Teijin, Jinggong Holding To Develop Polyester Chemical Recycling JV

Japan-based Teijin Ltd. and China-based Jinggong Holding Group have established Zhejiang Jiaren New
Materials Co. Ltd. in Zhejiang Province, China. The joint venture (JV) company will chemically
recycle polyester fiber scraps and used polyester products into dimethyl terephthalate (DMT), which
will then be manufactured into polyester resin and new fibers in a closed-loop recycling system.
Teijin, with a 49-percent stake in the JV, brings its advanced proprietary chemical recycling
technology and business expertise developed while establishing its ECO CIRCLE® closed-loop
recycling system first launched in 2002. Jinggong will own 51 percent of the JV, which anticipates
sales totaling 10 million yen in its first year of business.

The facility, scheduled to open in March 2014, will be Teijin’s first recycling operation
outside of Japan. Total capacity at the plant is 70,000 tons of DMT, with 20,000 tons coming online
initially, and an additional 50,000 tons to be added in a second phase as demand allows. It is
expected that the new facility will manufacture 19,000 tons of recycled polyester fiber in phase

The JV is the first in a cooperative agreement inked between Teijin and the China-based
China Chemical Fibers Association — the nationwide non-profit organization for China’s entire fiber
industry. Teijin reports China is a high-priority market in its medium- to long-term growth plan.

July/August/September 2012