Tokyo-based Toray Industries Inc. is launching production of PET film for use as a substrate for LCD screen backlight in China. The company also is doubling its manufacturing capacity for such film in South Korea.

According to a Nikkei BP report, the company decided to start making the PET film in China because global LCD display manufacturers expanded there to meet growing local demand.

Toray plans to move a 6,600-ton-per-annum production line from Gifu, Japan to Yihua Toray Polyester Film Co. Ltd., a 50:50 Chinese joint venture with Sinopec Yizheng Chemical Fiber Co. Ltd. in Yizheng, Jiangsu province. The line is scheduled to start running by July 2011.

Toray's wholly owned subsidiary in South Korea, Toray Saehan Inc., will double its annual capacity of the PET film to 36,000 metric tons by adding one production line. Toray said the South Korean government's policy to encourage the use of locally produced materials drives demand.

Total investment for both moves is reported to be 10 billion yen (745 million yuan or US$110 million).