Kanebo Ltd. said Thursday it will quit the polyester resin business by selling its resin manufacturing subsidiary to Mitsubishi Chemical Corp. at the end of September.
Kanebo, a household products maker undergoing rehabilitation under the state-run Industrial Revitalization Corp. of Japan, will sell Osaka-based Kanebo Gohsen Ltd. to the chemical company.
The subsidiary, which manufactures polyester resin for use in plastic bottles and polystyrene trays, chalked up 6.2 billion yen in sales in fiscal 2004, according to Kanebo.
Kanebo will also sell the chemical maker all of its stake in a joint venture company set up with Mitsubishi Chemical for such resin manufacturing and sales, it said.
Kanebo holds 20 percent of the outstanding shares in the joint venture in Sabae, Fukui Prefecture.
The move forms part of Kanebo's business revival plan, the company said. It did not disclose the amount of money paid by Mitsubishi for the deal.