Asahi Kasei Fibers and Teijin Fibers to dissolve PTT joint venture

Asahi Kasei Fibers and Teijin Fibers have announced to dissolve Solotex Corp., their joint venture for polytrimethylene terephthalate (PTT) fiber operations, by the end of March 2010. Solotex Corp. was established in May 2002 as a 50:50 joint venture combining the PTT fiber operations of Asahi Kasei Fibers and Teijin Fibers. The decision for dissolving the JV was taken as the companies could not reach the market scale anticipated and do not see a viable future for the same, more so during the current economic slump. Post-dissolution, Teijin Fibers is mulling the possibility for carrying forward the PTT venture with an independent PTT fiber business. On the other hand, Asahi Kasei Fibers has announced to discontinue both production as well as sale of PTT fibers after the JV is dissolve.