Development of high-performance, high-value-added yarns

「For core aramid fibre products, production for industrial material applications temporarily increased as inventory adjustment came to an end, but production declined because a major product number for protective clothing applications was discontinued.」

「The Spinning Business will further promote the development of high-performance fibers and improve production efficiency by strengthening cooperation with business partners and accelerating research and development, while working to improve margins.」

「Revenue remained at the same level, owing to price revisions implemented from the previous fiscal year and steady orders for protective clothing, the main application for aramid fibre.」

「In the spinning business, we will invest in new equipment to replace some ageing facilities and work to further improve production efficiency, while strengthening initiatives targeting government demand for protective clothing and other products in high-value-added demand fields expected to grow in the future.」

「Total research and development expenses for the cumulative third quarter of the current consolidated fiscal year were ¥5.958 million. In the spinning business, we worked with business partners to expand the range of products manufactured and recorded ¥5.785 million in selling, general and administrative expenses. In other businesses, we worked on research and development of antibacterial and antiviral yarns and recorded ¥173 thousand in selling, general and administrative expenses.」

「In the spinning business, we will further improve the development of high-performance fibres and production efficiency by strengthening collaboration with business partners and accelerating research and development. We will also work to revise processing fees in response to higher raw material and fuel costs, aiming to improve profit margins.」

「For core aramid fibre products, production for material applications declined below plan because of competition from overseas companies. However, as we shifted production toward applications for protective clothing, production volume declined slightly from the previous consolidated quarter, January 2023 to March 2023, to 114 t.」

「To contribute to improved performance, we worked on expanding the range of products manufactured and developing new fields and applications. Total research and development expenses for the consolidated fiscal year were ¥10.163 million. / In addition, we worked on research and development of antibacterial and antiviral yarns and recorded ¥4.155 million in selling, general and administrative expenses.」

「In the spinning business, we are working with business partners to expand the range of products manufactured and recorded ¥2.486 million in selling, general and administrative expenses.」

「In the spinning business, we will develop high-performance fibres by strengthening collaboration with business partners and accelerating research and development, with the aim of establishing our own brand.」

「In the spinning business, we will develop high-performance fibres by strengthening collaboration with business partners and accelerating research and development, while also developing and bringing antibacterial and antiviral yarns to market at an early stage, with the aim of establishing our own brand.」

「In the spinning business, we will develop high-performance fibres by strengthening collaboration with business partners and accelerating research and development, while also developing and bringing antibacterial and antiviral yarns to market at an early stage, with the aim of establishing our own brand.」

「In the spinning business, we worked with business partners to expand the range of products manufactured for protective clothing and high-performance fibres, while also developing spun yarns for new customers and our own distinctive products.」

「In the spinning business, we will develop high-performance fibres by strengthening collaboration with business partners and accelerating research and development, while also developing and bringing antibacterial and antiviral yarns to market at an early stage, with the aim of establishing our own brand.」

「In the spinning business, we have begun trial production of other grades of existing aramid fibre with support from the manufacturer. For the development of new applications, we are currently developing antiviral and antibacterial spun yarns, progressing steadily through industry-academia-government collaboration.」

「Orders for core aramid fibre declined again because of the economic deterioration in the automotive industry, while orders for spun yarns for premium innerwear also remained weak because of the mild winter. In addition, order-related activities stagnated as customer companies refrained from sales activities due to the impact of COVID-19, resulting in an extremely difficult business environment.」

「Aramid fibre, our core product, began to show the effects of the end of Olympic-related special demand and a slowdown in the automotive industry. The long-term decline in polyester yarn accelerated further, while orders for vinyl chloride-based winter-clothing materials struggled to grow because of the mild winter.」

「Orders for aramid fibre, our core product, lost the momentum seen through September and began to slow, due to the slowdown in the automotive industry and the end of the Olympic-related demand surge. Orders for vinyl chloride winter-clothing materials also declined as a result of the mild winter. The decline in orders for these core products prevented us from adequately utilising production capacity, leading to lower revenue. As a result, for the cumulative third quarter of the current fiscal year, revenue in the spinning business was ¥299.141 million, down 8.0% year on year, and operating profit was ¥26.530 million, down 49.2%.」

「Orders remained firm, particularly for high-value-added spun yarn products such as our core aramid fibre and products for high-performance innerwear.」

「Revenue from spun yarns for high-performance innerwear increased 43.1% year on year to ¥21.113 million, maintaining the strong order trend from the previous fiscal year.」

「Supply and demand for aramid fibre, the core product in our industrial materials business, remained tight across applications including automotive-related materials and industrial filters, making it a product with continued growth potential. However, orders shifted to levels aligned with underlying demand compared with the previous fiscal year, and revenue was ¥260.768 million, down 11.8% year on year. For spun yarns for high-performance innerwear, orders recovered after inventory adjustment ended, resulting in revenue of ¥76.548 million, up 81% year on year, with strong performance.」

「Automotive-related orders for aramid fibre, our core product in the industrial materials field, remained strong, but we were unable to secure sufficient production volume for the order volume. Consequently, revenue declined 14.0% from the same quarter of the previous year to ¥193.617 million. We have continued to secure sufficient orders for January–March. Orders for spun yarns for high-performance innerwear also increased overall as the previous year's inventory adjustment progressed, and revenue increased 69.4% year on year to ¥55.483 million.」

「Automotive-related demand for aramid fibre, our core product in the industrial materials field, remained firm. However, orders shifted from the extremely tight supply-demand balance of the same quarter of the previous year to levels aligned with underlying demand, and recognition of revenue from certain products was deferred to the third quarter. As a result, revenue declined 20.0% from the same quarter of the previous year to ¥124.640 million. Meanwhile, revenue from spun yarns for high-performance innerwear increased 60.4% year on year to ¥33.762 million, as orders for products using speciality spun yarns increased.」

「In addition, we were unable to arrange raw materials for spun yarns for high-performance innerwear in time and could not produce efficiently relative to order volumes. Consequently, despite aramid fibre, a core product in the industrial materials field, continuing to perform well, production volume declined 7.3% from the same quarter of the previous year.」

「Aramid fibre, our core product, performed well in the industrial materials field, including automotive-related components and industrial filters, resulting in record-high order volumes.」

「Orders for aramid fibre, a core product in the industrial materials field, increased substantially, and strong orders continued in areas including automotive-related components and industrial filters, following the July–September period. Revenue increased 32.9% from the same quarter of the previous year.」

「Regarding orders, demand for aramid fibre, a core product in the industrial materials field, became extremely tight relative to supply because automotive-related business remained strong. Revenue increased 43.8% from the previous quarter of the previous year.」

「Regarding orders, demand for aramid fibre, a core product in the industrial materials field, became extremely tight relative to supply because automotive-related business remained strong. As a result, aramid fibre revenue increased 43.9% from the same quarter of the previous year.」

「In our industrial materials business, orders for both of our mainstay products, aramid fibre and high-strength fibre, remained strong and increased year on year, resulting in steady performance.」

「In the industrial materials field, orders for both of our mainstay products, aramid fibre and high-strength fibre, had been expected to decline from October onwards as usual. However, new adoptions for automotive-related components and other applications continued from September, increasing order volumes and resulting in strong performance.」

「In this environment, orders for both aramid fibre, our mainstay product in the industrial materials field and a high-performance flame-retardant fibre, and high-strength fibre were initially expected to decline year on year. However, order volumes exceeded expectations, driven by strong performance in applications for automotive parts and the receipt of new orders for development projects.」

「In terms of orders, while securing production of our core high-performance yarns for industrial materials and innerwear, we will expand the range of products manufactured in the existing protective clothing field and explore materials for new fields and applications.」

「As standard products lack price competitiveness, the urgent priority is to develop products for protective clothing and specialised applications, and we will continue developing distinctive products by combining various materials.」