Asahi Kasei Advance Corp. will be merged into Teijin Frontier Co., Ltd., forming a joint venture in which Teijin will own 80% and Asahi Kasei will own 20%.

Asahi Kasei Advance was established in 2015 as a trading company primarily handling products from the Asahi Kasei Group, including fibers, chemical products and construction materials. Teijin Frontier combines trading company functions with strong global procurement capabilities and manufacturing functions to develop and produce high-performance fibers, providing unique solutions across a wide range of fields, including apparel textiles and industrial materials. Considering sustained business expansion, it was determined that operating the business under Teijin Frontier would be the most promising path forward, rather than pursuing independent growth for Asahi Kasei Advance.

The purpose of the integration is to combine the business platforms, sales networks and customer bases of Teijin Frontier and Asahi Kasei Advance to drive sustainable growth and maximize corporate value. The strengths of both companies will be leveraged to form a corporate entity with greater competitiveness and a solid foundation for growth, positioned for sustainable value creation.

Hangzhou Asahikasei Textiles Co., Ltd., a subsidiary of Asahi Kasei (China) Co., Ltd., which manufactures and sells textile products, will be transferred to Asahi Kasei Advance prior to the integration.