End of an Era! DuPont Sells Business for $12.8 Billion, Teijin Exits

DuPont recently announced that the company has entered into a definitive agreement with TJC portfolio company Arclin to acquire DuPont's aramid business (Kevlar® and Nomex®), with the transaction valued at approximately $1.8 billion (approximately 12.8 billion RMB). The transaction is expected to be completed in the first quarter of 2026, subject to customary closing conditions and regulatory approvals.

After the transaction is completed, DuPont will receive approximately $1.2 billion in pre-tax cash proceeds, $300 million in receivable notes, and a future non-controlling common equity interest in Arclin, currently valued at $325 million, which is expected to represent approximately 17.5% of the shares upon completion of the transaction.

Arclin is headquartered in Georgia, USA, and is a leading materials science company with 18 manufacturing facilities in Canada, the United Kingdom, and the United States. It provides products for industries including construction, agriculture, transportation, meteorology and fire protection, pharmaceuticals, nutrition, and electronics, including urea, melamine, and phenolic polymer systems. TJC is an investment company that, as of June 30, 2025, manages assets totaling $33.2 billion (approximately 236.74 billion RMB) and has invested in more than 85 projects over more than 23 years.

Through this transaction, DuPont further optimizes its new product portfolio, acquires substantial cash for reinvestment, and retains equity participation, achieving multiple benefits. This is also a firm step by DuPont to focus on high-growth areas such as semiconductors, healthcare, and water treatment. It is reported that the spin-off of the electronic business is expected to be completed by November 1. After the spin-off, the remaining industrial sector will be integrated into DuPont.

On the same day, August 29, based on the decision to divest DuPont's aramid business, the global giant Teijin of Japan simultaneously announced that it has decided to transfer its shares in DuPont Teijin Advanced Papers (Japan) Limited (“DTPJ”) and DuPont Teijin Advanced Papers (Asia) Limited (“DTPA”) to DuPont or its designated affiliates. The transaction is expected to close in February 2026 (tentative), with specific financial details undisclosed.

It is reported that DuPont Teijin (Japan) was established in 1994 with an investment of 1 billion yen, with each company holding 50% of the shares. It is engaged in the manufacturing, processing, and sales of synthetic paper containing aramid materials, as well as the sales of cardboard. DuPont Teijin (Asia) was also established in 1994, with each company holding 50% of the shares and an investment of 8 million Hong Kong dollars, engaged in the import and sales of synthetic paper containing aramid materials.

In addition to reasons related to DuPont, Teijin's streamlining of its business portfolio aligns with the company's strategy and represents an important initiative to reallocate resources and focus on key areas for future development. It is reported that Teijin Aramid announced in January this year that due to competitive pressure in Asia, it plans to close its aramid fiber production facility in Arnhem, Netherlands. This is part of a series of cost-cutting measures and is deemed necessary.

As of now, with approximately 1,900 employees and 5 production facilities, the "DuPont era" (from the 1960s to the present) of the world's largest and most renowned aramid business (para-aramid Kevlar® and meta-aramid Nomex®), with a net sales of $1.3 billion (approximately 9.27 billion RMB) in 2024, has come to an end, and the global leader in aramid has changed hands.

In contrast to the "cold treatment" of aramid fiber business by foreign giants, a large number of domestic enterprises are steadily entering the market. In January this year, Sinochem International’s subsidiary Sinochem High Fiber successfully launched its aramid fiber expansion project with an annual capacity of 2,500 tons in one go, bringing the total capacity to 8,000 tons per year, which has been applied to battery box products. In February, Sinopec Yizheng Chemical Fiber New Materials (Ningxia) Co., Ltd. was established, planning an annual production of 4,000 tons of para-aramid fiber. In May, Shenghong Holding Group’s subsidiary Jiangsu Shengbang New Materials successfully launched its para-aramid fiber project with an annual capacity of 5,000 tons in one go. In June, Inner Mongolia Fengshengtai New Materials’ annual production project of 6,000 tons of meta-aramid fiber (Phase I) was put into operation.

In addition to the above, major domestic aramid-related enterprises include: Taier New Materials (16,000 tons each of para-aramid and meta-aramid), Chaomeisi (acquired by Tongyizhong), Zhongfang Special Fiber, Yizheng Chemical Fiber, Jufang New Materials, Hebei Silicon Valley Chemical, and Pingmei Shenma, among others.

At present, there is an overall oversupply in the domestic mid- to low-end market, while there is a shortage in the high-end segment (especially for para-aramid), leading to extremely fierce competition. Taking the industry leader, Taihe New Materials, as an example, after reaching a periodic peak in 2021, its profits have declined year by year. In addition to losses from its spandex business, another reason is that the prices of the two types of aramid fibers have continued to fall since 2023.

By the first half of this year, the company's meta-aramid finally achieved growth in sales volume, revenue, and profit, with prices basically stabilizing at the stage bottom. Prices in the low-end industrial filtration sector also saw a slight increase; however, para-aramid still experienced a decline.

Facing competition, Taihe New Material is currently gaining an edge by leveraging its production capacity and technological advantages, while also fully embracing six major growth areas: new energy vehicles, smart wearables, green manufacturing, bio-based materials, information communication, and green chemicals. Its main downstream aramid products are aramid coated membranes and aramid paper. In addition, technologies such as bio-based aramid fiber development and composite membranes for electrolytic hydrogen production are under research and development.

In the first half of this year, the gross profit margin of Tahe New Material's aramid series for security, information, and new energy industry products was 32.63%, with a revenue growth of 5.36%.

Among them, Minstar, a leading aramid paper company under its umbrella, is the best example of outstanding performance. In the first half of 2025, the company achieved an operating revenue of 237 million yuan, a year-on-year increase of 27.91%, and a net profit attributable to shareholders of the listed company of 63.0278 million yuan, a year-on-year increase of 42.28%. Its products are used in multiple rapidly developing fields such as new energy vehicles, wind power, photovoltaics, energy storage, and AI smart data centers. Moreover, the company has maintained high growth for nearly five consecutive years.

Therefore, in addition to combating "involution," fully embracing emerging industries is the true path. The rise of emerging industries in China will lead the next decade in new materials!