Toyobo/Indorama jv to build plant for vehicle airbag yarns

Toyobo/Indorama jv to build plant for vehicle airbag yarns

Japanese firm Toyobo Co. is to set up a joint venture firm with Bangkok-based Indorama Polyester Industries PCL (IPI), which is under the umbrella of the world’s largest PET producer Indorama Ventures, to produce yarns for automobile airbags. The joint company plans to build a new plant on the IPI factory site in Rayong Province, Thailand, and start operations in 2022, with a production capacity of 11,000 tonnes/year.

The airbag market is expected to continue growing at 3-4% annually thanks to an increase in the number of airbags installed per vehicle and growth in the proportion of vehicles equipped with airbags in emerging economies. In 2014, Toyobo and Indorama jointly acquired PHP Fibers GmbH, a German airbag yarn maker that held the second-largest share in the world at that time. Since then the relationship has grown stronger with many joint activities carried out between Toyobo and PHP.

Toyobo says it has long maintained a partnership with Indorama which is committed to expanding its mobility-related business. Given that Toyobo and the Indorama group are capable of effectively using their resources in Thailand, they agreed to establish the joint venture company to produce PA66 airbag yarns and ramp up efforts to expand their airbag business. The jv will be integral part of the Indorama Mobility Group.

Since Indorama has a presence in Thailand, it is undertaking the manufacturing for the proposed jv with 100% offtake by Toyobo for its weaving plant.

Toyobo adds that it is the sole manufacturer capable of producing and supplying airbag materials ranging from yarn to fabrics from its five operations hubs in Japan, Thailand, China, the US and Europe.


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