Asahi Kasei has confirmed that it has entered into an agreement with Teijin Limited to carry out an absorption-type merger between their respective subsidiaries, Asahi Kasei Advance Corp. and Teijin Frontier Co., Ltd. Under the terms of the deal, Teijin Frontier will become the surviving company and will operate as a joint venture owned 20% by Asahi Kasei and 80% by Teijin. The merger is scheduled to take effect on 1st October 2026.
Asahi Kasei Advance functions as a trading company for a broad range of products from the Asahi Kasei Group, including fibres, chemical materials, and construction supplies. The company stated that, given its ambitions for sustained business expansion, it had assessed that integration with Teijin Frontier offered a more promising direction than continuing to pursue independent growth. According to the company, Teijin Frontier’s combined trading and manufacturing capabilities — including strong global procurement networks and expertise in developing high-performance fibres — placed it in a strong position to deliver distinctive solutions across sectors such as apparel textiles and industrial materials.
The stated objective of the integration is to merge the business platforms, sales channels, and customer bases of the two subsidiaries to strengthen competitiveness and support long-term value creation. Both companies indicated that the joint venture would be built on the complementary strengths of Asahi Kasei Advance and Teijin Frontier, providing a more resilient foundation for sustainable growth.
As part of the restructuring, Hangzhou Asahikasei Textiles Co., Ltd., a subsidiary of Asahi Kasei (China) Co., Ltd. involved in the manufacture and sale of textile products, will be transferred to Asahi Kasei Advance prior to the merger.
