Japan's second-largest maker of synthetic fibre, Teijin Ltd, said on Tuesday it plans to adopt a holding company structure next year to make it more competitive in a tough business climate.

Under the April 2003 reorganisation, which is subject to approval at the firm's annual general meeting later this year, the new holding company will control nine in-house business groups.

The structural changes came as Teijin unveiled a downward revision in its planned dividend payout for the year to March 31 of 6.5 yen dividend per share, down from its previous seven yen estimate.

Teijin blamed the slide on the economic slowdown in the US on its textile business but added it paid a 6.5 yen dividend per share last year.