Toray invests Bt17 billion for Thai production base in Asean
- March 22, 2013
The Nation March 22, 2013 1:00 am
Toray Industries has allocated Bt17 billion to Thailand this year as well as significant capital for Indonesia and Malaysia under its plan to grow its textile and fibre business in Asean and rest of Asia.
Chief executive and chief operating officer Akihiro Nikkaku told a press conference on Wednesday that Thailand will be positioned as a regional production hub for plastics and chemicals mainly to serve the burgeoning automobile industry.
A plant will be constructed in Chon Buri’s Sri Racha district to support the auto industry’s expansion. Belonging to Carbon Magin (Thailand), the facility will see its annual capacity rise from 1,600 tonnes to 2,200 tonnes.
Toray is also considering expanding its carbon-fibre composite materials business for auto and other applications, in line with growing demand for lighter car parts.
Toray Group of Companies has eight plants in Thailand operated by five companies. The new investment was committed despite the devastation from the great flood of 2011, when Thai Toray Synthetics’ plant in inundated Ayutthaya had to halt production and its Bangkok plant also had to suspend operations, as nearby areas were submerged.
The group this year celebrates its 50th anniversary of doing business in Thailand.
On March 19 when the group celebrated the 40th anniversary of its presence in the country, Toray Group Indonesia said it would invest US$500 million in Indonesia up to 2020. Half of the amount will be used to strengthen its core businesses – fibres and textiles – while the rest will be used for new businesses.
Under the medium-term management plan launched in 2011 called “Project AP-G 2013″, Toray aims to become a corporate group that continually increases revenues and profits.
It is driving forward a group-wide effort called the Asia and Emerging Country Business Expansion Project to tap the galloping economies of Asian and other emerging countries. The group will also continue to pursue new business opportunities.
Toray will especially focus on the rapidly expanding Asean region and Indonesia and will actively carry out expansion in not only the existing fibres and textiles businesses, but also businesses such as resin, film, water treatment, pharmaceutical and medical product. Fibres and textiles encompass plastics and chemicals, IT-related products, carbon-fibre composite materials, environment and engineering, and life sciences.
For the nine-month period ending December, the group earned 37.3 billion yen on 1.17 trillion yen in sales.