Toray to build 20,000 tonne/year PP spunbond unit in China

12 January 2010 09:57  [Source: ICIS news]

TOKYO (ICIS news)--Japanese chemical producer Toray Industries plans to build a 20,000 tonne/year unit producing high-functional non-woven polypropylene (PP) filament fibre in China due to rapidly-growing local demand, the company said on Tuesday.

The yen (Y) 5bn ($54m) plant would be built at the site of the firm’s subsidiary Toray Polytech (Nantong) (TPN) in Nantong, Jiangsu, the producer said, adding that the unit was expected to come on line in March next year.

The start-up of the new plant would increase TPN’s total production capacity of the product, known as PP spunbond, to 38,000 tonnes/year, Toray said.

TPN was established in 2006 and started commercial operations in 2008 to supply PP spunbond in China, where demand was expected to rapidly expand for hygiene, medical, industrial and agricultural applications, Toray said.

Currently, TPN was producing the product at full rate, supported by robust local demand, Toray added.

Toray also produces 50,000 tonnes/year of PP spunbond at another subsidiary, Toray Saehan Inc (TSI), in South Korea, the producer said.

TSI sells the products within South Korea as well as exports them to Japan, China and the ASEAN countries, Toray added.

With the start-up of the new plant at TPN, Toray’s total PP spunbond capacity would increase to 88,000 tonnes/year, making it the world’s number one producer of the product, the firm added.

Demand for PP spunbond for hygiene products such as diapers for infants was growing rapidly in China, and internal demand for these products was forecast to increase to 141,000 tonnes/year in 2013 from 50,000 tonnes/year in 2008, Toray said.

Demand for PP spunbond for medical applications was projected to increase to 18,000 tonnes/year in 2013 from 8,000 tonnes/year in 2008, the firm added.

Overall, the growth rate for performance PP spunbond in China was estimated at over 20% per annum, and demand was expected to continue to increase, Toray said.

($1 = Y92.07)

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By: Tomomi Yokomura
+65 6780 4359



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