Asahi Kasei Advance will be merged with Teijin Frontier to create a joint venture, in which Teijin will hold 80% ownership and Asahi Kasei will hold the remaining 20%.

Asahi Kasei Advance was formed in 2015 as a trading company that mainly deals with products from the Asahi Kasei Group, including fibres, nonwovens, textiles, chemical items, and construction materials.

Teijin Frontier is also a trading company, known for its strong global sourcing abilities and manufacturing systems that help develop and produce high-performance fibres.

Both Japanese companies believe that merging will be a better way forward than trying to grow Asahi Kasei Advance separately. By combining their strengths, they aim to build a more competitive company with a stronger base for future growth.

Hangzhou Asahikasei Textiles, a Chinese unit of Asahi Kasei that makes and sells textile products, will be moved under Asahi Kasei Advance before the merger takes place.