 "Toyobo terminates textile operations in Brazil")
Japan’s Toyobo Co Ltd has terminated the textile operations of its Brazil?based consolidated subsidiary Toyobo do Brasil Ltda (TBL) due to a sluggish market in that South American country. TBL, however, will continue production and sales of bio?products and engineering plastic materials, etc.
Toyobo established a local company in Brazil in 1955, embarking upon textile production and sales with the aim of contributing to the Brazilian economy. The company, which received its present?day name in 2001, operated as an integrated maker, handling spinning, weaving and processing with support from local communities.
In recent years, however, local spinning companies have substantially boosted their production capacities in the Brazilian textile market, which has also seen a surge in the import of foreign apparel products. This situation contributed to imbalance in supply and demand, resulting in considerable drops in yarn and fabric prices.
In the face of such market conditions, TBL strived to improve productivity while shifting its focus to high?value?added products. However, its revenues plummeted due to the stagnant Brazilian economy and a further deterioration in the textile market, prompting the company to scale down production and implement structural reforms in the last few years. Despite these efforts, TBL had no prospects of recovering its income, and thus decided to terminate the textile business.
TBL will continue its production of enzymes, raw materials for the Toyobo Group’s bio?product businesses, and try to speedily expand its production of automobile?use engineering plastic materials, which started last year.
Toyobo is currently studying how the termination of textile operations in Brazil will affect its consolidated business performance in the current fiscal year.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%