Asahi Kasei has announced that Asahi Kasei and Teijin Limited (“Teijin”) have agreed today to implement an absorption-type merger between Asahi Kasei Advance Corp. (“Asahi Kasei Advance”), a wholly owned subsidiary of Asahi Kasei, and Teijin Frontier Co., Ltd. (“Teijin Frontier”), a wholly owned subsidiary of Teijin, whereby Teijin Frontier will serve as the surviving company and become a joint venture between Asahi Kasei (20%) and Teijin (80%), effective October 1, 2026.
Asahi Kasei Advance was established in 2015 as a trading company primarily handling products from the Asahi Kasei Group, such as fibers, chemical products, and construction materials. Considering sustained business expansion, it was determined that operation of the business under Teijin Frontier, which combines trading company functions having strong global procurement capabilities and manufacturing functions to develop and produce high-performance fibers, providing unique solutions across a wide range of fields, including apparel textiles and industrial materials, would be the most promising path forward rather than pursuing independent growth for Asahi Kasei Advance.
The purpose of the integration announced today is to combine the business platforms, sales networks, and customer bases of Teijin Frontier and Asahi Kasei Advance to drive sustainable growth and maximize corporate value. The strengths of both companies will be leveraged to form a corporate entity with greater competitiveness and a solid foundation for growth, positioned for sustainable value creation.
Hangzhou Asahikasei Textiles Co., Ltd., a subsidiary of Asahi Kasei (China) Co., Ltd., which manufactures and sells textile products, will be transferred to Asahi Kasei Advance prior to the integration.
The effect of the integration on the consolidated earnings of Asahi Kasei is immaterial.
Corporate profile after the integration
| Surviving Company | |||
| 1) Company name | TBD | ||
| 2) Location | TBD | ||
| 3) Name and position of representative | TBD | ||
| 4) Business field | TBD | ||
| 5) Paid-in capital | TBD | ||
| 6) Shareholders and percentage of equity | Teijin 80%, Asahi Kasei 20% | ||
| 7) Fiscal year-end | TBD | ||
| 8) Net assets | TBD | ||
| 9) Total assets | TBD |
Profile of Teijin Frontier Co., Ltd.
| Representative | Yasunari Hirata, President and Chief Executive Officer | ||
| Operations | Manufacture, processing, sale, and import/export of polyester yarn and fiber, textiles, apparel products, automotive materials, construction and architectural materials, industrial supplies, lifestyle products, etc. | ||
| Location | Nakanoshima Festival Tower West, 2-4, Nakanoshima 3-chome, Kita-ku, Osaka | ||
| Employees | 878 | ||
| Establishment | October 1, 2012 |
Profile of Asahi Kasei Advance Corp.
| Representative | Keiji Kasumi, President & Representative Director | ||
| Operations | Product trading, manufacturing and processing, and services in the fields of textiles, chemicals, and construction materials | ||
| Location | Sumitomo Fudosan Onarimon-ekimae Bldg., 17-21 Shimbashi 6-chome, Minato-ku, Tokyo | ||
| Employees | 553 | ||
| Establishment | April 1, 2015 |
