[Company analysis] Teijin Ltd.(帝人)

「Teijin Ltd.(帝人)」headquartered in Osaka, is one of the largest textile companies in Japan. This is the first company in Japan to handle rayon. In recent years, in addition to the existing textile business, the company has been focusing on healthcare and IT businesses. Teijin have 111 affiliated companies overseas, and our overseas sales account for 40% of the total. The number of consolidated employees is about 20,671.

 

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Teijin Ltd.
Company name (Japanese)	帝人
Date of establishment	Monday, June 17, 1918
Headquarters location	〒530-8605 大阪府大阪市北区中之島三丁目2番4号
Capital	71,833
Consolidated sales	888,589
Consolidated operating profit	60,000
Consolidated total assets	1,020,654
Consolidated capital	427,212
Capital adequacy ratio	41.9%
Consolidated number of employees	20,671

 

 

 

2. Summary and Features

 
「Teijin」was originally founded in Yonezawa City, Yamagata Prefecture. At the time of its establishment in 1915, all Japanese companies had relied on the rayon imports from Europe, but the rayon import amount was decreased due to the effects of World War I.  by responding domestic demands of rayon, this company grew with very high rate from its beginning. In 1918, when they decided to reorganize itsa corporation structure, the company name was changed to「Teikoku Jinzo-Kenshi Kaisha(帝国人造絹絲)」.

After the end of World War I, 「Teijin」 fell into bankruptcy due to the "Wall Street Crash(1929)". At that time, Yamagata factory was the birthplace of Teijin, but its efficiency was lower than the Iwakuni factory built in 1927, so the Yamagata factory was eventually closed. As a result, Teijin left Yamagata and relocate its headquarters to Osaka, which was then a mecca for the textile industry.

By this the situation was improved a bit, but with the end of World War II, the market demand for rayon dropped sharply. 「Toray(東レ)」 had acquired nylon manufacturing technology from「DuPont」in the United States, and this nylon almost killed rayon market, so「Teijin」was fallen to the crisis of bankruptcy again. At this time, This company introduced polyester production technology from「ICI」 in England in 1958, and with great success, 「Teijin」 was somehow able to recover.

The recession of the textile business repeats many times, restructuring had been carried out many times. Because of this, there was passive corporate culture was established in 「Teijin」, so their employees just tried to avoid only layoff. And it made the situation become worse. In the late 1990s,  Teijin decided to settle this problem and initiated medical business and the high-performance fiber business such as carbon fiber.

By adding new business in the group, they have achieved solid results, such as a continuous increase in operating income from fiscal 2000 to 2006. At present, 「Teijin」is focusing on the automotive parts business. In 2018, sales and operating income of materials business such as aramid fiber and carbon fiber + healthcare business will account for the majority of sales. In other words, Teijin's core business is no longer a textile business, but a materials business and a healthcare business.

 

 

 

3. Major Business

 

■ Materials Business
「Teijin」Manufactures electronic materials and chemical products used in various products such as solar panels, LCDs, and automotive parts.

■ Textile Products Business
They handle high-performance fibers and artificial leathers used in various fields such as friction materials for brakes, firefighters, and vehicle seats.

■ Healthcare business
This company also provide services related to pharmaceuticals and home healthcare.

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		741,291	834,985	888,589
Consolidated operating profit		56,512	69,822	60,000
Consolidated total assets		964,053	986,184	1,020,654
Consolidated net assets		351,829	408,237	427,212
Breakdown of sales	Materials Business	539,847	624,812	671,558
	Healthcare business	150,676	155,370	157,511
	Others	50,767	54,802	59,520