Toray Industries will spend billions of yen to fortify its fiber and textile business in Southeast Asia, upgrading facilities in Indonesia, Thailand and Malaysia to produce highly functional fiber and adding or building sewing bases in Myanmar, Cambodia and elsewhere.
With the push, Toray plans to achieve its long-term goal of generating 1 trillion yen ($9.7 billion) in sales and 70 billion yen in operating profit in the textile segment in 2016, four years ahead of schedule, President Akihiro Nikkaku said Wednesday in an interview.
For this fiscal year, the fiber and textile business is expected to see an 18% sales gain to 750 billion yen, boosting its operating profit 27% to 55 billion yen and contributing to strong companywide results.
Toray will upgrade synthetic-fiber facilities in Indonesia, Thailand and Malaysia by fiscal 2016 for the purpose of manufacturing highly functional fiber previously made in Japan. These perspiration-absorbing, quick-drying fabrics are generating "strong demand among major sporting goods makers in the U.S. and Europe," Nikkaku said, adding that Toray aims to mass-produce them in Southeast Asia.
The firm is also considering building a fiber mill in Asia in fiscal 2017 or later, possibly in Bangladesh, where Toray has a sewing and dyeing facility, Nikkaku noted.
For the apparel business, group unit Toray International will open sewing facilities in Myanmar and Vietnam and is considering setting up shop in Cambodia and Laos. It will also step up outsourcing to local sewing companies, ensuring stable supplies to clothiers in the U.S. and Europe as well as in its home market.
(Source: Nikkei Asian Review)