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Toray To Enter Indonesia

May 3, 2011

20,000-ton line to be complete in '13

Toray Industries and Toray Advanced Materials Korea Inc. will begin making polypropylene spunbond nonwovens in Indonesia in 2013. The companies plan to establish a subsidiary company, P.T. Toray Polytech Jakarta (TPJ), at the group’s site in Tangerang, Indonesia, in September. The new operation will include a production facility with an annual capacity of approximately 20,000 tons, which should start full scale operations in June 2013.

Demand for disposable baby diapers is expected to grow at a rapid pace in the ASEAN countries on the back of high economic growth and changes to lifestyle brought about by rising national incomes. Particularly in Indonesia, the market for disposable baby diapers is estimated to grow at a pace of 14% a year, increasing from approximately 1.9 billion diapers in 2010 to 3.7 billion diapers in 2015. This has prompted major hygiene product manufacturers to build new production facilities and expand existing facilities.

Toray Group currently makes 43,000 tons of spunbond nonwovens at TAK in Korea as well as 38,000 tons at Toray Polytech (Nantong) Co., Ltd. (TPN) in China. These nonwovens aresold to a number of countries in the Asian market including Japan, Korea and China. Additionally, the company has already announced a plan to add 20,000 tons a year to its TPN output this year. The new facility in Indonesia will bring Toray Group’s total polypropylene spunbond production capacity to about 121,000 tons a year in 2013.

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