28 April 2011 10:42 [Source: ICIS news]
SINGAPORE (ICIS)--Japan’s Toray Group will invest yen (Y) 5bn ($60.8m) to build a 20,000 tonne/year high-performance polypropylene (PP) spunbond facility at Tangerang in Indonesia’s Banten province to meet the rising demand for the product, a company official said on Thursday.
Full-scale operations at the facility are expected to begin in June 2013, the Japanese chemical producer said in a statement on Thursday.
The company currently runs a 43,000 tonne/year PP spunbond plant in Seoul, Korea, and another 38,000 tonne/year plant in Nantong, China, it said.
Upon completion, the facility will bring Toray’s total PP spunbond production capacity to about 121,000 tonnes/year, according to the statement.
The facility is part of Toray’s strategy of tapping into the burgeoning economies of Asia and other emerging countries to continually expand its revenue and profits, the statement said.
PP is used in the manufacture of disposable baby diapers and demand for the product in The Association of South East Asian Nations (ASEAN) is expected to grow to about 84,000 tonnes/year in 2015 because of the region's high economic growth, the company said.
“Particularly in Indonesia, the market for disposable baby diapers is estimated to grow at a pace of 14% a year, increasing approximately from 1.9bn diapers in 2010 to 3.7bn diapers in 2015,” Toray said.
The new facility will be established under Toray Polytech Jakarta (TPJ), a joint venture between Toray Industries and Toray Advanced Materials Korea.
Toray currently markets its PP spunbond material in Japan, Korea, China and the ASEAN countries.
($1 = Y82.21)
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