Fiber maker Nisshinbo Industries Inc. will shut down two domestic thread and fiber factories and relocate part of its operations overseas to fend off competition from lower-priced imports, the company said Friday.
Production at the two plants -- in Notogawa, Shiga Prefecture, and Okazaki, Aichi Prefecture -- will be scaled down beginning in December.
The company said an upsurge in cheap imports of cotton and synthetic fiber threads and clothes has dealt a serious blow to the competitiveness of its domestically made products.
Production facilities in the two plants will be moved to the firm's plants in Indonesia and other countries with the 280 employees at the two to be transferred to other domestic factories or subsidiaries, the company said.
As a result, Nisshinbo's domestic fiber production will concentrate on six factories, including one in Hamamatsu, Shizuoka Prefecture.
With the planned closures to be completed by July 2002, Nisshinbo will write down losses resulting from the liquidation of the two plants as an extraordinary loss for fiscal 2001 ending March 31, 2002, it added.
Toray's Czech foray
Toray Industries Inc. announced Friday that the company will launch a new textile subsidiary Monday in the Czech Republic to strengthen its global taffeta business.
Toray Textiles Central Europe, based in Moravia, will have a monthly production capacity of 3 million meters of polyester filament, Toray said.
TTCE will take over from Toray's Thai production plant as the principal supplier of taffeta to the European market, Toray said.
Toray has invested 5.5 billion yen in the subsidiary, which will employ 290 people.
Together with production bases in Japan and Thailand, the Tokyo-based textile maker hopes to produce and market 160 million meters of taffeta per annum for use in lining apparel.
Toray said it aims to capture a 25 percent share of the world's polyester taffeta market.