Tokyo Japan, October 6, 2006--Mitsubishi Rayon Co announced Thursday that it has agreed to sell the carpet production division of its subsidiary Mitsubishi Rayon Carpet Co. to Toli Corp, according to Asia Pulse.
Under the terms of the agreement, Toli and the acquired carpet-production division will set up a joint venture company in November that will be owned 80 per cent by Toli and 20 per cent by Mitsubishi Rayon.
Mitsubishi Rayon Carpet is primarily a maker of office carpets, and although demand remains solid, the high price of nylon and other petrochemical-based materials has eaten into profits.
Toli will manage and operate the acquired carpet production division to reduce costs and improve profits.
