem in the Netherlands. Under the name of Teijin Twaron B.V., the newly established company led by President Yoshinaga Karasawa continues vigorously with production, development and sales activities.
Para-linked aramid fiber was developed as a high performance fiber with outstanding strength and thermal resistance. Worldwide demand is expected to reach approximately 36,000 metric tons in 2001, rising to around 50,000 metric tons by 2005 according to Teijin estimates.
A particularly active area of growth is in IT-related industries where global demand centering on optical fiber applications is at present so strong that producers are fully stretched and supply shortfalls are occurring.
In view of this trend in para-linked aramid fiber market demand and the expectation of continued growth in the future, Teijin is responding by boosting production of monomers, polymer and yarns.
2. Details of Increase in Twaron® Business
1) Increase in capacity: 7,500 metric tons of yarns annually
2) Equipment investment amount: Approximately 200 million euros (Around ¥20.4 billion) (1 euro = ¥102)
3) Planned operation start: April 2003
4) Plants to be expanded: Delfzijl Plant (Monomers, polymer); Emmen Plant (Yarns)
3. Details of Increase in Technora® Business
1) Increase in capacity: 600 metric tons of yarns annually
2) Equipment investment amount: Approximately ¥1 billion
3) Planned operation start: October 2001
4) Plants to be expanded: Teijin Limited Matsuyama facility
4. Para-linked aramid fibers
Twaron® has advantages over comparable synthetic fibers in physical properties such as its high strength, low elongation, dimensional and thermal stability. Technora® has advantages in physical properties such as a slightly higher tensile elongation, fatigue and chemical resistance. The diverse characteristics of Twaron® render it ideal for use in the field of ballistic protection such as in bullet-proof vests, as reinforcing material in optical fiber cables and tires and as asbestos replacement in brakes and gaskets. Technora® is often used to buttress cement and MRG (Mechanical Rubber Goods).
For more information, please contact:
Teijin Limited
Manabu Mori
Teijin Public Relations & Investor Relations Office (Tokyo)
Tel.: +81 3-3506-4055 Fax: +81 3-3506-4150
E-mail: ma.mori@teijin.co.jp
Hideko Sugimoto
Teijin Public Relations & Investor Relations Office (Osaka)
Tel.: +81 6-6268-2763 Fax: +81 6-6268-3010
E-mail: h.sugimoto@teijin.co.jp
Teijin Twaron B.V.
Yosh Karasawa
President & CEO
Tel.: +31 26 3664873 Fax: +31 26 3665393
Caroline Mackay
Corporate Communications Manager
Tel.: +31 26 3662030 Fax: +31 26 3665854
E-mail: Caroline.Mackay@twaron.com