Unitika Announces Withdrawal from Textile Biz in Turnaround Plan

   Osaka, Nov. 28 (Jiji Press)--Japan's Unitika Ltd. said Thursday that it will withdraw from the textile business, as part of turnaround efforts with the support of public-private fund Regional Economy Vitalization Corp. of Japan, or REVIC.
   Unitika, which has its roots in the textile business, had submitted to REVIC a restructuring plan including drastic structural reforms for unprofitable operations. The fund told the company the same day that it has decided to provide assistance.
   By withdrawing from its original business and carrying out other reforms to scale down its operations to around half, Unitika, based in the western Japan city of Osaka, aims to make all operations profitable in the fiscal year through March 2028.
   The company will conduct structural reforms mainly in its apparel textile, nonwoven fabric and industrial textile businesses and will withdraw from operations for which it has determined that improving profitability is difficult, it announced.
   Based on the turnaround plan, Unitika will ask its creditor banks to waive debts worth around 43 billion yen. It will receive a roughly 20-billion-yen investment from REVIC through a third-party share allotment scheme.

(2024/11/28-18:21)

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