Building on a February agreement to combine their international polyester film businesses in an equally owned venture (see Japan-U.S. Business Report No. 354, March 1999, p. 2), TEIJIN LTD. and E.I. DUPONT DE NEMOURS & CO., INC. will form a company before yearend to make and market polyester filament yarn in North America. This deal, however, involves a third partner, Mexico's ALPEK S.A. DE C.V. DuPont will own half of the unnamed firm; Teijin and Alpek will split the other half. The joint venture will incorporate DuPont's Dacron polyester filament factories in Cape Fear and Kinston, North Carolina. It also will include the polyester polymer, filament and textured yarn facilities in Monterrey, Mexico owned by Teijin and Alpek. That simultaneously announced joint venture will be formed by Teijin buying a 50 percent stake in the existing Alpek operation. The DuPont-Teijin/Alpek business will have more than 850 million pounds of capacity, about three-fourths of which is in North Carolina, and annual revenues on the order of $600 million. Teijin, Japan's top polyester producer, generates roughly 40 percent of its revenues from this filament. However, the company reportedly has only about 4 percent of the world polyester filament market, in part because it has no North American production base.
An exchange rate of ¥120=$1.00 was used in this report. aaaaa