The Japanese company Teijin Ltd., headquartered in Tokyo, announced plans to establish a joint venture with the Chinese company Jinggong Holding Group to create a company called Zhejiang Jiaren New Materials Co., Ltd., in Shaoxing, Zhejiang Province, China, one of China's largest production bases for fiber products.

The joint venture is expected to begin in September, 2012. Through the joint venture, the two companies will chemically recycle polyester, as well as manufacture and sell the resulting fibers, with the aim of establishing a closed-loop recycling system in China similar to Teiji...