Japan Industrial Solutions invests $98m in Unitika

JIS Fund 1 will purchase 10,000 new class C preferred shares.

Osaka-headquarted Unitika claims to be the leading material manufacturer in Japan. Set up in 1889, the company started as a cotton manufacturer and has since branched out in to other segments. Today, Unitika's core business is the production of polymer materials such as nylon, polyester, PVA fiber, non-woven fabrics and biodegradable materials.

The company's other business lines include: advanced materials, such as fire resistant screens and activated carbon fiber; fiber and textiles; environmental technologies, such as sewage treatment and high speed filtration devices; and health and amenity products such as diagnosing reagent for diabetes patients.

According to a release, the new capital will be used to help Unitika shift away from textiles and focus on its more profitable polymer business. The company is also looking to shed some of its non-core assets.

This is JIS's second transaction in a month. It also agreed to invest JPY2.5 billion in Tokyo Rope - a wire-rope manufacturer - by purchasing 2,500 new class A preferred shares.

Both investments - which are expected to close in July - came from JIS Fund 1. The vehicle launched in October 2010 and currently has $295 million under management. 

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