Toray to Establish Resin Compound Facility in AP

Japan’s Toray Industries, Inc. has decided to establish a production facility for nylon and polybutylene terephthalate (PBT) resin compounds at its Indian subsidiary, Toray Industries (India) Pvt. Ltd. (TID). The resins, with their superior heat and chemical resistance properties and mechanical strength, are used in electrical components of automobiles and in electrical & electronic connectors. The facility, with a production capacity of 5,000-tpa, will be set up at TID’s base in Sri City in Andhra Pradesh and the company is aiming to start operations of the plant from September 2019.

According to a press release issued by the parent company, demand for premium goods and value-added goods such as automobiles and home electronic devices is expanding in India on the back of rising income levels. The company expects the automobile market to have a high annual growth rate of 7% to 2025, and demand is expected to grow for engineering plastics for auto-mobile applications. “In particular, with the recent trends in strengthening of environmental regulations, the customer requirements have become increasingly sophisticated primarily in automobile applications and it is safe to say that the demand for highly functional materials, which Toray specializes in, will increase. The establishment of the new facility is in response to the above trends and is aimed at offering stable supply and shorter lead time through local production and at strengthening the development capability on-site and the functions of storage and delivery,” the release added.

“India is a region where we can expect the market to grow. The establishment of the new facility this time is the first such base in India for Toray’s resin business, and we’re quite excited about it. We would like to capture this rapidly growing market without fail and strongly pursue business expansion,” said Mr. Takashi Endo, General Manager, Resins Division.

Base for South Asia

Going forward, Toray plans to make the TID business base in Sri City not only to cater to the demand inside India, but also as a base for its global operations targeting South Asia. “Toray will continue to enhance its overseas bases and strongly pursue global business expansion through further strengthening of organic collaborations with them,” the release added.