Teijin and CCFA to develop China fibre market
3rd April 2012, Tokyo & Beijing
Teijin has announced it has formed a partnership with the China Chemical Fibers Association (CCFA) in order to pursue business opportunities in the fields of chemical fibres and related industries in China. This is said to be first time the CCFA has entered into a comprehensive alliance with a foreign privately owned business.
The CCFA is the only nationwide organization covering China’s entire fibre industry. It is a non-profit organization established in 1993 and is made up of about 400 members from related businesses, universities and research institutions.
Under the agreement, collaborations between Teijin group companies and major Chinese companies introduced by the CCFA will pursue various opportunities to enhance Chinese fibre products with added value, differentiation and greater production efficiency and develop high-performance fibres and related applications.
Closed loop recycling system
The agreement also covers the nurturing of unique businesses, the development of green solutions for greater sustainability, and the establishment of a closed-loop recycling system similar.
Teijin has already reached an agreement to set up a closed-loop system for recycling polyester with Zhejiang Jiabao New Fiber Group Co., Ltd., which is based in Shaoxing, Zhejiang province and is a group company of Jinggong Holding Group, a prominent company involved with environmental management.
The system will be created by leveraging Teijin’s leading-edge proprietary chemical recycling technology and business expertise cultivated through the global expansion of its Eco Circle closed-loop recycling system.
China is high priority
China is a high-priority market in the Teijin group’s medium- to long-term growth plan. The group aims to expand business in China through strategic alliances with local partners, expansion of production and R&D bases and development of environment-related businesses.
By creating solutions based on its extensive polymer and fibre related technologies and knowhow, Teijin hopes to expand its Chinese market while contributing to the advancement of the local chemical fibre industry.
“As we celebrate the 40th anniversary of normalized diplomatic ties between Japan and China, we are particularly pleased to pursue mutual growth opportunities with the CCFA and its member companies,” said Shigeo Ohyagi, president and CEO of Teijin Limited.
“We hope to apply our technologies and expertise toward solutions for energy savings and environmental preservation in the chemical fibre industry, a strategic industry in China’s 12th five-year plan.”
Realizing greater competitiveness
While China produces more than 60% of the world’s chemical fibres, fuel and raw material prices have been rising and demands for low-carbon operations and resource conservation have been strengthening.
The CCFA is promoting industrial structural reforms targeted at realizing greater competitiveness through product differentiation and added value. High-performance, energy savings and waste reduction are key goals of the chemical fibre industry under China’s 12th five-year plan through 2015.
According to Teijin, the CCFA now hopes to achieve further advances in the Chinese chemical fibre industry through its new partnership with the Teijin Group, a major global player with significant technological and business strengths.
“The collaboration between the CCFA and Teijin is a bold new initiative between the Chinese and Japanese chemical fibre industries, which have a long history of complementing each other’s strengths,” said Duan Xiaoping, chairman of the CCFA.
“I hope this strategic undertaking, which coincides with China’s 12th five-year period, will serve as a model for CCFA collaborations with other progressive global companies. Teijin offers advanced technology and valuable knowhow that are required in China’s chemical fibre industry. I believe our partnership with Teijin will pave the way for further cooperation between the chemical fibre industries of our two countries.”
Teijin in China
Teijin’s foray into the Chinese market goes back to the 1970s, when it began polyester fibre plant exportation. Since then, the group has built manufacturing, sales and marketing bases in Beijing, Shanghai and other major cities.
Currently, 12 major Teijin Group companies have bases in mainland China, employing about 2,000 people in businesses including aramid, carbon and polyester fibres, films, plastics and medical/pharmaceuticals, as well as the trading and marketing of fibre products.
In April 2010, Teijin (China) Investment Co., Ltd. was established in Shanghai to oversee the group’s ongoing expansion in China and promote the development of markets, businesses and related investment. The group aims to expand current sales in China by three to four times by around 2020.
Author: Billy Hunter