Teijin Frontier Co., Ltd. President Yasunari Hirata and Asahi Kasei Advance Corporation President Keiji Kasumi held a press conference on December 2 regarding their planned business integration on October 1, 2026. They explained the background of the integration and revealed that, through four synergy and growth strategies, they aim to achieve sales of around 500 billion yen by around 2030.
The integration will be carried out as an absorption-type merger, with Teijin Frontier as the surviving company and Asahi Kasei Advance as the dissolving company. Afterward, the company will be reorganized into a joint venture co-funded by Teijin and Asahi Kasei. The new joint venture will have an ownership ratio of 80% Teijin and 20% Asahi Kasei. The new company name, location, and representative have not yet been decided.
Through the integration, sales will reach approximately 440 billion yen (about 350 billion yen from Teijin Frontier and about 90 billion yen from Asahi Kasei Advance), with business profit of about 22 billion yen (about 18 billion yen and about 4 billion yen, respectively). The companies expect to maintain a ROIC (return on invested capital) of over 8% and operate efficiently. Globally, the new entity will have 42 domestic bases, 31 overseas bases, and about 6,700 employees.
Regarding the background of the integration, Teijin Frontier President Hirata explained: “Amid increasing uncertainty, we held various discussions for the future and concluded that Asahi Kasei Advance is the best partner to achieve sustainable growth and maximize corporate value.” Asahi Kasei Advance President Kasumi also stated: “As we expanded our business domains and strengthened our unique businesses, the idea of integration with Teijin Frontier, whose business areas are very close to ours, emerged. Through integration, we can further strengthen each other’s strengths and complement weaknesses, leading to business development.”
The four synergy and growth strategies outlined are:
1. Integration of both companies’ global value chains
2. Expansion of scale and joint sales activities leveraging both companies’ material brands, as well as new customer acquisition
3. Joint development of high-performance materials
4. Personnel exchange to share technology and know-how
Toward providing products with stronger price competitiveness
In value chain integration, the companies aim to optimize raw material procurement, secure a stable supply system, reduce costs, and provide highly price-competitive products. In sales leveraging scale and material brands, they expect expanded scale and broader applications to make them the first point of contact for markets and customers, thereby promoting new customer acquisition. They also plan to expand sales through cross-selling of each company’s products and brands.
For high-performance material development, they will integrate R&D in apparel fibers and industrial materials to promote joint development, reflecting customer needs and strengthening responsiveness to sustainability-oriented demands. Personnel exchange will involve global bases, sharing know-how through staff rotations. This will contribute to employee growth while improving and advancing operations, enhancing productivity, and strengthening sales capabilities.
The specific synergy and growth strategies will be finalized after clearance is obtained, scheduled by the end of March.
Meanwhile, Teijin Frontier established an Integration Preparation Office on December 2.