Toray Industries Inc., Japan’s leading advanced materials maker, will invest 1 trillion won ($885.9 million) in its operations in South Korea over the next three years to ramp up its synthetic fibers and lithium-ion rechargeable battery separator production.

Akihiro Nikkaku, president and chief executive officer of Toray Industries, and Lee Young-kwan, chairman and CEO of Toray Chemical Korea, announced in Seoul on Thursday that Toray Industries plans to spend combined 1 trillion won to expand its businesses in Korea. With the expansion, the Japanese firm aims to boost total sales of its Korean units to 5 trillion won by 2020 from 2.8 trillion won achieved last year.

The Japan-based global chemical material company has made the bold investment decision on its Korean business arms as demand for basic chemical materials is set to rise further in the country.

“Korea has many major global leading companies, such as Samsung Electronics, Hyundai Motor, LG, and SK, in various sectors,” said Nikkaku. “Our company has decided to expand our business in the country to meet growing demand from these leading companies and to further enhance ties with them.”

Toray Industries’ units in Korea generated combined 2.8 trillion won in sales last year, which accounts for nearly 14 percent of the Japanese materials maker’s total sales. The leading Japanese basic material manufacturer first ventured into Korea in 1963 by providing nylon production skills to a Korean company. Since then, it has continued to expand its investments in its Korean units including Toray Advanced Materials Korea Inc., Toray Battery Separator Film Korea Ltd, and Toray BSF Coating Korea Ltd.

Of total 1 trillion won investment, Toray will inject 115 billion won in Toray Advanced Materials Korea to ramp up its polypropylene spunbond production. Polypropylene spunbond is polyester felt used in making diapers, facial masks for medical use, and the like. The decision to ramp up the polyester felt production comes after the growing demand from wider use of polypropylene spunbond in various industrial sectors, said Lee, adding that the company aims to become the world’s No. 1 polypropylene spunbond maker beyond its leadership in Asia.

Toray Advanced Materials Korea will also make a separate 100 billion won investment to expand its polyphenylene sulfide (PPS) resin production, lifting its annual production capacity to 18,600 tons.

PPS is a high-performance material that is used in a variety of component parts for automotive, electrical and medical products to provide light-weight solutions. PPS resin is an ideal replacement for metal due to its high strength, heat-resisting property, and high dimensional stability. The demand for PPS is growing rapidly as it expands its application in electric and hybrid vehicles.

As the Korean government is encouraging companies to expand business in Saemangeum Industrial Complex in North Jeolla Province, where the Advanced Materials Korea’s PPS resin manufacturing plant is located, with incentives, the company will aggressively expand PPS production, said Lee.

In addition, the Japanese advanced materials manufacturer will inject a total of 550 billion won to up its share in the fast-growing electrical vehicle battery industry. It will spend 400 billion won to ramp up its lithium rechargeable battery separator production of Toray Battery Separator Film Korea and make another 150 billion won investment to enlarge coating capacity for lithium rechargeable battery separator at Toray BSF Coating Korea.

Stemco, Ltd., which manufactures COF (chip on film) and TAB (tape-automated bonding) used for LCD panels and plasma display panels, will make 200 billion won investment on new product development projects.

Separately, the Korean head office of the Japanese advanced materials manufacturer plans to set up a science foundation in Korea to take greater corporate social responsibilities.

At 2:30 p.m. on Friday, shares of Toray Chemical Korea were up 2.64 percent at 19,450 won.

By Kang Young-woon and Cho Jeehyun

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]