Teijin Fibers Go To Indonesian Firms

Japan’s Teijin will transfer ownership of its Indonesian polyester subsidiary Tifico to four Indonesian firms with interests in the textiles business. Unprofitable for at least three years, Tifico posted a net loss of $58 million in 2008 on sales of $301 million. Teijin says it will continue to support Tifico by offering technical assistance and importing its polyester fiber. The Japanese firm expects to post a $175 million restructuring charge. Teijin launched Tifico in the early 1970s, but the unit has been unable to compete against China during the past decade.