Seeking further business expansion by merging Daiichi Kasei and Ultrafabrics operations, reorganizing, and transitioning to a holding company.
Since its founding in 1998, Ultrafabrics Inc. has steadily grown its business in the U.S. through exclusive distribution and supply contracts with Daiichi Kasei. As Ultrafabrics initiated a full rollout of business in Europe and was about to speed up expansion in the U.S., we decided in January 2017 to merge the two entities' business to ensure future growth. In order to sustain the equitable partnership between manufacturer and marketer that had contributed to our growth thus far, the merger began with Daiichi Kasei acquiring a stake in Ultrafabrics. Instead of simply combining our production and sales operations, we reorganized to place the two firms under a holding company: Ultrafabrics Holdings Co., Ltd.
The newly combined company has three goals: 1) add more applications through intensified product development, 2) a global product rollout, and 3) establish a global brand. We believe that by sharing information better and by seeking profitability as a single firm, we can shoot for yet greater business expansion, while maintaining our traditional healthy partnership. By welcoming three outside directors to join in managing operations, in addition to Ultrafabrics Inc. founders Clay Rosenberg and Danielle Boecker-Primack, we will run the company in a more transparent and fair manner.
Our three-year medium-term business plan for fiscal 2017 to 2019 places aviation and automotive as core growth areas. Most of the customers in these sectors operate worldwide and don't just want great products -- they require suppliers who can provide sufficient capacity, a steady supply, consistently high quality, and a global supply network. In order to address these demands, we are completing two full production lines at our manufacturing facilities in Japan and working on our supply center in Texas.
Please look forward to the future that the new Ultrafabrics Holdings will shape with innovative leather products.
Representative Director & President
Ultrafabrics Holdings Co., Ltd.