- Company expanding U.S., France, South Korea plants on bounce in plane demand
According to Nikkei Asia article published on January 13, 2023, Japanese chemicals giant Toray Industries will pour 100 billion yen ($780 million) into increasing production capacity for carbon fiber materials used in airplanes and hydrogen fuel tanks by 2025, Nikkei has learned.
The company aims to raise output of carbon fiber reinforced plastics (CFRP) in the U.S., South Korea, and France.
The move comes as the aviation industry recovers from its post-pandemic low. As COVID restrictions are lifted around the world, the opening of the global economy has sparked greater demand for raw materials.
Toray sells carbon fibers to the aviation industry and others, such as manufacturers of sporting goods. The company will increase production for general industrial use, including the energy sector.
Raw material demand for the aviation industry is beginning to bounce back. U.S. aircraft maker Boeing announced it had received orders for 774 jets last year, the highest number since 2018 and a 60% increase from its order book in 2021.
This is a silver lining for Toray, which saw demand from the aviation industry evaporate at the start of the pandemic. However, as the company used existing production capacity initially intended for aviation to meet growing demand from other industries during the pandemic, it now needs new capacity as the aviation industry recovers.
While details remain to be worked out, Nikkei estimates Toray's capacity for general industrial applications will rise by 20%. The plan includes raising production of materials used for wind turbine blades, which are mainly produced in Hungary and Mexico.
The company is expected to lay out specifics in March, when it announces its latest management plan through 2025. It is expected to lift its revenue target for the CFRP business from an estimated revenue of 282 billion yen for this fiscal year ending March.
