17 February 2014 12:40 [Source: ICIS news]
LONDON (ICIS)--Toray Industries has acquired a 400-acre plot of commercial land in South Carolina for future business expansion in the US, the Japan-headquartered chemicals producer said on Monday.
The company is also planning to invest Japanese yen (Y) 100bn ($983.2m) in building up its US operations by 2020, the company added.
Located in Spartanburg County, the site is to be developed into Toray’s advanced materials business base in the country. The company attributed the decision to the drop in energy costs in the US as a result of the shale gas boom.
“The [US] is expected to regain its industrial competitiveness on the back of shale gas/oil revolution and the resulting revival in manufacturing. It is going to be the key market for Toray’s business expansion,” the company said.
Toray added that developing technologies in the aircraft and energy-related industries are likely to fuel demand for carbon fibre composites, while the US’ position as a gateway to Latin America was also a factor in the company’s expansion plans.
The land purchase is part of the company’s medium-term expansion strategy for the period up to 2016, to be published in full in April this year. Toray added that it intends to promote “organic collaborations among its overseas bases as well as the expansion of new markets”.
($1 = Y101.71)
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