Apparel makers reach for Teijin when they need more fiber. Almost a third of the company's sales come from fibers that are used primarily in apparel but that are also found in items as varied as circuit boards and bulletproof jackets. In a joint venture with DuPont, Teijin produces polyethylene terephthalate (PET) films used in packaging and magnetic media. The company also makes polyethylene naphthalate (PEN) film used in videocassettes, and it makes pharmaceuticals and medical products, as well as textile and industrial machinery such as spinning machines. Teijin serves customers in Asia, Europe, and the Americas through about 150 subsidiaries and affiliates.
The company operates in 20 countries including China, India, Japan, the Netherlands, Russia, and the US.
Teijin's major operations include Toho Tenax Co., Ltd (Advanced Fibers and Composites); Teijin Pharma Limited (HealthCare); Teijin Chemicals Limited (Electric Materials and Performance Polymer Products); and Teijin Frontier Co., Ltd (Products Converting).
The company reported a 5% jump in overall revenues led by stronger perfromances by its High Performance Fibres, Pharmaceuticals and Home Health Care, Trading and Retail segments, where revenue increased by 15%, 5%, and 3%, respectively. This offset weaker performances by its Polyester Fibres and Films and Plastics segments, which decreased by 1% and 1.4%, respectively.
Teijin's net income decrease of 52% in 2012 was due to the decline in operating income caused by supply chain disruptions as a result of the natural disasters in Japan and Thailand, as well as to lackluster conditions in electronics markets worldwide, which caused a deterioration of results in the Films and Plastics segment. Other factors included a 7% increase in cost of sales due to as a consequence of costs incurred by subsidiaries that changed their accounting period and of rising prices for fuel and raw materials, and a 7% increase in selling, general and administrative expenses due to standardization of accounting periods, as well as an increase in labor costs. R&D expenses were up 1% due to forward-looking investments in corporate research in key technological areas and in the cultivation of new businesses.
The company's strategy is to broaden its global network and expand its product offerings through selective acquisitions, joint ventures, and other investments. Growing it global footprint, in 2012 the company established a joint venture to sell polyester films in the South Korea, and a fiber and textile product research and development center in Jiangsu Province, China.
That year, Toho Tenax announced that it will develop and market carbon fiber fabrics for India's composite industry in collaboration with Hindoostan Technical Fabrics Limited to secure a stronger market position in India. Expanding capacity in Japan,Toho Tenax also announced plans to expand its nickel-coated carbon fiber production at its Mishima Plant in the Shizuoka prefecture.
Boosting it US operations, in 2012 Teijin announced plans to open a technical center in Michigan to develop automotive and other industrial applications of carbon fiber reinforced thermoplastic composite products.
Teijin acquired US nanotechnology venture NanoGram in 2010. The venture had developed a process to turn silicon into ink to make semiconductors at lower cost. NanoGram's ink is made from silicon particles less than 20 nanometers in diameter, which can be sprayed onto a substrate to make transistors. – less