HOME > NEWS RELEASE > 2009 > Establishment of a new SPA as a Joint Venture between Flandre Co., Ltd., the Teijin Group, Sumikin Bussan Corporation and Other Partners NEWS RELEASE February 3, 2009 Establishment of a new SPA as a Joint Venture between Flandre Co., Ltd., the Teijin Group, Sumikin Bussan Corporation and Other Partners   Sumikin Bussan Corporation has acquired capital in a "Specialty store retailer of Private label Apparel" (SPA), established by Flandre's parent company, INED Business Fashion Planning (based in Shibuya-ku, Tokyo; president, Takafumi Kurita). In addition to Sumikin Bussan, Teijin Fibers Limited (based in Chuo-ku, Osaka; president, Yoshinaga Karasawa) and N.I. Teijin Shoji Co., Ltd., (based in Chuo-ku, Osaka; president, Junji Morita) of the Teijin Group and Hong Kong knitted products manufacturer Fenix Hong Kong Ltd. (president, Anthony Keung) will provide equity for the founding of the new company. The concept behind the new company is built on the keywords "quality," "price," "security" and "ecology." This is manifest in supplying products that satisfy Japan's unique cultural combination of gentle, suave and sober tastes. Participating enterprises are taking the opportunities presented by the establishment of the new company and their equity participation to form a cooperative system that facilitates coherent development from materials through end products. By reinforcing and expanding market response in the fashion apparel sector, the aim is to construct the ultimate value chain, capable of competing with overseas large-scale SPA brands. Details of the establishment of the new company follow. 1. Background and Objectives   (1)  In recent years, consumers have made their clothing purchases through a diversity of market channels, such as department stores, station building arcades, specialist outlets, shopping malls and e-commerce. This has accentuated the need in the fashion apparel sector for responsiveness to various markets.   (2) Accordingly, INED Business Fashion determined to utilize its core planning competence to make inroads into the emerging SPA sector through the establishment and development of a new company, with equity participation by the Teijin Group, Sumikin Bussan and Fenix Hong Kong.   (3) Teijin Fibers can construct a global materials development and production system utilizing its domestic and overseas manufacturing bases and key expertise in high-sensitivity fashion materials, highly functional materials and eco-friendly materials and, through collaboration with N.I. Teijin Shoji, can access a global network of clothing plants to supply high-quality products at reasonable prices.   (4) As a manufacturing and trading company, Sumikin Bussan applies its established global materials procurement power, its apparel manufacturing network in Japan and overseas and its integrated network spanning production, distribution and marketing to supply high-quality products attuned to the concepts behind the new company.   (5) These merits will enable the new company to create a new product domain that realizes the values imbued in the keywords "quality," "price," "security" and "ecology" and to boost market response in the fashion apparel sector. 2. Development Plan for the New Company   (1)  Store development : Opening of 130 new stores -Five large-scale outlets by the end of 2010, including the Harajuku pilot store -An additional 125 small and medium-size outlets by 2014   (2) Sales targets : First-year sales of ¥1.5 billion for 2010, rising to ¥20.0 billion for 2014 3. Overview of the New Company   (1)  Company name I.T.'S. INTERNATIONAL CO., LTD.   (2) Corporate headquarters 38-9, Sendagaya 3-chome, Shibuya-ku, Tokyo   (3) Date of establishment March 1, 2009   (4) Paid-in capital ¥400 million   (5) Representative Hidetoshi Kurita, President   (6) Shareholders INED Business Fashion 66%, Sumikin Bussan 15%, Teijin Fibers 10%, N.I. Teijin Shoji 5%, and Fenix Hong Kong 4% [ Reference: Overviews of Participating Companies ]    ♦ Flandre Co., Ltd.   Corporate headquarters : 18-11, Minamiaoyama 4-chome, Minato-ku, Tokyo   Date of establishment : January 1980   Paid-in capital : ¥40 million   Representative : Hidetoshi Kurita, President   Business content : Manufacture and sales of ladies' and children's clothing   Net sales : ¥60.0 billion (year ended February 2008)   Employees : Approximately 3,000    ♦ INED Business Fashion Planning   Corporate headquarters : 38-9, Sendagaya 3-chome, Shibuya-ku, Tokyo   Date of establishment : December 2005   Paid-in capital : ¥10 million   Representative : Takafumi Kurita, President   Business content : Design of ladies' and children's clothing   Net sales : ¥1.5 billion (year ended February 2008)   Employees : 17    ♦ Teijin Fibers Limited   Corporate headquarters : 6-7, Minami-hommachi 1-chome, Chuo-ku, Osaka   Date of establishment : January 2002   Paid-in capital : ¥12.0 billion   Representative : Yoshinaga Karasawa, President   Business content : R&D into and manufacturing and sales of polyester products   Net sales : ¥149.0 billion (year ended March 2008)   Employees : 976 (as of March 31, 2008)    ♦ N.I. Teijin Shoji Co., Ltd.   Corporate headquarters : 6-7, Minami-hommachi 1-chome, Chuo-ku, Osaka   Date of establishment : November 1952   Paid-in capital : ¥2.0 billion   Representative : Junji Morita, President   Business content : Sales of textile materials and clothing products, packing materials, construction materials and various machinery   Net sales : ¥276.5 billion (year ended March 2008)   Employees : 598 (as of March 31, 2008)    ♦ Fenix Hong Kong Ltd.   Corporate headquarters : Hong Kong, China   Date of establishment : March 1972   Paid-in capital : US$600,000   Representative : Anthony Keung   Business content : Manufacture and export of knitted products   Net sales : US$61 million   Employees : 120     * The information contained in this news release is true and accurate at the time of publication; however, it may be subject to change without prior notice. 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