Wed. Feb 28th, 2024

Toyobo Co., Ltd. has terminated textile operations at its Brazil-based consolidated subsidiary, Toyobo do Brasil Ltda. (TBL) on November 3rd, due to a sluggish market in the 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 at 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, and the Brazilian textile market has also seen a surge in imports of foreign apparel products. This situation contributed to an imbalance of 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 of the textile market, prompting the company to scale down production and implement structural reforms in the last few years.

TBL will continue its production of enzymes, raw materials for the Toyobo Group’s bio-product businesses, and will endeavor to speedily expand its production of automobile-application engineering plastic materials, which started last year.

By daisen