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Monday, March 28, 2011

Toray to Build Carbon Fiber Plant in S Korea

Toray Industries Inc. has decided to construct a carbon fiber plant in South Korea at a cost of approximately 10 billion yen. The plant will be the first overseas carbon fiber production base set up by a Japanese company outside the U.S. and Europe. Toray aims to launch operations at the new facility between the latter half of 2012 and 2013.

With the expected increase in the Asian market demand for carbon fiber for PC parts and automobiles Toray hopes to gain by setting up a production base in the region.

Toray's three existing bases in Japan, the U.S. and France produce an annual 17,900 tons of carbon fiber. It recently decided to boost capacity at its domestic Ehime plant by 1,000 tons. But citing concerns that its supply capacity would still be insufficient, Toray will build a 1,800 ton to 2,000 ton facility in South Korea. A South Korean site would also serve as an export base for China, where demand for use in auto parts is soaring.

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