Oct. 21, 2011

Toray Industries, Inc.

Toray Draws Up Strategy to Expand Fibers and Textiles Recycling Business

Expects sales to exceed 19 billion yen around FY2020 from 7.5 billion yen in FY2010

Toray Industries, Inc. (Chuo-ku, Tokyo; President: Akihiro Nikkaku; hereinafter referred to as "Toray") announced today that it has formulated a strategy to expand the fibers and textiles recycling business, which is part of the Green Innovation Business Expansion (GR) Project the company has been implementing since April this year.

The fibers and textiles recycling business expansion strategy aims to globally promote viable recycling from the perspective of enabling both environmental conservation and economic efficiency. It aims to expand sales of the business consisting of regeneration type recycling*1 and collection and circulation type recycling*2 from 7.5 billion yen in fiscal year 2010 to 11 billion yen in fiscal year 2013, the final year of Toray’s medium-term management program Project AP-G 2013, and to more than 19 billion yen around 2020.

Under the business expansion strategy, Toray has assigned the brand names ECOUSE™ and CYCLEAD™ respectively to regeneration type and collection and circulation type recycling, and shall promote these brands.

In ECOUSE™ recycling, Toray shall drive forward chemical recycling*3, primarily of polyester filaments, and material recycling*4 of polyester staple fibers.

In CYCLEAD™ recycling, the company shall promote chemical recycling of nylon 6 products using its own collection system and facilities, as well as material recycling of polyester products utilizing ECOLOG RECYCLING JAPAN CO., LTD.’s collection system, and expand the scope of products to be collected for both types of recycling.

Toray plans to convey clearly to the customers the reduction in environmental load of core products of the fibers and textiles recycling business by quantitatively visualizing it using lifecycle assessment (LCA)*5. In addition to uniforms, for which Toray calculated environmental load reduction using LCA, the company shall gradually expand the target of such LCA calculations to its Green Innovation Products in Fibers and Textiles.

Toray positions the fibers and textiles recycling business as an important part of its medium-term management program Project AP-G 2013. The company shall continue to contribute to solutions to intensifying global environmental issues through initiatives involving customers.

The details of Toray’s strategy for expanding the fibers and textiles recycling business are as follows:

1. Outline of the fibers and textiles recycling business expansion strategy
(1) Expand viable recycling globally from the perspective of enabling both environmental conservation and economic efficiency.
(2) Increase sales of the fibers and textiles recycling business 1.5 times the current level to 11.0 billion yen in fiscal year 2013 by promoting regeneration type recycling ECOUSE™ and collection and circulation type recycling CYCLEAD™.
(3) Establish brands for regeneration type recycling and collection and circulation type recycling, ECOUSE™ and CYCLEAD™ respectively, and promote them.
(4) Calculate the impact of environmental load reduction of products based on recycled materials using lifecycle assessment (LCA) and appeal it.

2. Specific activities
(1) Regeneration type recycling ECOUSE™

1) Chemical recycling: primarily polyester filaments
- Expand Japanese and overseas sales for applications including uniforms, sportswear and curtains.
- Study overseas production of yarns based on recycled materials.
2) Material recycling: primarily polyester staple fibers
- Expand the sales for polyester-cotton blend for uniforms in Japan and the Asian region, where demand is expected to grow. At the same time, expand spinning and processing of textiles utilizing overseas bases.

(2) Expand collection and circulation type recycling CYCLEAD™

1) Chemical recycling
- Nylon 6-based products in applications such as uniforms, outdoor wear and sportswear. (To utilize Toray’s facilities and collection system, which have obtained a wide-area certification, a special system under the Waste Disposal Law in Japan.)
- Polyester blend products primarily in applications such as uniforms, sportswear and general apparel. Study new tie-ups with entities outside of the Toray Group.
2) Material recycling
- Polyester products in materials for uniforms and curtains. (To utilize the collection system of ECOLOG RECYCLING JAPAN CO., LTD., which have obtained a wide-area certification, a special system under the Waste Disposal Law in Japan.)

3. Example of environmental load reduction impact (calculation of the reduction impact based on LCA)
Toray calculated the impact using a sample of uniforms entirely made of polyester filaments.
As of 2011, the reduction in CO2 emissions, if all of the 1,000 tons of recycled polyester filaments Toray produces a year is used for making uniforms, is equivalent to the amount of CO2 (approximately 2,500 tons) absorbed by about 180,000 cedar trees in an area equivalent to the size of about 43 Tokyo Domes (a baseball stadium in Tokyo). (About 1kg of CO2 throughout the lifecycle of a uniform (about 0.4kg))

<Glossary>

1. Regeneration type recycling (ECOUSE™)
A recycling process in which leftover materials from the film manufacturing processes, etc. at Toray’s own plants and used PET bottles are used as raw materials for producing fibers, which the company then sells.

2. Collection and circulation type recycling (CYCLEAD™)
A recycling business based on the premise of collecting and recycling used products.

3. Chemical recycling
A recycling process in which used products and leftover materials from manufacturing processes are depolymerized to make monomer raw materials, which are then made into chips and recycled into filaments and staple fibers.

4. Material recycling
A recycling process in which used PET bottles and leftover materials from manufacturing processes are heated to make chips and recycled into filaments and staple fibers.

5. Lifecycle assessment (LCA)
A method to assess a product’s or service’s impact on the environment by calculating the consumption of resources and energy as well as emissions of fumes and wastes, after taking into account its entire lifecycle spanning from mining of materials to manufacturing of materials, production, as well as use and disposal.

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