Toray to invest Y20bn in Aichi auto/aero parts plant

20 November 2007 10:48  [Source: ICIS news]

TOKYO (ICIS news)--Toray plans to invest a total of yen (Y)20bn ($181m) to convert its Nagoya plant in Aichi prefecture into the company’s stronghold for automobile and airplane applications, a company spokesman said on Tuesday.

 

Toray also plans to triple sales of the automobile application business, a spokesman from the Japanese chemical producer added.

 

The spokesman said the company planned to build facilities to produce moulded components at the plant, but details such as capacities were yet to be decided. 

 

The automobile and aircraft industries are showing marked growths in the region, which Toray hoped to exploit by concentrating its development and manufacturing functions in the Chukyo industrial area (an area around Nagoya).

 

As a first step towards such efforts, the company had on Monday started construction of an Y2.5bn automotive centre which would open in June 2008 at the same location, the spokesman said.

 

The centre would focus on development for such technologies as next-generation auto parts for hybrid vehicles and fuel-cell vehicles and adopting non-petrochemical-based materials, the company said.

 

It would also have injection moulding equipment, film decorative moulding equipment and various joining devices. Capacities were not disclosed, however.

 

By leveraging the automotive centre, the company aimed to expand sales of the automobile application business to Y350bn in 2015 from Y124bn in 2006, the spokesman said, without disclosing profits for 2006.

 

In addition, the company would also review its manufacturing functions and planned to establish a production system for resins, carbon fibre composite materials, which are used for airplane production, and high-performance chemical products.

 

The structural reform of Nagoya plant is expected to be completed in 2010.

 

Toray has signed an agreement with The Furukawa Electric Co to cooperate in sales of foam polyolefin in China to increase sales of both companies’ products, the producers said in a joint statement on Tuesday.

 

Furukawa’s subsidiary in Tianjin would import Toray’s products and sell them in China, it said.

 

Toray produces foam polyethylene (PE) and foam polypropylene (PP) for automotive applications, while Furukawa’s foam PE, PP and other foam polyolefins are mainly used in construction and industry materials.

 

($1 = Y110)

By: Tomomi Yokomura
+65 6780 4359

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