Japan’s Asahi Kasei to stop US spandex operations in October

03 August 2012 06:20  [Source: ICIS news]

SINGAPORE (ICIS)--Japan’s Asahi Kasei Fibers Corp has decided to end manufacturing and sale of spandex or plastic polyurethane filament at its US subsidiary from October this year as part of its restructuring program, its parent firm Asahi Kasei said in on Friday.

Asahi Kasei Spandex America will discontinue operating because of weak demand in the US market ever since the financial crisis of 2008, Asahi Kasei said in a statement.

The company said that “with no foreseeable prospect for a major recovery in the US market, Asahi Kasei Fibers concluded that further investment in its US spandex business could no longer be justified”.

The company did not state what would happen to Asahi Kasei Spandex America's 133 workforce in Bushy Park Industrial Complex, Goose Creek, South Carolina in the US.

“The company will be in a stronger position to increase earnings in its spandex business by enhancing production capabilities at the remaining global sites while focusing on innovative product development and more efficient sales,” it added.

Asahi Kasei Fibers has six manufacturing sites worldwide and it cited “extremely challenging” market conditions behind its decision to restructure its operations.

By: Tahir Ikram
+65 6780 4359

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