21 October 2012

Toray to Establish Resin Compounding Base in Indonesia

15 October 2012 - Toray Industries, Inc. (headquarters: Chuo-ku, Tokyo) today announced that it has decided to establish a new resin compounding base at P.T. Indonesia Toray Synthetics (ITS), its subsidiary in Indonesia. With the establishment of the facility, ITS will be the first resin compounding base by an engineering plastic manufacturer in Indonesia. 

Toray will invest approximately 600 million yen for installing the nylon and PBT resin compounding facility with an annual capacity of 6,000 tons, which is expected to start operation in November 2013. 

The economy of Indonesia, with a population of 240 million, has been growing at a rate of 6% a year and is the biggest economy in the ASEAN region. Fueled by the progress of motorization, the country’s automobile production is estimated to grow to more than 2 million units in 2020 from 840,000 units in 2011, thus becoming a major automobile production base alongside Thailand. In 2010, Indonesia’s GDP per capita exceeded $3,000 and consumption of electrical and electronic products including home electronics is also expected to expand, and manufacturers have been driving forward localization of production of automobiles as well as electrical and electronic products. Against the background of this prevailing business environment, demand in volume for engineering plastics is expected to grow at an annualized pace of about 9% from 21,000 tons a year in 2011 to 45,000 tons in 2020.

In a bid to expand the business, Toray aims to be the first in capitalizing on the growing engineering plastic demand in Indonesia through the establishment of the nylon and PBT compounding facility at ITS, which has a nylon polymerization facility, and also by providing swift response and meticulous technical service to customers enabled by localization of production. 

As part of growth strategies under the medium-term management program Project AP-G 2013, Toray Group has been driving forward Asia and Emerging Country Business Expansion (AE) Project for actively pursuing business expansion in rapidly growing countries and territories.

The establishment of the Indonesian resin compounding base is part of AE Project. Toray will contribute to economic growth in countries and territories where significant economic growth is anticipated through business expansion while aiming to enable its own sustainable business growth. 

Source: Toray