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Kanebo To Spin Off Textile Business

Kanebo Ltd., Japan - a manufacturer of consumer products and textiles - plans to spin off its textile business into a joint venture with Japan-based dyeing and finishing firm Seiren Co. Ltd. The new company will comprise Kanebo Spinning Corp.'s cotton business and Kanebo Gohsen Ltd.'s man-made fibers and resin business. It will produce high-value-added fabrics using Kanebo's advanced dyeing and finishing; high-quality polymer modification; and compound and bicomponent fiber and fine-denier spinning technologies. Seiren will contribute its macromolecule, and dyeing and finishing technologies. The transfer is expected to be completed by July 1, 2005. Majority owner Seiren will have an option to purchase Kanebo's 49-percent interest and make the company its wholly owned subsidiary.

May 2005




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