Toray Industries to install new spunbond line in Korea
Toray Industries will install a 18000-ton spunbond polypropylene line in Korea. This high performance line will be housed in a new factory at the company’s Gumi site and will begin operation in Aril 2018
Based in Korea, Toray has not added a polypropylene spunbond line in Korea in a number years and reports its output in the country at 43,000 tons. Meanwhile the company has instead focused on expanding its output elsewhere in Asia, notably in China, where it is currently building a fourth line, and Indonesia, where it operates two spunbond lines.
Toray is investing in Asia under the Medium-Term Management Program, Project AP-G2016 launched in fiscal year 2014, where it has vigorously implementing the four group-wide projects aimed at expanding business in growing fields as well as countries and regions and enhancing competitiveness. The decision to increase its polypropylene spunbond production capacity is promoted as a part of the Asia, America and Emerging Country Business Expansion (AE-II) Project to capitalize on the growth of Asia, Americas and emerging countries in other regions, where significant economic expansion is expected, as well as of Life Innovation Business Expansion (LI) Project, which calls for improving the quality of health care, easing the burden at medical institutions and contributing to health and longevity. The Toray Group will actively promote business expansion in growth fields as well as in various countries and regions with all its strength and aim for continued growth.
Demand for disposable diapers for babies and toddlers has been rapidly increasing in ASEAN member countries, India and China, as the lifestyle of people in these countries improves against the backdrop of high economic growth and rising national income. Especially in China, which is the largest market, import of high-end products made in Japan and Korea has been sharply expanding as the people increasingly opt for safe products and major sanitary products manufactures with global presence have been declaring plans in succession to expand plants producing products for the Asian countries. Given this situation, demand for polypropylene spunbond, which is the main raw material of disposable diapers, is expected to grow at an annual rate of about 9% from 500000 tons per year in 2015 reflecting expanding demand for diapers for senior citizens in developed countries in addition to that for babies and toddlers in emerging nations, and the material’s supply is forecast to fall short, according to Toray.