Osaka, Japan
www.toray.com
2024 Nonwovens Sales: $1 billion

Key Personnel
Makoto Nishimura, general manager, Nonwoven and Advanced Fiber Materials Div. (Toray); Seo Jin Park, senior managing director, chief of SB Business Div. (Toray Advanced Materials Korea); Tatsu Matsushita, general manager, Performance Nonwoven Products Dept. (Toray)

Plants
Shiga and Ehime, Japan; Gumi, Korea; Nantong and Foshan, China; Jakarta, Indonesia: Sri City, India

Processes
Spunbond, wetlaid paper, fibers for needlepunch and spunlace

Brand Names
Livsen, Axtar, Torcon, Gulfeng, Tetoron

Major Markets
Hygiene, industrial filtration, civil engineering & construction, face mask, automotive

Decreasing birth rates in China continue to lead to an imbalance between supply and demand for nonwoven materials in China. To defend itself against these challenges. Toray continues to focus on improving profitability by expanding high-value-added products and reducing costs.

Last year, it was reported that sluggish demand in the Chinese baby diaper market due to declining birth rates has led Toray Industries, one of Asia’s largest manufacturers of polypropylene spunbond nonwovens, to focus on other areas for growth. According to reports, the company is trying to increase its sales to local diaper manufacturers in China while developing new markets in areas such as Central and South America. Additionally, Toray is strengthening its product offerings for the adult diaper and fem care markets.

With manufacturing sites in Korea, China, Indonesia and India, Toray has invested heavily in nonwovens production in recent years. In addition to focusing on new markets, the company is looking at new technologies to expand its sales. Most recently, Toray has created polypropylene spunbond products with finer and denser fibers which are pressure bonded to provide high water pressure resistance and a smooth surface.

“In the Asian market for sanitary products, while the Northeast Asian market centered on China and Japan continues to face a supply-demand imbalance due to declining birth rates and oversupply, the market in Southeast Asia and India is still expected to grow, mainly due to the increasing penetration of sanitary products,” executives say.

Toray reportedly makes 231,0000 tons of nonwovens per year at its sites in China, Japan, Korea, Indonesia and India. The largest percentage of output is currently made in China where the company has two sites in Nantong and Foshan, which together make 93,000 tons of nonwovens per year. The company’s most recent Chinese investment, in Foshan, was completed in 2018, adding 20,000 tons of capacity.

Outside of China, Toray makes 10,000 tons of nonwovens in Japan, 73,000 tons in Korea, 18,000 tons in India and 37,000 tons in Indonesia. The majority of its output is polypropylene spunbond nonwovens for hygiene applications, but it also makes some polyester-based fabrics for industrial filters. Its most recent investment, a spunbond operation in Sri City, India, was started in 2018 but not complete until 2021 due to Coronavirus-related delays. The factory contains a polypropylene spunbond plant mainly targeting disposable diaper applications as well as an engineered plastics resin compounding plant that makes raw materials for electrical components of automobiles and in electrical and electronic connectors.

In the last several years, the company has met customer demands for more sustainable products with the development of new product lineups and lighter-weight products to reduce plastics consumption. It has also worked to defend itself against exchange rate fluctuations by expanding sales of differentiated products and reviewing its production and supply bases.

Plants: Shiga and Ehime, Japan; Gumi, Korea; Nantong and Foshan, China; Jakarta, Indonesia: Sri City, India
Processes: Spunbond, wetlaid paper, fibers for needlepunch and spunlace
Brand Names: Livsen, Axtar, Torcon, Gulfeng, Tetoron
Major Markets: Hygiene, industrial filtration, civil engineering & construction, face mask, automotive

Decreasing birth rates in China continue to lead to an imbalance between supply and demand for nonwoven materials in China, which has resulted in a year-on-year decline in sales and profits for Toray Industries. This situation has continued into 2024 but Toray has been working to improve profitability by expanding high-value-added products and reducing costs.

“In the Asian market for sanitary products, while the Northeast Asian market centered on China and Japan continues to face a supply-demand imbalance due to declining birth rates and oversupply, the market in Southeast Asia and India is still expected to grow, mainly due to the increasing penetration of sanitary products,” executives say.

Toray currently makes 231,0000 tons of nonwovens per year at its sites in China, Japan, Korea, Indonesia and India. The largest percentage of output is currently made in China where the company has two sites in Nantong and Foshan, which together make 93,000 tons of nonwovens per year. The company’s most recent Chinese investment, in Foshan, was completed in 2018, adding 20,000 tons of capacity.

Outside of China, Toray makes 10,000 tons of nonwovens in Japan, 73,000 tons in Korea, 18,000 tons in India and 37,000 tons in Indonesia. The majority of its output is polypropylene spunbond nonwovens for hygiene applications, but it also makes some polyester-based fabrics for industrial filters. Its most recent investment, a spunbond operation in Sri City, India, was started in 2018 but not complete until 2021 due to Coronavirus-related delays. The factory contains a polypropylene spunbond plant mainly targeting disposable diaper applications as well as an engineered plastics resin compounding plant that makes raw materials for electrical components of automobiles and in electrical and electronic connectors.

In the past year or two, the company has met customer demands for more sustainable products with the development of new product lineups and lighter-weight products to reduce plastics consumption. It has also worked to defend itself against exchange rate fluctuations by expanding sales of differentiated products and reviewing its production and supply bases.

Plants: Shiga and Ehime, Japan; Gumi, Korea; Nantong and Foshan, China; Jakarta, Indonesia: Sri City, India
Processes: Spunbond, wetlaid paper, fibers for needlepunch and spunlace
Brand Names: Livsen, Axtar, Torcon, Gulfeng, Tetoron
Major Markets: Hygiene, industrial filtration, civil engineering & construction, face mask, automotive

Reporting an unbalanced supply-to-demand ratio in 2022 was Toray Industries. Particularly noting that the spunbond nonwovens market was in oversupply due to sluggish birth rates in China, the Asian nonwovens producer reports that high sales prices were not enough to offset raw material price increases, resulting in a decrease in profit. However, the company remains optimistic for the future thanks to potential in India and the ASEAN region, where it currently has operations.

Toray currently makes 231,0000 tons of nonwovens per years at its sites in China, Japan, Korea, Indonesia and India. The largest percentage of output is currently made in China where the company has two sites in Nantong and Foshan, which together make 93,000 tons of nonwovens per year. The company’s most recent Chinese investment, in Foshan, was completed in 2018, adding 20,000 tons of capacity.

Outside of China, Toray makes 10,000 tons of nonwovens in Japan, 73,000 tons in Korea, 18,000 tons in India and 37,000 tons in Indonesia. The majority of its output is polypropylene spunbond nonwovens for hygiene applications but it also makes some polyester-based fabrics for industrial filters.

Its most recent investment, a spunbond operation in Sri City, India, was started in 2018 but not complete until 2021 due to Coronavirus-related delays. The factory contains a polypropylene spunbond plant mainly targeting disposable diaper applications. The 85-acre tract of land also contains an engineered plastics resin compounding plant that makes raw materials for electrical components of automobiles and in electrical and electronic connectors. Having operations in so many Asian countries has proven beneficial to growth, particularly during challenging times.

“We expect India and ASEAN to grow as markets. In China, the largest market, we assume that the needs for high-functional nonwoven fabrics will grow in all fields. We think there are many market opportunities in the sustainability-related field represented by EVs,” spokesman Taira Kuwosawa says.

After a period of significant expansion in Asia, the company is not making any firm plans for future expansion and is instead weighing market growth opportunities in Asia. In the meantime, Toray is focusing on sustainability. Among its many efforts in this area is a reduction of plastic use in polyproplyene spunbond nonwovens, primarily through lower basis weights and the use of sustainable raw materials. Toray Group has also accelerated its efforts to convert raw materials and pellets to bio-based materials, material/chemical recycling and CO2 resources in all its businesses.

Within nonwoven fabrics, Toray is promoting the use of recycled and bio-based raw materials and focusing on the development of new materials that reduce the amount of plastic used while maintaining the same functions and performance. For example, Axtar PF nonwovens eliminates the adhesive point embossed pattern of spunbond, so the surface of the fabric is flat without any unevenness. This makes it highly printable and is aimed at replacing paper.

Plants: Shiga and Ehime, Japan; Gumi, Korea; Nantong and Foshan, China; Jakarta, Indonesia: Andhra Pradesh, India
Processes: Spunbond, wet-layed paper, fibers for needlepunch and spunlace
Brand Names: Livsen, Axtar, Torcon, Gulfeng, Tetoron
Major Markets: Hygiene, industrial filtration, civil engineering & construction, face mask, automotive

Despite an imbalance between supply and demand for spunbond nonwovens—due largely to low birth rates in China—Toray Industries reported nonwovens sales of $1.023 billion in 2021 thanks to deepened cooperation with key customers. This allowed the company to expand its polyester spunbond output in Shiga, Japan, and its polypropylene production in India. The company expects it sales to continue to grow in 2022 thanks to the introduction of high value added products as well as continued price increases. However, decreasing births in China, oversupply and soaring raw material and fuel prices will continue to pose challenges.

One of Asia’s largest nonwovens producers, Toray currently makes 231,000 tons of nonwovens, all within Asia. The largest percentage of output is currently made in China where the company has two sites in Nantong and Foshan, which together make 93,000 tons of nonwovens per year. The company’s most recent Chinese investment, in Foshan, was completed in 2018, adding 20,000 tons of capacity.

“Although the impact of the lockdown on operations at the polypropylene spunbond plant in China was minor, the slowdown in the Chinese economy has had a major impact on sponbond sales as well as industrial filters and other products exported from Japan to the Chinese market. In the industrial filters business, we will recover the decline in China by expanding sales to Europe and the U.S., where demand is strong,” says Tatsuya Bessho, manager of corporate communications.

Outside of China, Toray makes 10,000 tons of nonwovens in Japan, 73,000 tons in Korea, 18,000 tons in India and 37,000 tons in Indonesia. The majority of its output is polypropylene spunbond nonwovens for hygiene applications but it also makes some polyester-based fabrics for industrial filters.

Its most recent investment, a spunbond operation in Sri City, India, was started in 2018 but not complete until last year due to Coronavirus-related delays. The factory contains a polypropylene spunbond plant mainly targeting disposable diapers. The 85-acre tract of land also contains an engineered plastics resin compounding plant that makes raw materials for electrical components of automobiles and in electrical and electronic connectors. According to Bessho, having operations in so many Asian countries has proven beneficial to growth, particularly during challenging times.

“The slowdown in growth in China, Asia’s largest market, has had a significant impact, but India and Indonesia are expanding as initially expected, and Asia remains a growth market,” he says.

After a period of significant expansion in Asia with the most recent investment, the company’s first Indian operation, the company is not making any firm plans for future expansion and is instead weighing market growth opportunities in Asia. In the meantime, Toray is focusing on sustainability. Among its many efforts in this area is a reduction of plastic use in polyproplyene spunbond nonwovens, primarily through lower basis weights and the use of sustainable raw materials.

Plants: Shiga and Ehime, Japan; Gumi, Korea; Nantong and Foshan, China; Jakarta, Indonesia: Andhra Pradesh, India
Processes: Spunbond, wet-layed paper, fibers for needlepunch and spunlace
Brand Names: Livsen, Axtar, Torcon, Gulfeng, Tetoron
Major Markets: Hygiene, industrial filtration, civil engineering & construction, face mask, automotive

Despite negative impacts of Covid-19, mainly in the automotive and filtration segments, Toray Industries was able to grow its sales thanks to growth in face masks and other applications that helped to fight against the spread of its infection. In 2020, group sales were $902 million across its sights in five Asian countries—Japan, Korea, China, India and Indonesia.

“The company has positioned the nonwoven material business as a priority business to expand in the medium-term management program of Toray,” says Tatsu Matsushita, GM of Performance Nonwoven Products Dept. “At present, we’re focusing on maximizing our sales based on existing production bases in Asia and India. We have also started internal discussion to proceed to the next step of expansion plans to consider this complicated market situation very carefully.”

Toray currently makes 231,000 tons of nonwovens in Asia. The largest percentage of output is currently made in China where the company has two sites in Nantong and Foshan, which together make 93,000 tons of nonwovens per year. The company’s most recent Chinese investment, in Foshan, has been completed, adding 20,000 tons of capacity.

This investment represents Toray’s latest expansion in China, where demand for the materials is still growing due to growth in the hygiene market. Also in 2020, Toray started production on a site in India, capable of making 18,000 tons of material per year.

One of the largest makers of nonwovens in Asia, Toray also makes 61,000 tons of the material in Korea, 37,000 tons per year in Indonesia, and 10,000 tons of nonwovens in Japan. The majority of this capacity is polypropylene spunbond for hygiene applications, but the company also makes polyester nonwoven fabrics for several industrial applications.

As a proven leader in the Asian nonwovens industry, Toray uses its know-how to provide specific products to fit each customer’s requirements by utilizing the advantage of each production site.

“The customer requirement is always ‘something new, something different’ so Toray is always going to be a ‘Better Solutions Supplier,’ not like the others,” Matsushita says.

While no new line investments have been announced for now, Toray is weighing the supply and demand scenario in the Asian market where competitors’ significant capacity expansions are targeting the hygiene market. “Demand expansion itself is still there,” Matsushita says. “Our way is to maximize the advantage of our supply network in Asia to contribute to our customers and society.”

Plants: Shiga and Ehime, Japan; Gumi, Korea; Nantong and Fushang, China; Jakaruta, Indonesia: Andhra Pradesh, India
Processes: Spunbond, Needlepunch, Spunlace, Papermaking
Brand Names: LIVSEN, AXTAR, TORCON, GULFENG
Major Markets: Hygiene, Industrial filtration, Civil engineering & construction, Face mask

Expansion in Asia and India responds to robust demand for polypropylene spunbond nonwovens at Toray. “We continue to maintain the number one supply network in these areas by continuous enhancement of material development,” says Masahi Fujii, Toray spokesperson. “In Asia, as competition becomes harder for hygiene customers along with continuous demand growing, every customer requires differentiated materials more and more than before. So we’ll continue to develop all kinds of high-value materials to respond to our customers’ needs and deliver them to our customers appropriately through our wide spread supply network.”

The largest manufacturer of polypropylene-based spunbond nonwovens in Asia, Toray has facilities in China, Indonesia, Korea and India. However, production on its first investment in India, an 18,000-ton-per-year spunbond line, has been delayed due to the Covid-19 epidemic. The company expects production to begin on the line once government lockdowns end.

“The hygiene materials business is expected to expand along with the increasing demand for disposable diapers. We will make sure to capture the demand in India, where the disposable diapers will be consumed, and accelerate the global business expansion of PP spunbond with a powerful production platform and high cost competitiveness,” Fujii says .

In other investment news, earlier this year Toray completed work on a 20,000-ton-per year spunbond line in Foshan, China. The investment represents Toray’s fifth line in China, where demand for the materials is growing more than 10% per year due to growth in the hygiene. Toray also operates two lines in Indonesia and one in South Korea, which was added in 2018.

Plants: Korea, China, Indonesia, India
Processes: Spunbond, spunmelt, needlepunch

Asia’s largest nonwovens producer Toray Advanced Materials is continuing its Asian expansion with the addition of a new spunbond nonwovens line in Sri City, India. The new site will house a state-of-the-art polypropylene spunbond nonwovens line to meet growing demand for the materials in the Indian disposable diaper market as well as nylon and PTB resin compounding facilities. The new line, which represents a $40 million investment for Toray, is expected to be operational in 2020.

The new spunbond line will have an annual capacity of 18,000 tons and will target the growing disposable diaper market, which is benefitting from improved lifestyles changes, a high birth rate and a huge population—about 1.34 billion people live in India, the second largest country in the world by population. Major hygiene manufacturers have been aggressively expanding their businesses in India to meet current and future demand.

Toray’s compounding facilities will help it meet demand in the automobile market, which is expected to grow at a rate of 7% per year until 2025. In addition, it is believed that the requirement for Toray’s high performance materials will increase given the expanding demand for high performance auto parts and sophistication of customer demands along with the tightening of environmental restrictions in recent years.

“Asia’s hygiene market is expected to grow at an average annual rate of 8% due to China’s ‘two-child policy’ and India’s growing income,” says head of marketing Jason Lee. “In addition to the above, customer demand on quality continues to increase. On the other hand, due to excessive investment expected in Asia by nonwoven companies for the next few years, the supply volume of polypropylene spunbond is expected to exceed demand.”

With four spunbond polypropylene lines in China, two in Indonesia and a new one in South Korea (where the company has a sizable polyester spunbond operation) in addition to the forthcoming Indian investment, Toray is among Asia’s largest nonwovens producers and the company has invested aggressively in its business in recent years.

Toray’s most recent investment, a new line in South Korea, came onstream in 2018 to help meet increasing levels of customer demands. Elsewhere, Toray completed work on a second line in Indonesia in 2016 which will target not only its domestic market but also other parts of Southeast Asia.

Toray also operates four lines in China where it is considering additional lines to comply with the supply and demand situation which is expected to increase 13% annually by 2020.

For Toray, investment depends on the situation of supply and demand in the Asian region and the company has been considering new lines in countries like Korea, China and Indonesia depending on how quickly demand is increasing from major manufacturers which is largely being driven by increasing per capita income, which promotes the consumption of disposables products.

In the short term, Toray aims to secure the Asian supply chain and expand in various regions of Asia including China and Indonesia, starting with its planned capacity expansion projects in Korea and India. Longer term, Toray’s ultimate goal is to reach the number one position in the world, not just Asia.

Outside of hygiene, Toray earlier this year introduce Ultrasuede BX, a nonwoven material with a suede texture which comprises approximately 30% plant-based raw materials. The material realizes the highest proportion of plant-based raw materials – polyester and polyurethane in this case – in the world.

Plants: Korea, China, Indonesia, India
Processes: Spunbond, spunmelt, needlepunch

Asia’s largest nonwovens producer Toray Advanced Materials is continuing its Asian expansion with the addition of a new spunbond nonwovens line in Sri City, India. The new site will house a state-of-the-art polypropylene spunbond nonwovens line to meet growing demand for the materials in the Indian disposable diaper market as well as nylon and PTB resin compounding facilities. The new line, which represents a $40 million investment for Toray, is expected to be operational in 2020.

The new spunbond line will have an annual capacity of 18,000 tons and will target the growing disposable diaper market, which is benefitting from improved lifestyles changes, a high birth rate and a huge population—about 1.34 billion people live in India, the second largest country in the world by population. Major hygiene manufacturers have been aggressively expanding their businesses in India to meet current and future demand.

Toray’s compounding facilities will help it meet demand in the automobile market, which is expected to grow at a rate of 7% per year until 2025. In addition, it is believed that the requirement for Toray’s high performance materials will increase given the expanding demand for high performance auto parts and sophistication of customer demands along with the tightening of environmental restrictions in recent years.

“Asia’s hygiene market is expected to grow at an average annual rate of 8% due to China’s ‘two-child policy’ and India’s growing income,” says head of marketing Jason Lee. “In addition to the above, customer demand on quality continues to increase. On the other hand, due to excessive investment expected in Asia by nonwoven companies for the next few years, the supply volume of polypropylene spunbond is expected to exceed demand.”

With four spunbond polypropylene lines in China, two in Indonesia and one under construction in South Korea (where the company has a sizable polyester spunbond operation), Toray is among Asia’s largest nonwovens producers and the company has invested aggressively in its business in recent years.

Toray’s most recent investment, a new line in South Korea, is on track to be complete in the first half of 2018, when it will help meet increasing level of customer demands. Elsewhere, Toray completed work on a second line in Indonesia in 2016 and this line will achieve maximum production and sales capacity in the second half of 2017 covering not only its domestic market but also other parts of Southeast Asia.

Toray also operates four lines in China where it is considering additional lines to comply with the supply and demand situation which is expected to increase 13% annually by 2020.

For Toray, investment depends on the situation of supply and demand in the Asian region and the company has been considering new lines in countries like Korea, China and Indonesia depending on how quickly demand is increasing from major manufacturers which is largely being driven by increasing per capita income, which promotes the consumption of disposables products.

In the short term, Toray aims to secure the Asian supply chain and expand in various regions of Asia including China and Indonesia, starting with its planned capacity expansion projects in Korea and India. Longer term, Toray’s ultimate goal is to reach the number one position in the world, not just Asia.

Plants: Korea, China, Indonesia
Processes: Spunbond PP (SS, SSS, SMS, SSMMS, SMMMS, bicomponent), polyester (embossed and needlepunched)
Brands: Livsen
Major Markets: Hygiene, medical, protective apparel, industrial specialties, agricultural, upholstery, filtration, construction, geotextiles

Increased sales from subsidiaries in China and Indonesia as well as sharper demand from Chinese hygiene manufacturers helped Toray Advanced Materials grow sales 11% to $341 million and executives expect this growth trajectory to continue.

“Asia’s hygiene market is expected to grow at an average annual rate of 8% due to China’s ‘two-child policy’ and India’s growing income,” says head of marketing Jason Lee. “In addition to the above, customer demand on quality continues to increase. On the other hand, due to excessive investment expected in Asia by nonwoven companies for the next few years, the supply volume of polypropylene spunbond is expected to exceed demand.”

With four spunbond polypropylene lines in China, two in Indonesia and one under construction in South Korea (where the company has a sizable polyester spunbond operation), Toray is among Asia’s largest nonwovens producers and the company has invested aggressively in its business in recent years.

Toray’s most recent investment, a new line in South Korea, is on track to be complete in the first half of 2018, when it will help meet increasing level of customer demands. Elsewhere, Toray completed work on a second line in Indonesia in 2016 and this line will achieve maximum production and sales capacity in the second half of 2017 covering not only its domestic market but also other parts of Southeast Asia.

Toray also operates four lines in China where it is considering additional lines to comply with the supply and demand situation which is expected to increase 13% annually by 2020. Another key market is India, which is expected to increase 17% per year.

“It is important to dominate the market in advance to achieve a steady growth in the hygiene business,” Lee says. “Toray strives to maintain its status as Asia’s No. 1 leader in the hygiene industry. For this reason, TAK plans to expand capacity in Asia focusing on Korea, China, and Indonesia.”

While Lee did not elaborate on where or when the investments will take place, he did say that the company has a plan to bring its total capacity to over 200,000 tons compared to its current capacity which will be approximately 135,000 tons once the new Korean line comes onstream. This will put Toray in an even better position to serve its customers.

“For global manufacturers, decisions to select suppliers are made based on the supply quantity, quality, delivery time and skill level of products,” Lee says. “Despite over-supply in the Asian market, there are only a few companies that provide high-quality products. Therefore it is still insufficient to fulfill the demands for differentiated polypropylene spunbond products required by global manufacturers.”

For Toray, investment depends on the situation of supply and demand in the Asian region and the company has been considering new lines in countries like Korea, China and Indonesia depending on how quickly demand is increasing from major manufacturers which is largely being driven by increasing per capita income, which promotes the consumption of disposables products.

“Most countries in Asia, such as China, Indonesia and India, are examples of increasing income,” Lee says. “Furthermore, the high population density in Asia and China’s new two-child policy are factors that promote increased demand for disposable diapers.”

In the short term, Toray aims to secure the Asian supply chain and expand in various regions of Asia including China and Indonesia, starting with its planned capacity expansion in Korea next year. Longer term, Toray’s ultimate goal is to reach the number one position in the world, not just Asia. “By expanding our market share in China and steadily advancing our business into emerging markets, we can achieve this,” Lee adds.

Plants: Korea, China, Indonesia
Processes: Spunbond PP (SS, SSS, SMS, SSMMS, SMMMS, bicomponent), polyester (embossed and needlepunched)
Brands: Livsen
Major Markets: Hygiene, medical, protective apparel, industrial specialties, agricultural, upholstery, filtration, construction, geotextiles

Toray Advanced Materials, Korea’s largest maker of spunbond nonwovens with plants throughout Asia, continues to remain bullish about the strength of the Asian hygiene market.

“The supply increase of disposable hygiene products in the emerging markets is seen as the main reason for the penetration growth,” explains Evan Lee, deputy general manager of the company’s fiber marketing team. “Due to the rise in income the consumption pattern is becoming similar to that of developed countries. In addition, the change in course of China’s one child policy is another major driving force in the growth of the Asian market.”

In 2015, sales volumes grew 7% thanks to utilization of the company’s fourth China line, which was completed early in the year, while dollar sales decreased 9% on lower selling prices brought on by decreasing raw material prices.

Toray expects sales volumes to continue as it is well poised to benefit from growth in the Asian hygiene market, which is projected to increase 10% per year. During the past decade, a string of spunbond investments have made Toray Asia’s largest supplier of nonwovens to the hygiene market.

“Based on a firm and an interconnected partnership with global hygiene manufacturers, Toray’s business strategy is planned carefully alongside its partners,” Lee says. “Accordingly to our customers’ Asian expansion strategy, Toray considers investment plans to provide products and the quantity to meet the needs of our partners. Our aggressive investment is none other than the aggressive investment plan of our customers.”

Toray’s most recent expansion plan is a new polypropylene line with a manufacturing capacity of 18,000 tons per year in Gumi, Korea, which represents the company’s first new Korean polypropylene spunbond line since 2003. “As a result of the increase in personal income and the growing Chinese, ASEAN and Indian economy, disposable hygiene product market has shown sudden expansion,” Lee says. “With the rapid enlargement, the middle class parents have been expressing more interest in safety and quality standards.”

In other expansion news, TAK is currently adding line No. 2 at Toray Polytech Jakarta in Indonesia, an investment that will double the site’s capacity to 40,000 tons when it is complete sometime this fall. The site became operational in June 2013 and so far about 70% of the site’s sales have been within Indonesia. Executives expect line No. 2  to help expand the company’s role in other ASEAN nations.

Meanwhile, Toray’s Chinese site, located in Nantong, is among China’s largest nonwovens operations, now housing four spunmelt lines capable of making about 77,000 tons of material per year. The latest of these lines, an SSS spunbond line with an annual capacity of 20,000 tons, specialized in thin and soft products for the growing premium hygiene market, came onstream in June 2014. According to Lee, about 40% of nonwovens made at this site are sold in China while the remaining are exported elsewhere in Asia.

While Lee admits that Toray is focused on four core areas—Korea, Japan, China and Indonesia—he would not comment on future investments beyond the ones already announced in Korea and Indonesia. “Depending on the market growth and new prospective needs, we plan to examine and review new investment plans, however, it is untimely to define the details,” he says.

Plants: Korea, China, Indonesia
Processes: Spunbond PP (SS, SSS, SMS, SSMMS, SMMMS, bicomponent), polyester (embossed and needlepunched)
Brands: Livsen
Major Markets: Hygiene, medical, protective apparel, industrial specialties, agricultural, upholstery, filtration, construction, geotextiles

An ambitious Asian expansion plan has paid off for Korea’s largest nonwovens producer. Toray Advanced Materials Korea (TAK) reports an 18% increase in sales to $342 billion for the year 2014. While the growth was not as impressive in Korea, up only in the single digits, the group’s Chinese arm increased its sales more than 10% while Toray Polytech Jakarta in Indonesia, which began operation in June 2013, increased more than 200%.

“Our Indonesian SSMMS line—with an annual capacity of 20,000 tons—started in late June in 2013,” says export manager Evan Lee. “Our Korean technician and Indonesian staff stabilized our new machine quickly to produce high quality spunmelt for hygiene application and therefore we could operate fully starting in early 2014 and supply hygiene customers in Indonesia and ASEAN countries.”

In December 2014, just 18 months after starting up line number one, Toray announced it would add a second line, capable of making 18,000 tons per year, in Jakarta. The new line should be complete in September 2016 and will bring Toray’s total spunbond capacity in Asia to 153,000 tons.

“The ASEAN region is one of our most important and strategic market, and Indonesia is the biggest market in ASEAN countries,” Lee says. “The Philippines, Malaysia and Vietnam market is the our next target market in ASEAN except for Indonesia.”

Meanwhile, in China, another important growth region, Toray completed work on its fourth line in Nantong in June. This line, an SSSS spunbond line with an annual capacity of 20,000 tons is specialized in thin and soft products for the growing premium hygiene market and it makes the Nantong site the largest nonwovens plant in Asia, according to Lee.

With the Asian market for polypropylene spunbond nonwovens expected to increase from 660,000 tons in 2016 to 936,000 tons in 2020–due to both explosive baby diaper needs in emerging ASEAN countries and adult diaper needs in Korea—the hygiene market is a good one to be in and much of Toray’s output in this region targets these markets.

“The Asian hygiene market is a good market in nonwovens with strong and stable growth, but many nonwovens companies focus on supplying their products to major diaper companies to aggressively expand their capacity, therefore sales are  growing but the profits so much,” Lee says. “We have a long-term investment plan in Asia and we are considering our next investment consistent with this.”

While Toray has focused heavily on the hygiene market for growth in Asia, within its domestic market of Korea its product portfolio is more diverse targeting hygiene, medical, industrial, household goods, filters, agriculture, construction and geotexitles. Lee describes this market as stable, but not growing.

Turning to Toray’s corporate news, in August, parent company Toray Industries, along with Freudenberg, announced it would acquire all shares of Japan Vilene, Japan’s largest nonwovens manufacturer. Under the terms of the agreement, Toray will reportedly hold 25% of the company’s shares while Freudenberg will retain the largest share, 75%. Fruedenberg is currently Japan Vilene’s largest shareholder, holding 33.4% of shares, while Toray has a 17.49% stake.

Once the acquisition is final, Freudenberg and Toray will enter into a shareholders’ agreement, which will require Freudenberg to obtain Toray’s prior consent when making decisions on certain material matters of the company. Additionally, transfer of the shares of Japan Vilene requires consent of the other party, and each party has the preemptive right in proportion to its shareholding ratio when the company issues new shares.

Plants: Korea, China, Indonesia

Processes: Spunbond PP (SS, SSS, SMS, SSMMS, SMMMS, bicomponent), PET (embossed and needlepunched)

Brands: Livsen

Major Markets: Hygiene, medical, protective apparel, industrial specialties, agricultural, upholstery, filtration, construction, geotextiles

A huge boost in Chinese sales translated to impressive corporate growth for Toray Advanced Materials Korea (TAK) in 2013. The company reported sales of about $290 million compared to $256 million the year before due to a 45% jump in sales at Toray Polytech Nantong (TPN), the company’s Chinese division. Korean sales were flat while the company’s third division, TPJ in Indonesia, began contributing to sales in mid-2013.

During the past couple of years, TAK has been aggressively investing in Asia and is now in the process of adding its fourth line in Nantong, China, just eight years after entering the country. With this new line, which was announced in June and is expected to start operation by the end of 2014, the company’s Chinese output will reach 78,000 tons.

Toray established the Chinese site in 2006, added a second line in 2010 and the third line in 2012.

While Toray has always maintained that the Chinese spunmelt operation is one of its company’s most successful businesses, executives are reporting a slowdown in demand for the materials in China. However, this should soon turnaround as the market adapts to a reversal in the Chinese government’s one child policy.

“So many spunmelt investments in China has resulted in quite an oversupply situation in the whole Asian market,” Evan Lee, deputy general manager of Toray’s fiber marketing team. “This had led spunmelt suppliers to either lower their production or their sales prices. If demand does not increase dramatically there will be the need to adjust our strategy.”

Meanwhile, the company’s first Indonesian investment, which came onstream in mid-2013, is nearly sold out and the company is already considering a second line at this site. “The sales situation was good due to rapid growth in Indonesia,” Lee says.

The Indonesian site, located near Jakarta, added 20,000 tons to Toray’s global footprint and broadens its manufacturing footprint, allowing the company to supply all of Asia more easily and effectively.

All of this investment falls in sync with Toray’s strategy of becoming a leading maker of spunbond material in Asia, a goal that will be met with continued investment in China, Indonesia and other countries that can better meet the needs of the regions.

A subsidiary of Japan’s Toray Group, Toray was centered solely on the Korean market before expanding into China and more recently Indonesia. While the company continues to focus on the hygiene market within Korea, a low birth ratio and smaller population has made it less attractive than other Asian countries.

Instead, Toray has been working on expanding in industrial, agriculture, geotextile and consumer car markets. To do this, the company has shifted its investment focus from polypropylene spunbond to polyester, but success in these areas has been challenged by slow economic growth.

“It is not so easy to enter the polyester spunbond market as a new driving force for growth but we will still try to develop this market with new technology and applications,” says Lee.

Plants: Korea, China, Indonesia
Processes: Spunbond PP (SS, SSS, SMS, SSMMS, SMMMS, bicomponent), PET (embossed and needlepunched)
Brands: Livsen
Major Markets: Hygiene, medical, protective apparel, industrial specialties, agricultural, upholstery, filtration, construction, geotextiles

Continuing its aggressive Asian expansion plan is Toray Advanced Materials Korea (TAK). The Seoul, Korea-based company most recently announced it would add the fourth spunbond Line in Nantong, China to help sate demand for disposable baby diapers in China, which is being driven by an improvement in people’s lifestyles. The new spunbond line will be a polypropylene-based SSSS spunbond line capable of making 20,000 tons of material per year.

Including this new line, announced in June, the company’s total Chinese output will amount to 78,000 tons on four production lines. Toray already operates a three-line site in Nantong, which was established in 2006 and expanded twice, once in 2010 and again in 2012.

“Our spunbond business in China is one of the most successful overseas businesses for Toray Group,” says deputy general manager of TAK’s fiber marketing team, Evan (S.Y.) Lee. “We started the third Chinese line in August 2012 and it is nearly fully operational with strong partnerships. Through this investment, we are continuing to hold a leading position as the most advanced polypropylene spunbond maker in China.”

The Chinese operation is being complemented by a new operation in Tangerang, Indonesia, where a 20,000-ton spunmelt line began operating in June 2013. This new investment not only increased capacity but also broadened TAK’s footprint in Asia, allowing the company to supply all of Asia more easily and effectively.

Lee says it’s the company’s goal to continue to be a leading spunbond maker in Asia and the company will continue to expand its spunbond business in China, Indonesia and one other unnamed Asian country.

“We have proceeded with the continuous and planned investment in the Asian market with full consideration before the decision,” Lee says. “But, we worry about the current oversupply situation due to over investments in a short period in certain areas even though the market is growing. There is not much differences between nonwoven suppliers because of similar machines used and manufacturing processes utilized. This can be negative and hinder proper profit management for growth. “

A subsidiary of Japan’s Toray Group, Toray was centered solely in Korea before expanding into China and later Indonesia in the mid-to-late 2000s. In recent years, investment in polypropylene based spunmelt lines for the Korean hygiene market has slowed but the company added a second polyester line there last year to supply geotextile markets.

“We are seeing more growth in demand for high functional nonwovens in industrial applications such as automobiles and filters and construction in Korea and Japan, where diaper penetration in these countries is nearly 100%,” Lee says.