TOKYO (Aug. 3, 10:15 a.m. ET) — Hoping to tap into growth in the automotive, home appliance and computer manufacturing markets in western China, Japan's Toray Plastics Co. Ltd. is building a compounding plant in Chengdu, Sichuan province, its third in the country and first away from the traditional coastal manufacturing zones.
The 1 billion yen ($12.78 million) facility is scheduled to open in October 2013 with an annual capacity of 24.2 million pounds, the company said in a July 24 news release.
Tokyo-based Toray said it would target applications with polyphenylene sulfide (PPS), nylon and polybutylene terephthalate (PBT). It said it would in the future add compounding specialty resins such as liquid-crystal polymers with carbon fiber for higher-value applications.
It said demand for engineering resins in auto and home appliance markets is growing 12 percent a year in China, but 17 percent a year in west China.
Other multinationals are investing there. American computer maker Dell Inc., for example, is building a sizable manufacturing plant in Chengdu, to complement an existing factory campus on the country's more developed coast, in Fujian province.
Toray said the investment is part of a strategy to boost growth in emerging markets in Asia.
The company also has engineering plastics compounding facilities in Shenzhen, Guangdong province, and Suzhou, Jiangsu province.