| Apr. 18, 2006 Toray Industries, Inc. Toray Plastics (Malaysia) Sdn. Berhad |
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Toray to Increase Production Capacity of ABS Resin Toyolac* in Malaysia -Total Investment of 10 Billion Yen; to Begin Local Production of Transparent ABS Resins - |
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| Toray Industries, Inc. announced today that it will enhance
its production facility for ABS resin, Toyolac*, in Malaysia. Toray also decided
to begin the production of transparent grade ABS resins in Malaysia. Along with
increasing the annual production capacity of Toyolac* by 110,000 tons at its
Malaysian subsidiary, Toray Plastics (Malaysia) Sdn. Bhd (TPM), based in Penang,
Malaysia, the production of transparent grade and other high value-added products
will also start at the subsidiary. The total investment amounts to approximately
10 billion yen and the commercial operation is expected to begin from March 2008.
With this expansion, TPM’s production capacity will increase by 50% to
330,000 tons per year and Toray group’s total production capacity, including
that of the Chiba Plant (Ichihara, Chiba Prefecture), Toray’s Toyolac*
production base in Japan, will increase to 402,000 tons per year. The enhancement of the production facility announced this time is a strategic investment made in response to the growing Asian demand for ABS resins and the diversification and the increasing sophistication of the market. The move is aimed at strengthening the global operation of Toyolac* business from both aspects of volume and quality through the establishment of a stable supply structure for TPM and the enhancement of its product line with the introduction of the transparent grade products. Given the economy of scale ensured by the annual production capacity of 330,000 tons and with its compound resin capability as well as the technical service and the independent development capabilities at its Technical Center established in March 2005, TPM is focusing on the development and the sales of specialty products to further consolidate the status of Toyolac* brand in the Asian ABS resin market. Furthermore, with the coming on stream soon, Toray BASF PBT Resin Sdn. Bhd. (TBPR) plant based in Pahang, Malaysia, Toray’s 50-50 joint venture with BASF AG of Germany, TPM, as the marketing base of Toray’s resin business for the ASEAN region, will embark upon the development of new markets and the expansion of its entire business in addition to ABS resins. The Chiba Plant will further enhance its role as the global headquarter for the development and the production aspects of Toyolac*, leveraging on its expertise in product development and manufacturing process technology. The plant will accelerate its effort in a structural shift towards the development of advanced applications and highly efficient production to respond to the requirements of the Japanese market characterized by its highly sophisticated and multi-functional applications and small-lot diversified products. At the same time, it aims to expand global sales of specialty grade products. Along with the establishment of the stable supply structure, Toray plans to optimize the global operation of its Toyolac* ABS resin business. Besides the functional enhancement of the operations in Japan and Malaysia, Toray will promote the production-sales cooperation with its group compound product bases such as Toray Plastics (Shenzhen) Ltd. (TPSZ) and Thai Toray Synthetics Co., Ltd (TTS) while promoting joint research and development with Toray Fibers & Textiles Research Laboratories (Shanghai) Co., Ltd. (TFRC) in China. Toray aims to establish a business structure that will allow the company to swiftly and appropriately respond to the requirements of the international customers operating in the booming Asian region as well as the local customers by integrating the strengths of its group plastics business. The global demand for ABS resins is estimated to be about 5.8 million tons a year (2005), and is expected to continue to enjoy a growth exceeding 5% per year in the future. In ASEAN region and China, which together account for 3.3 million tons of the total demand, the local production by automobile, home electronics and OA equipment manufacturers is growing and by 2010 the demand in the region is expected to rise to 4.5 million tons, or 65% of the global market. At the same time, along with the increasing sophistication in end products, the demand for specialty products with properties such as heat resistance, plating and painting are on the increase. Toray has positioned the ABS resin Toyolac* as a core product of its resin product line along with the engineering plastic products such as nylon, PBT, PPS and LCP. The company intends to further expand the group’s resin business by enhancing the global operation of Toyolac* with focus on strengthening the function of TPM as its overseas base and capturing the growing market. [Reference] Toray Plastics (Malaysia) Sdn. Berhad (TPM) |
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*Note: Information as of April 2006. After the planned expansion the details will be as follows
“ABS Resin” Abbreviation of acrylonitrile butadiene styrene. Widely used in products including auto and two-wheeler parts, home appliances such as washing machines and vacuum cleaners, office automation equipment and general merchandise. Different grades include coated, painted, heat resistant and transparent. |
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