Toray Industries, Inc.
Tokyo, Japan, September 21, 2022 – Toray Industries, Inc., announced today that it intends to lift the prices of nylon 66 yarn and fabric for automotive airbags by up to 35% for shipments from October 1 this year.
This move is because prices have remained high for nylon 66 polymer, a principal material in automotive airbag yarns and fabrics. This is amid rising demand from a global economic recovery and surging crude oil prices stemming from supply concerns as a result of the Russian invasion of Ukraine. Another factor is that the company expects the cost of producing yarn and fabrics to keep climbing owing to further price hikes that started last year for such inputs as secondary materials, fuel, and transportation.
The U.S. dollar’s sharp appreciation since April this year has driven procurement costs higher for Toray’s airbag business, with the impacts of exchange rate fluctuations from the yen’s depreciation exacerbating the situation by affecting export prices to Japanese market.
It was against this backdrop that Toray is undertaking a project under Project AP-G 2022, its medium-term management program, to bolster its total cost competitiveness by slashing expenses and streamlining fixed and variable spending.
The company has nonetheless found its savings initiatives unable to offset higher current cost increases. It accordingly has to raise prices to maintain consistent quality and develop and commercialize products that deliver even higher value.