Japanese fibre maker Teijin Limited is aiming to grow its presence in China through a tie-up with the China Chemical Fibers Association (CCFA) - an agreement that is already poised to set up a closed-loop system for recycling polyester.

Under the deal, Teijin group companies and major Chinese firms will work together to add value and improve production efficiency for Chinese fibre products. They also hope to develop high-performance fibres and sustainable solutions.

The closed-loop recycling system will be launched with Zhejiang Jiabao New Fiber Group Co Ltd, which is based in Shaoxing, Zhejiang province. It will be based on Teijin's Eco Circle chemical recycling technology.

China is a key market in Teijin's growth plans. Howerver, while the country produces more than 60% of the world's chemical fibres, fuel and raw material prices have been rising. At the same time, energy savings and waste reduction are key goals for the sector under China's 12th five-year plan through 2015.