Toray Advanced Materials held a groundbreaking ceremony on the 23rd in Gumi, North Gyeongsang Province,
for the expansion of its advanced materials plant. (Toray Advanced Materials)
According to Pulse by Maeil Business News Korea,
Toray Advanced Materials Korea (TAMK), a subsidiary of Japan‘s Toray Industries which is a global leader in carbon fiber technology, announced an aggressive expansion of its advanced materials production facilities in Gumi, North Gyeongsang Province. TAMK aims to enhance production of IT films and aramid fibers, high-value materials known for their superior performance and profitability, as part of its strategy to improve profitability and address market dynamics.
The company and the South Korean Ministry of Trade, Industry, and Energy held a groundbreaking ceremony for the new IT film and aramid fiber production plants at Toray ‘s Gumi facility on Wednesday. It plans to invest over $100 million in expanding its production capacity for aramid fibers and polyester films, with construction beginning immediately.
The IT film Plants 13 and 14 are being built to manufacture release films for multilayer ceramic capacitors (MLCCs), with an annual production target of 300 million square meters. MLCCs are crucial components for storing and discharging energy in electronics such as smartphones, computers, and automobiles. With the expected 10 percent annual growth of the MLCC market through to 2030, the demand for MLCC release films is also anticipated to rise. Toray Industries, with its global competitiveness in MLCC release films, aims to strengthen quality and supply stability to meet this growing demand.
The company also announced plans to expand the production of its aramid fiber with the construction of Gumi Plant No. 2, targeting an annual output of 3,000 tons by mid-2025. Combined with the existing output from Gumi Plant No. 1, total annual production is expected to reach 5,400 tons. Aramid fibers are advanced materials known for their strength - five times stronger than steel - and their resistance to heat up to 500 degrees Celsius. They are divided into meta-aramid, with exceptional heat resistance, used for fire-resistant clothing and insulation, as well as para-aramid, which features high strength for use in bulletproof vests, tire reinforcements, and construction materials. Toray produces meta-aramid fibers at its facility.
The aramid fiber market is projected to grow annually by 5 percent through 2030, drawing increasing attention as a future material. The company also plans to incorporate eco-friendly processes, such as expanding the use of undyed raw materials to prevent pollution and promote environmental protection.
Toray Industries has invested around 5 trillion won ($3.62 billion) in Korea over the past 60 years, making it the largest investor among Japanese manufacturers in the country. This investment has created approximately 4,000 local jobs, contributing to the regional economy, the company said.
Toray Industries pledged investment in aramid fiber production during Korean Trade, Industry and Energy Minister Ahn Duk-geun‘s visit to Japan in April 2024. It subsequently signed a memorandum of understanding to invest 500 billion won in advanced materials at the Gumi National Industrial Complex through to 2025, thus securing new growth drivers.
By Chu Dong-hoon and Minu Kim
Copyrights Pulse by Maeil Business News Korea. All Rights Reserved.
Source: Pulse by Maeil Business News Korea (October 24, 2024)