Japan’s Toray Industries Inc., the leading global carbon textile manufacturer, announced plans to invest 500 billion won ($366.3 million) in expanding its eco-friendly materials production capacity in South Korea. This strategic move comes as the company seeks to identify new growth drivers through high-end products amid a slowdown in the petrochemical industry.
On Wednesday, Toray Industries and its wholly owned subsidiary, Toray Advanced Materials Korea Inc., signed a memorandum of understanding in Seoul with the South Korean Ministry of Trade, Industry and Energy, along with regional governments. “We will keep expanding the high-tech materials business, focusing on eco-friendly and high-performance products to create new value in the rapidly changing materials industry,” stated Kim Young-Seop, CEO of Toray Advanced Materials Korea.
The investment will significantly enhance the production capacity of carbon fiber at Toray’s plant in Gumi, North Gyeongsang Province. The plant’s capacity is set to increase from 4,700 tons to 8,000 tons annually, making South Korea responsible for 11.4% of Toray Industries’ global carbon fiber output, which totals 70,000 tons per year. Carbon fiber composites, known for being significantly lighter than steel and possessing up to ten times its tensile strength, are ideal for aerospace and wind power industries that require high strength at low weight.
Additionally, Toray Advanced Materials Korea plans to boost its aramid fiber output at the Gumi plant from 3,000 tons to 5,000 tons per year. Aramid fiber, recognized for its heat resistance and strength, is widely used in electric vehicle traction motors, heat-resistant clothing, and extra high voltage transformers.
This expansion underscores Toray’s commitment to advancing high-tech, eco-friendly materials, positioning the company for sustained growth in a rapidly evolving industry.
