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Toray to Expand Air Filter Business in Republic of Korea, Establish Joint Venture Company

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Oct. 16, 2018

Toray Industries, Inc.

 Toray Industries, Inc. (headquarters: Chuo-ku, Tokyo; President: Akihiro Nikkaku; hereinafter referred to as “Toray”) announced today its decision to establish a joint venture company in Republic of Korea together with MCM Co., Ltd. (head office: Jinchun-kun, Republic of Korea, hereinafter referred to as “MCM”), a company under the Chung Ho Nais Group, which is engaged in the sales of water purifiers and air cleaners. The company will be capitalized at 6 billion won (about 600 million yen), with MCM having a 60% stake and Toray investing 40%.
 The new company, named M&T Engineering Co. Ltd. (hereinafter referred to as “M&TE”), will combine the assembling and processing as well as automation expertise of MCM with Toray’s integrated design and development technology starting from fibers and filter materials to assembled units, so as to build a local production setup for high performance filters necessary to expand the business in Republic of Korea as well as to supply to Korean manufacturers with global presence.

 The Chung Ho Nais Group has a high share of the South Korean water purifier market, and has a broad business base with sales to major global players in the country in addition to exports to some 60 countries.
 Toray has been producing non-woven fabric for air filters since 2012 at Toray Fibers (Nantong) Co., Ltd. (TFNL), its fiber production base in China, building a local production and supply structure adapted to the Chinese GB standards* so as to contribute to the measures against atmospheric pollution, which has become a serious social issue.

 M&TE, the new company, will assemble filters that use TFNL’s non-woven fabric for high-performance filters, thus accelerating the sales expansion in the country as well as around the world by directly supplying to major home electronics and automobile manufacturers.

 The global demand for air filters is expected to continue growing primarily in Asia and other emerging countries. In particular, the Korean market is an important target, given the anticipated spreading of the filter business to other parts of the world led by global players in various fields such as automobile and home electronics, in addition to the steady demand for the air cleaner application.
 Toray and MCM will position M&TE as the base for global expansion of the air filter business, and along with strengthening the response to the local customers, will implement a strategy that will leverage the superiority of both companies while identifying new areas of applications.

*Chinese GB standard
Chinese national standards related to air cleaner initial performance and performance life.

Company profiles

1. M&TE
(1) Name M&T Engineering Co., Ltd.
(2) Location Inside MCM Co., Ltd. site in Jinchun-kun, Republic of Korea
(3) Representative Jinsoo Kim, Representative Director & President
(4) Business Assembly and sales of air filters
(5) Capitalization 6 billion won (600 million yen)
(6) Established October 2018
(7) Investment MCM – 60%, Toray – 40%
2.Toray Industries, Inc.
(1) Location Chuo-ku, Tokyo
(2) Representative Representative Director and CEO Akihiro Nikkaku
(3) Business Fibers and textiles, functional products, carbon fiber composite materials, environment and engineering, life science, and other manufacturing and sales.
(4) Capitalization 147.9 billion yen
(5) Established 1926
(6) Sales 2,204.9 billion yen (the fiscal year ended March 2018)
3.MCM Co., Ltd.
(1) Location Jinchun-kun, Republic of Korea
(2) Business Manufacturing and sales of water purifier filter, RO filter, etc.
(3) Capital 1.5 billion won
(4) Established 2009
(5) Sales 46.3 billion won (2017)

Celemony held on 15th October, 2018
Celemony held on 15th October, 2018