Tokyo-based Teijin Group — a global enterprise including man-made fibers, films and plastics, home
healthcare and pharmaceuticals, trading and retail, and information technology businesses — has
announced it will implement a new Basic Management Policy including short-term measures and
structural reforms, along with medium- and long-term business strategies. Teijin’s performance has
declined in recent months in line with the ongoing economic downturn, necessitating the changes.
Short-term measures will include reducing capital investment and inventories, lowering
production and head office costs, decreasing directors’ earnings, and decreasing personnel costs by
revamping systems and cutting overtime.
Structural reforms aimed at placing Teijin back on a path of growth include restructuring
poorly performing businesses such as the polyester fibers, polyethylene terephthalate (PET) film
and polycarbonate resin businesses. The company already has begun restructuring the polyester
fibers business, including creating a vertically integrated organization for the automotive
interior sector. Teijin also will restructure the high-performance materials businesses, mainly
aramid fibers and carbon fibers.
As part of its medium- and long-term management policies, the company plans to further shift
the business portfolio toward high-performance materials, new businesses and pharmaceuticals and
home healthcare, and away from commoditized materials including polyester fibers, PET film and
polycarbonate resins.
April 28, 2009
