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Industry Talk

Teijin announces dramatic restructuring initiatives

As part of mid-term management plan, in fiscal 2015-2016 Teijin will invest JPY 100 billion in core projects currently underway.

6th November 2014

Innovation in Textiles
 |  Tokyo

Industrial, Civil Engineering, Medical/Hygiene, Protective, Sustainable, Transport/​Aerospace

Amid a severe operating environment, Teijin is promoting bold transformation and growth strategies and pressing ahead with dramatic restructuring initiatives.

The company is working towards a solutions oriented business model—the central goal of the company’s original medium to long term management vision Change for 2016.

Cornerstones of revised plan

The company is facing various changes in the group’s operating environment, such as increasingly complex and diverse market needs, shorter product life cycles, poor supply-demand balance in the materials business due to heightened global competition, and increasing pressure to contain healthcare costs.

In view of there changes, Teijin will dramatically restructure loss-making businesses and create a new framework for promoting transformation and growth strategies with the aim of building a foundation for future growth. Accordingly, Teijin has revised its targets for fiscal 2016.

Restructuring initiatives

Teijin estimates that the annual impact of restructuring initiatives when fully realised will be approximately JPY 17.5 billion.

At the same time, an extraordinary loss of JPY 44 billion will be written off in fiscal 2014 as possibly the final one-time loss from restructuring initiatives.

Earnings operating results targets for fiscal 2016

By the end of fiscal 2016 the Teijin Group expects consolidated operating income of JPY 50 billion, ROE of 8%.

Teijin expects results to be bolstered by the growth of core strategic businesses —advanced fibres and composite materials and healthcare—and the positive impact of restructuring initiatives.

Transformation and growth strategies

Another measure is to promote the targeted allocation of corporate resources to realise solutions that integrate key capabilities of existing businesses.

In fiscal 2015–2016, Teijin will invest JPY 100 billion in core projects currently underway, including thermoplastic CFRP and advanced medical materials, and multiple innovative projects in areas that overlap with the group’s core business domains of advanced materials, healthcare and IT.

Teijin Group

Teijin is a technology driven 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 fibres such as aramid, carbon fibres and composites, healthcare, films, resin and plastic processing, polyester fibres, products converting and IT.

www.teijin.com

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