Toray announced it will sell its 25% stake in Japan Vilene Company (JVC) to Germany's Freudenberg SE for approximately ¥17 billion (about $110 million). This marks the formal conclusion of the nearly decade-long three-way joint venture structure, with Freudenberg becoming JVC's sole owner.
Freudenberg had notified Toray as early as June this year of its intention to exercise the “share purchase option” stipulated in the joint venture agreement. Following multiple rounds of negotiations, Toray expects to formally sign the share sale agreement on December 15, 2025, with the transaction scheduled for completion in February 2026. Freudenberg is currently advancing its internal approval process.
Despite exiting the equity relationship, Toray emphasized it will continue supplying Japan Vilene with materials and products meeting its needs across key sectors including medical, energy, HVAC filtration, and automotive. The supply partnership between the two parties will remain uninterrupted despite the ownership change.
For Freudenberg, this transaction will further strengthen its nonwoven and filtration materials footprint in Asia, holding strategic significance for supply chain integration across automotive, medical, and industrial sectors. As demand for sustainable materials, filtration technologies, and high-performance textiles continues to expand, Freudenberg aims to establish a more efficient decision-making chain and a more flexible global operational system.
For Toray, this divestiture aligns with its long-term strategy to focus on core businesses and optimize its asset structure. However, Toray will continue participating in JVC's upstream and downstream ecosystem as a materials supplier, leveraging its strengths in high-value-added functional materials.
Upon completion of the transaction, Japan's nonwovens industry landscape will enter a new phase, while Freudenberg's influence in the Asian market will be further enhanced.
