TOKYO (Oct. 23, 12:15 p.m. ET) — Toray Industries Inc. has announced plans to establish a new resin compounding base in Indonesia, which, once completed, will become the first compounding facility by an engineering plastics manufacturer in that country.
Toray will invest approximately 600 million yen (US$7.6 million) to build the nylon and PBT resin compounding facility with an annual capacity of 6,000 metric tons. The new facility is expected to start operation in November 2013, Toray said a news release.
Through this expansion, Toray aims to be the first engineering plastic company to capitalize on the growing demand in that market, which is expected to increase by an annualized rate of about 9 percent from 21,000 tons a year in 2011 to 45,000 tons in 2020.
Indonesia – the largest economy in the ASEAN region – has been growing at a rate of 6 percent per year, and its automotive production is estimated to rise to more than 2 million units from 840,000 units in 2011. In addition, Toray said, Indonesia's electrical and electronics markets are also expanding.
The new compounding plant will be operated by Toray's majority owned subsidiary P.T. Indonesia Toray Synthetics in Tangerang, Banten province. ITS also has a local nylon polymerization facility.
Toray said the localization of the production will provide swift response and meticulous technical service to customers.