Toray Industries, Inc. has announced plans for a new production site in Guangdong Province, China, to manufacture high-performance resin compounds. This strategic move is part of Toray Plastics (China) Co., Ltd.'s efforts to meet the increasing demand for materials with superior heat, chemical resistance, and mechanical strength, which are essential in automotive electrical components, electrical connectors, and electronic devices. The new facility will be located at the premises of Toray Resins (Foshan) Co., Ltd., with operations slated to begin in April 2025.

As part of the expansion, Toray is also considering transferring a portion of its production from Toray Plastics (Shenzhen) Ltd. to the new site. Despite China's slow economic recovery, the country remains a highly attractive market due to its large automotive industry, projected to grow at an annual rate of 5%. The Chinese government's support for new energy vehicles (NEVs), alongside stringent environmental regulations, is expected to drive an increase in demand for high-performance resins, particularly in the automotive sector.

Toray sees this market shift as a significant opportunity to enhance its presence in China. The new plant aims to stabilize the supply of high-performance resins to meet the growing demand from southern China and surrounding regions, especially for applications in NEVs, advanced communications, and electrical and electronic components, including those used in solar power generation. The facility will also serve as a key hub for Toray’s global operations, focusing on Southeast Asia and other international markets.

Toray’s decision to build this new plant aligns with its strategy to enhance its supply chain network and expand its business internationally. By increasing local production capabilities, Toray aims to offer greater agility, support new product development, and meet evolving customer demands. The company is committed to growing its operations worldwide, with a particular focus on the increasing use of high-performance resins in industries like automotive and electronics.

This new production site marks an important step for Toray as it capitalizes on the robust growth potential of China’s automotive and technology sectors. By investing in localized manufacturing and focusing on cutting-edge applications like NEVs, Toray is positioning itself to better serve the expanding demand for high-performance materials in the region.

Toray Plastics (China) Co., Ltd., established in April 1995 and headquartered in Kowloon, Hong Kong, serves as the administrative hub for Toray’s plastic business operations in China. Wholly owned by Toray Industries, Inc., the company is led by Managing Director Yasutoshi Tsukamoto. To strengthen its manufacturing capabilities, Toray Resins (Foshan) Co., Ltd. was founded in June 2023 in Nanhai District, Foshan, Guangdong Province. With a capitalization of RMB 450 million, the company is 90% owned by Toray Plastics (China) Co., Ltd. and 10% by Toray Industries (China) Co., Ltd. Under the leadership of Yasutoshi Tsukamoto, it focuses on the production and marketing of high-performance resin compounds, supporting Toray’s expansion in China’s growing materials industry.