Toyobo Investing 10 Billion Yen in Airbag Business

1-5%e6%9d%b1%e6%b4%8b%e7%b4%a1Toyobo Co., Ltd. will scale up its production of fabrics and yarn for automobile airbags by investing 10 billion yen in plants and equipment globally from fiscal 2017 to 2020.

As the first step, Toyobo will separate the fabric production plant for airbags from the existing fabric plant in Thailand, and establish a joint-venture manufacturing company with a local conglomerate. The company plans to double its production capacity by in-house production.

The investments are aimed at enhancing the company’s international presence by solidifying its supply of nylon filaments and fabrics for airbags in the global market.
Toyobo has been a principal supplier of filaments and fabrics for airbags to Japanese automobile makers. To cope with airbag makers’ demands, the company has four fabric production bases around the globe: Japan, Thailand, China and North America.

The airbag market is projected to grow at an annual rate of 6%; to meet this demand growth, Toyobo is considering setting up new bases for producing airbag fabrics globally from 2017.

Toyobo will build a new JV company, Toyobo Saha Safety Weave Co., Ltd., for the production of airbag fabrics in Thailand, and plans to double its production capacity by in-house production.

By investing 10 billion yen in plants and equipment, Toyobo will enforce its position as the only maker in the world capable of supplying nylon yarns and fabrics in Asia and North America.

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