Toray Holds Opening Ceremony of New Airbag Nylon Fiber and Fabric Plant in Mexico

Toray Industries, Inc.

Toray Industries, Inc. (headquarters: Chuo-ku, Tokyo; President: Akihiro Nikkaku; hereinafter referred to as "Toray") announced today that Toray Advanced Textile Mexico, S.A.de C.V. (headquarters: El Salto, Jalisco, the United Mexican States; President: Kiyoshi Akazawa; hereinafter referred to as “TAMX”), its automobile airbag nylon fiber and fabric manufacturing and distribution subsidiary in Mexico, held an opening ceremony for its new plant on Tuesday, January 23, 2018.
The ceremony was attended by about 100 guests led by Mr. Juan Diaz Mazadiego., General Director of foreign trade of Ministry of Economy, on behalf of Mexico’s Economy Minister Ildefonso Guajardo, Mr. Aristóteles Sandoval, Governor of the State of Jalisco, Ambassador Yasushi Takase from the Embassy of Japan in Mexico and Consul General Osamu Hokida.

The new plant is the Toray Group’s first integrated production facility spanning from automobile airbag yarn to fabric, and is the production base primarily for Americas. It completes the Group’s global integrated production system from yarn to fabric covering all regions of the world including Asia, Europe and Americas, giving the Group three airbag fiber manufacturing bases and six airbag fabric manufacturing bases.

Mexico has been rapidly growing as an automobile production base by leveraging the wide-ranging free trade network and geographical proximity to the United States. The Toray Group made a full-scale entry into Mexico with its purchase of Zoltek in 2014 and has been actively developing its carbon fiber and resin businesses as the base primarily for Americas.
Toray established the TAMX plant to respond to demand expansion in Americas, which is one of the world’s major airbag markets. TAMX further strengthens Toray’s global production system that supplies airbag fabric of the same quality from all bases in a timely manner. It will also accelerate Toray’s business expansion leveraging its development capability nurtured by engaging in the entire process from yarn to fabric, and the Group aims to acquire the largest share in the global airbag fabric market in 2020.

As part of the basic strategy promoted under the medium-term management program Project AP-G 2019, Toray pursues the expansion and advancement of global business and aims to expand its business globally by capturing profit opportunities in growth countries and regions. Toray positions the automobile airbag business as one of these priority businesses and will pursue further business expansion in it.

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〈Summary of President Nikkaku’s speech at the opening ceremony〉

Time and date: from 13:30 to 14:45, Tuesday, January 23, 2018
Venue: the ceremony site at the new plant of TAMX

-The Toray Group is promoting the expansion of its global business with the resolution to “become a global top company of advanced materials.” As for Mexico, we made a full-scale entry with the acquisition of Zoltek in 2014 and has been expanding its carbon fiber business and developing the resin business. With the establishment of TAMX, the cumulative investment, since our entry in Mexico, exceeds 300 million USD.

-We established TAMX with the aim of building an integrated production system spanning from yarn to fabric in Americas, which is a prominent airbag fabric market in the world, and capturing the robust demand for airbag fabric. With the addition of TAMX, the Toray Group as a whole grew to have three airbag nylon fiber production bases in Japan, Thailand and Mexico and six airbag fabric production bases in Japan, Thailand, China, Czech, India and Mexico. This completed a global integrated production system that covers the process spanning from yarn to fabric and all regions of Asia, Europe and Americas.

-The strengths of Toray’s airbag business is the global production system that supplies airbag fabric of the same quality from its bases around the world in a timely manner and its development capability nurtured by engaging in the entire process starting from yarn to fabric. We will accelerate the business expansion by leveraging these strengths and aim to grab the largest share in the global airbag fabric market.

-The Toray Group’s business expansion, including establishment of TAMX, owes significantly to the strong support of the Mexican government, the State of Jalisco and the El Salto city and I would like to express our sincere gratitude to the officials. Moreover, I would like to once again request your continued support regarding the ongoing business expansion.

-It is Toray Group’s basic policy to “contribute to industrial promotion, export expansion and improvement of technological level of the country from a long-term perspective” for running our overseas businesses. We believe that the development of the primary materials industry in Mexico is significantly meaningful for the upgrading of the industrial structure of the country. Going forward, we will promote business expansion in Mexico and contribute to the local economy.