Teijin Aramid adapts its organization to a changing market

Teijin Aramid, producer of high-performance aramid fibers, has announced improvement measures in response to market conditions. These forward-looking adjustments include targeting growth markets, optimizing processes further, and strategy adjustment. Consequently, the number of jobs will be reduced by ~15% over the coming years. Furthermore, Teijin Aramid will start developing the design principles for streamlining the organizational structure, with the possibility of further reductions not being eliminated. Teijin Aramid is committed to building a healthy future in the Netherlands.

Adjustments for a healthy future

Due to the current market conditions and increased competition, cost-cutting measures are necessary to keep Teijin Aramid profitable. The changes will begin in 2025, with full implementation in subsequent years. The measures focus on several areas, including the intended closure of the production site in Arnhem - Kleefse Waard, evaluation of the international location structure, adjustments in strategic direction, and a strong focus on cost-effectiveness.

Engagement with Works Council and unions

Conversations with the Works Council and trade unions have started. Teijin Aramid plans to rightsize the organization through natural attrition, limiting temporary and agency workers and automation of processes. Compulsory layoffs cannot be ruled out.

"After this set of measures, Teijin Aramid will return to profitability in the long term. We provide high-quality, market relevant products that are in demand in multiple applications globally. Despite the current challenging conditions, we remain confident in a prosperous future for our company."

 Peter ter Horst, CEO at Teijin Aramid.

Growth for the future

Teijin Aramid is currently facing increased competition, especially from Asia. Additionally, it is expected the demand for aramid will stagnate in the coming years due to the slowdown of the global economy. This puts pressure on the selling price. At the same time, energy costs and labor costs are rising, which increases the cost price. Teijin Aramid is confident in achieving profitable growth in the long term. To this end, Teijin Aramid is focusing on more efficient production and growth scenarios, in both existing and new markets that offer a positive outlook.