Kyoeisha Chemical will withdraw from the textile chemical business on December 1 and transfer the distributorship of the business to Hokko Chemicals of Wakayama. Kyoeisha Chemical is building a plant in Shiga to expand production of coating additives and in Taiwan for metallic processing agents, concentrating management resources on functional chemical products and new business divisions as well as those above mentioned businesses.

Hokko Chemicals has concentrated on production and sales of certain textile chemicals so far, but the transferred textile chemical items from Kyoeisha Chemical will make the company a comprehensive textile chemical manufacturer. Many people in the industry expect that the company will move into a global market like other textile chemical manufacturers with this transfer as a turning point, while the company has projected an image of focusing on domestic sales up to now.
In regard to these expectations, the president of the company, Mr. Mitsutoshi Kitamura, said, "Since we are still in the process of business transfer from Kyoeisha Chemical, future prospects will be decided after December."