Industrial textile business development in Asia
Our Textile Company is also actively expanding beyond the clothing sector, including hygiene products, industrial materials and electronics. We have been working to expand our operations globally in recent years, focusing particularly on Asia.
In the hygiene sector, which includes products such as disposable diapers made from nonwoven fabric and sanitary pads, Japanese manufacturers are seeking opportunities to enter the ASEAN market, which is expected to expand considerably in line with economic growth in the future. We are therefore stepping up initiatives targeting leading local suppliers in various countries, so that our Textile Company can establish a supply chain for raw materials and supplies throughout the ASEAN region.
In the industrial materials and electronics sectors meanwhile, we invested in leading adhesive tape manufacturer and supplier Teraoka Seisakusho Co.,Ltd. in 2012. As well as manufacturing general-purpose packaging tape, Teraoka is also increasing production in the ASEAN region in order to meet specific demands made by customers such as precision machinery manufacturers. It has established a plant in Indonesia so that it can reliably supply products throughout the region, and is working to improve price competitiveness. Given demand for the tape used in the electronics sector for devices such as smart phones and tablet PCs is expected to soar in the future, we are looking to expand our operations in this sector on a priority basis.
In addition, we have established a joint venture with Shanshan Group Co.,Ltd. in China and a major Japanese manufacturer to manufacture resin molded articles comprising carbon fibers used in aircraft and so on to prepare for the emergence of new industries in China and other Asian countries.