Arnhem - 27 November, 2024
Teijin Aramid adapts its organization to a changing market
Teijin Aramid, producer of high-performance aramid fibers, has announced improvement measures in response to market conditions. These forward-looking adjustments include targeting growth markets, optimizing processes further, and strategy adjustment. Consequently, the number of jobs will be reduced by ~15% over the coming years. Furthermore, Teijin Aramid will start developing the design principles for streamlining the organizational structure, with the possibility of further reductions not being eliminated. Teijin Aramid is committed to building a healthy future in the Netherlands.
Adjustments for a healthy future
Due to the current market conditions and increased competition, cost-cutting measures are necessary to keep Teijin Aramid profitable. The changes will begin in 2025, with full implementation in subsequent years. The measures focus on several areas, including the intended closure of the production site in Arnhem - Kleefse Waard, evaluation of the international location structure, adjustments in strategic direction, and a strong focus on cost-effectiveness.
Engagement with Works Council and unions
Conversations with the Works Council and trade unions have started. Teijin Aramid plans to rightsize the organization through natural attrition, limiting temporary and agency workers and automation of processes. Compulsory layoffs cannot be ruled out.
"After this set of measures, Teijin Aramid will return to profitability in the long term. We provide high-quality, market relevant products that are in demand in multiple applications globally. Despite the current challenging conditions, we remain confident in a prosperous future for our company."
Peter ter Horst, CEO at Teijin Aramid.
Growth for the future
Teijin Aramid is currently facing increased competition, especially from Asia. Additionally, it is expected the demand for aramid will stagnate in the coming years due to the slowdown of the global economy. This puts pressure on the selling price. At the same time, energy costs and labor costs are rising, which increases the cost price. Teijin Aramid is confident in achieving profitable growth in the long term. To this end, Teijin Aramid is focusing on more efficient production and growth scenarios, in both existing and new markets that offer a positive outlook.
About Teijin Aramid
Teijin Aramid is a subsidiary of the Teijin Group and a world leader in the production of aramid. The company's products, Twaron®, Teijinconex® and Technora® are known for their excellent strength-to-weight ratio, heat resistance and wide range of applications. Aramid is used in a variety of markets,including automotive, manufacturing, safety, life protection, and aerospace. These high-quality and recyclable materials are produced in the Netherlands, Thailand and Japan. For more information, please visit: www.teijinaramid.com
About the Teijin Group
Teijin (TSE: 3401) is a technology-driven global company with two core businesses: high performance materials and healthcare solutions. Teijin was founded in 1918 as Japan's first rayon manufacturer and today consists of some 170 companies with 20,000 employees in 20 countries. Through 'Pioneering solutions together for a healthy planet', Teijin aims to be a company that supports the society of the future by protecting the environment globally and meeting the needs of people and communities. The Teijin Group reported consolidated revenues of JPY 1.032.8 billion (USD 6.6 billion) and JPY 1.251.0 billion (USD 8.0 billion) in assets for the fiscal year ended March 31, 2024. Go to www.teijin.com
Press contact at Teijin Aramid
Corporate Marketing and Communications Department
CMC@teijinaramid.com
T: +31 88 268 88 88
Email: cmc@teijinaramid.com
www.teijinaramid.com