Toray to Boost Carbon Fiber Output in Japan

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Toray Industries Incorporated (TYO:3402) (Tokyo, Japan), one of the largest carbon fiber producers in the world and the largest carbon fiber producer in Japan, is looking to revive expansion plans for its Masaki site in the Ehime prefecture. A recovery in demand for carbon fibers, which is often used to reinforce material for automobile and aircraft manufacturing, has reportedly picked up, and the addition will boost Toray's overall capacity to nearly 19,000 tons per year. Toray currently holds a 34% share in the global carbon fibers market.

Originally, the 1,000-ton-per-year addition was to begin operations in 2009, but the onset of the Lehman Brothers shock forced Toray to suspend construction. Estimates place completion of construction in the third quarter of next year, with a total investment value approaching $150 million. The Ehime complex's capacity will be boosted to 8,300 tons per year.

In other ventures, Toray, through its subsidiary in South Korea, is planning to build a carbon fiber plant in Gumi, South Korea, approximately 150 kilometers southeast of Seoul. When it's completed at the beginning of 2013, the plant will have an initial capacity of about 2,000 tons per year and cater to the growing domestic South Korean demand for carbon fiber. South Korea currently imports the majority of its carbon fiber.

Toray is also planning to team up with Daimler AG (FWB:DAI) (Stuttgart, Germany), maker of BMW automobiles, in order to produce lightweight components for cars, such as rooftops. Carbon fiber rooftops reduce the overall weight of the car, thus improving gas mileage and the center of gravity. This represents Toray's first move into the automobile industry.

View Project Report - 300027110

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.