Asahi Kasei Advance was established in 2015 as a trading company primarily handling products from the Asahi Kasei Group, such as fibers, chemical products and construction materials. Considering sustained business expansion, it was determined that operation of the business under Teijin Frontier — which combines trading company functions having strong global procurement capabilities and manufacturing functions to develop and produce high-performance fibers — providing solutions across a wide range of fields, including apparel textiles and industrial materials, would be the most promising path forward rather than pursuing independent growth for Asahi Kasei Advance.

The purpose of the announced integration is to combine the business platforms, sales networks and customer bases of Teijin Frontier and Asahi Kasei Advance to drive sustainable growth and maximize corporate value. The strengths of both companies will be leveraged to form a corporate entity with greater competitiveness and a solid foundation for growth, positioned for sustainable value creation.

Hangzhou Asahikasei Textiles Co. Ltd., a subsidiary of Asahi Kasei (China) Co. Ltd., which manufactures and sells textile products, will be transferred to Asahi Kasei Advance prior to the integration. The effect of the integration on the consolidated earnings of Asahi Kasei is immaterial.