Following an announcement late last year that it would exit its fiber and textiles businesses, Japanese nonwovens producer Unitka has reportedly sold its Japanese-based spunbond and spunlaced nonwovens operations in two separate operations.
 
Unitika’s Japanese polyester spunbond business, capable of making 10,000 tons of material per years, is being transferred to Seiren, whose main business is dyeing woven fabrics. Sieren, which is also engaged in a wide range of businesses, including the production of synthetic fibers and automotive interiors, reportedly plans to revitalize the business and develop chemical recycling at Unitka’s Okazaki Plant
 
Additionally, Unitika has sold its 7000-ton-per-year spunlace business to Cotex. Japanese hygiene machinery manufacturer Zuiko established Cotex in 2024 with a focus on developing and manufacturing cotton products for hygiene applications.
 
The integration of Unitika’s spunlace technology, will allow Cotex to expand into the manufacturing and sale of cotton-based spunlace nonwovens, targeting both existing customers and new opportunities in domestic and international hygiene markets. The transferred business recorded net sales of approximately $26 million for the fiscal year ended March 31, 2025. The transaction is scheduled to be complete in December.
 
Tusco, Unitika’s Thailand-based polyester spunbond business has not yet found a buyer.

Unitika’s decision to exit the textiles business was reportedly after growing competition from Chinese companies increased the company’s losses for two straight years, significantly shrinking its equity. Unitika began efforts to revamp its struggling fiber-related operations in 2014, including moving production to Thailand and cutting costs, but the efforts have been unsuccessful, especially given the recent weakness of the yen.

The company plans to focus on food packaging films and other polymer products that are experiencing growth in Southeast Asia and other markets.