Asahi Kasei Fibers to close US spandex operations

TOKYO, JAPAN: Asahi Kasei Fibers, a global spandex manufacturer with six manufacturing sites worldwide, has decided to proceed with restructuring of its spandex (elastic polyurethane filament) operations in order to improve business results. As part of this process, manufacture and sale of spandex at its US subsidiary, Asahi Kasei Spandex America Inc will be discontinued, effective October 2012.

The global spandex market has been extremely challenging in recent years, with oversupply putting downward pressure on sales prices even as feedstock costs remain persistently high. Particularly in the US, where market demand has been weak ever since the global financial crisis of 2008, satisfactory business performance has been difficult to achieve. Having exhausted all efforts, with no foreseeable prospect for a major recovery in the US market, Asahi Kasei Fibers concluded that further investment in its US spandex business could no longer be justified.

Asahi Kasei Fibers will be in a stronger position to increase earnings in its spandex business by enhancing production capabilities at the remaining global sites.

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