Toray to Increase Production Capacity of Nylon Fiber for Automobile Airbags in Thailand To boost production of Nylon 66 yarn by about 7,000 tons a year; facility to start operating in January 2015

Toray Industries, Inc.

Toray Industries, Inc. (headquarters: Chuo-ku, Tokyo; President: Akihiro Nikkaku; hereinafter referred to as “Toray”) today announced its decision to increase the production capacity of nylon fiber used for automobile airbags in Thailand.

Toray will raise the production capacity of Nylon 66 fiber for automobile airbag application at the Ayutthaya Plant of its subsidiary Thai Toray Synthetics Co., Ltd. (TTS) by building an additional production facility. The capacity of the new facility will be about 7,000 tons and it is expected to start operations in January 2015. Once the capacity is increased, TTS’s capacity to produce Nylon 66 fiber will rise by about 40% to 23,000 tons a year. At the same time, Toray Group’s production capacity, combining that of TTS and its Okazaki Plant (Okazaki, Aichi Prefecture), of Nylon 66 fiber for airbag application will expand to about 32,000 tons a year.

Global demand for airbag fabrics is expected to grow at an annual rate of about 7% or more by 2020, along with the growth in four-wheeled vehicle production and rise in ratio of vehicles equipped with airbag in emerging markets led by Asian countries. Toray’s move to increase the production capacity of the nylon fiber is aimed at catering to this vigorous expansion of the global airbag demand.

In 2003, Toray started expanding its airbag business on a global scale. It has established a global integrated production structure starting from production of original yarn to textile, and currently supplies the fiber produced in Japan and Thailand to its textile plants in Japan, Thailand, China and Czech Republic. It also has airbag material-related R&D centers in Japan and China as well as seven marketing bases in Asia, Europe, North and Latin Americas with the Japanese organization serving as the marketing headquarters.

Toray will continue to leverage its respective strengths in quality competitiveness enabled by integrated production from original yarn to textile, global production structure, R&D function, and marketing function to effectively respond to the global needs of automobile and module manufacturers around the world in every level starting from product development to production and supply.

Under the medium-term management program “Project AP-G 2013,” Toray Group aims to become a corporate group that continually expands revenues and profits, and has been pursuing business expansion in growth fields and growth regions. Toray has positioned fiber for automobile airbags as one such important material and will drive forward further business expansion aiming for No.1 share in the market.

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