TOKYO (Dow Jones)--Mitsubishi Rayon Co. (3404.TO) said Monday it has decided to sell a wholly owned acrylic fiber-making unit in China, as part of restructuring in its textile business amid a falloff in global demand.

The Tokyo-based textile maker said it will sell 75% of Ninbo Rayon Acrylic Fibers Co. to Nantong Zhongxin Textile and Dyeing Co. It will sell the remaining 25% to Hong Kong-based Fordking Ltd. The combined value of the transactions, scheduled by the middle of November, will amount to roughly Y1.5 billion.

Mitsubishi Rayon is in the midst of restructuring its acrylic fiber business, including reducing production at a domestic plant and suspending operations at the Chinese unit since May.