Japan-based Rengo's nonwoven unit plans sales, production of sanitary products in Jiangsu, China; production in the meantime to be handled by Wuxi Rengo Packaging, a Chinese unit of Rengo, and its facility will be expanded, upgraded

OSAKA, Japan , May 20, 2013 (press release) – Rengo Co., Ltd. (Head Office: Kita-ku, Osaka; President & CEO: Kiyoshi Otsubo) announces that its wholly-owned nonwoven business subsidiary, Rengo Nonwoven Products Co., Ltd. (Head Office: Soja-shi, Okayama; President: Joji Soda) is preparing to establish a nonwoven sales company and begin local production in Jiangsu, China as the first step towards the overseas expansion of its nonwoven business.

Since its establishment in 1986, Rengo Nonwoven Products has manufactured thermal bonded nonwovens for hygiene products—mainly disposable diapers and sanitary products—and as the current top manufacturer in Japan, has provided high quality nonwoven products that meet various customer needs with skills and expertise regarding nonwoven manufacturing accumulated over its many years in the business.

In recent years, high-level economic development in China has led to increased demand for products such as disposable diapers and further growth in consumption volume is anticipated in the future with switchovers from cloth diapers. Rengo Nonwoven Products has established a wholly-owned sales company for nonwovens in Wuxi, Jiangsu to respond to demand in the hygiene product market in China, which is experiencing remarkable growth.

Meanwhile, the manufacturing of nonwovens will be conducted by Wuxi Rengo Packaging Co., Ltd. (Head Office: Wuxi, Jiangsu, China; Chairman: Yoshitaka Ozawa), a Chinese subsidiary of Rengo. Its plant building will be renovated and, in addition to newly installing nonwoven manufacturing equipment, all products will be supplied to the newly-established sales company.

The first stage of the plan (annual production of 4,800 tons) involves production scheduled to begin from January 2014 and over the next several years, the annual production capacity will be expanded to approximately 10,000 tons.

We will engage in this project as the beginning of measures for future business expansion on a global basis while cooperating with the overall Rengo Group in the nonwovens field as well.

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