Tuesday, October 8, 2013
Toray To Build Engineering Plastics Plant In South Korea
TOKYO (Nikkei)--Toray Industries Inc. (3402) will construct a plant in South Korea to manufacture high-performance resin for use in automobile battery and electronics connectors, the company announced Monday.
The company's first overseas facility for polyphenylene sulfide (PPS) will cost 190 billion won, or roughly 17.2 billion yen, and is expected to go on stream in April 2016. Toray's PPS output capacity, both at home and abroad, will jump 50% to 27,600 tons a year.
Demand for PPS, the heat- and chemical-resistant plastic with dimensional stability, is growing in Asia as it is increasingly used as a lighter-weight alternative to metals.
The South Korean plant will offer full-scale PPS production from resin to compounds. PPS processing facilities will begin operation in October 2015.
This past June, Toray boosted PSS output at an Aichi Prefecture plant by 40%. The PPS compound market is estimated to grow more than 8% annually, thanks to the popularity of environmentally friendly cars. The world's PPS leader, Toray aims to lift its global market share by five percentage points to 33% or so in 2016.
(The Nikkei, Oct. 8 morning edition)