Teijin Fibers Limited has announced plans to withdraw from the operations of Teijin Group core textile yarns dyeing plant Teijin Nestex Limited, based in Ishikawa, Japan, and to dissolve and liquidate the company at the end of March 2010.

Teijin Nestex’s predecessor Daishojiseren Ltd. joined the Teijin Group in 1951 and the company has functioned as the Group’s core textile yarns dyeing plant for the past approximately 50 years. During this time, the increasing shift of textile manufacturing offshore by customers has pushed down order volumes for dyeing and prices for processing, which has significantly hampered the company’s profitability.

Having concluded that despite numerous efforts to improve Teijin Nestex’s operating results-including the integration of facilities and the implementation of stringent rationalization measures-structural issues will continue to impede the profitability of Teijin Nestex. Teijin Fibers has therefore taken the decision to dissolve and liquidate the company.

Schedule

Full withdrawal from businesses: End of March 2010

Subsequent to dissolution and liquidation:

The company’s textiles and apparel dyeing business will be shifted to dyeing facilities currently under contract to Teijin Fibers in Japan and to Nantong Teijin Co., Ltd. (Nantong, Jiangsu, PRC) overseas.

The company’s automotive seat fabric dyeing business will be retained by transferring it to another Teijin Group company or by establishing a related alliance with a company outside the Teijin Group.

The possibility of shifting businesses other than dyeing (sales of bristles for calligraphy and paint brushes; window and door screens; and sewing) to other Teijin Group companies in Japan is currently under consideration.

Plant site:

The site of the company’s former plant in Kaga, Ishikawa, and related assets-with the exception of those than can be put to use effectively within the Teijin Group-will be disposed of.