In September 2012, Japan-based Teijin Ltd. and China-based Jinggong Holding Group will establish Zhejiang Jiaren New Materials Co. Ltd. in Zhejiang Province, China. The joint venture (JV) company will chemically recycle polyester fiber scraps and used polyester products into dimethyl terephthalate (DMT), which will then be manufactured into polyester resin and new fibers in a closed-loop recycling system. Teijin, with a 49-percent stake in the JV, brings its advanced proprietary chemical recycling technology and business expertise developed while establishing its ECO CIRCLE® closed-loop recycling system first launched in 2002. Jinggong will own 51 percent of the JV, which anticipates sales totaling 10 million yen in its first year of business.

The JV will invest approximately 6 billion yen to construct a plant for DMT production, polymerization and fiber spinning. The facility, scheduled to open in March 2014, will be Teijin's first recycling operation outside of Japan. Total capacity at the plant is 70,000 tons of DMT, with 20,000 tons coming online initially, and an additional 50,000 tons to be added in a second phase as demand allows. It is expected that the new facility will manufacture 19,000 tons of recycled polyester fiber in phase one.

The JV is the first in a cooperative agreement inked between Teijin and the China-based China Chemical Fibers Association — the nationwide non-profit organization for China's entire fiber industry. Teijin reports China is a high-priority market in its medium- to long-term growth plan, and it hopes to work with local partners in China to expand its business, production, and research and development bases.

August 15, 2012