Teijin eyes Indonesia for relocation

Teijin eyes Indonesia for relocation

Dow Jones, Tokyo

Teijin Ltd. will transfer production of a clothing-use stretchable filament from Japan to Indonesia, the Nihon Keizai Shimbun reported in its Wednesday morning edition.

The company plans to move equipment used to produce the filament by the end of September and then begin production in Indonesia in November, the financial daily reported.

Teijin aims to cut costs for the product, which as a clothing- use filament is a low-profit material.

The elastic filament is used in such products as golf pants. The company currently produces about 300 tons of the material a year at its works in Matsuyama, southern Japan.

In Japan, Teijin will continue to produce polyester filament for non-clothing uses, such as automobile seats.

The company has already moved production of other clothing-use materials abroad.