Toray Group announced a $366 million plan to expand its production facilities in South Korea by 2025, reflecting its significant commitment to the market where it has operated since 1963. This investment includes new aramid fiber and carbon fiber production lines, driven by increasing domestic demand and Toray’s strategy to position Korea as a major global sales and export hub.

On May. 22, Toray Group, the global leader in carbon fiber, announced that it will invest a total of 500 billion won ($366.7 million) to expand its production facilities in the Gumi National Industrial Complex by 2025.

Toray, a prominent foreign investment company, entered the Korean market in 1963, before the normalization of diplomatic relations between Korea and Japan, and has invested a total of $3.6 billion in the textile sector over the past 60 years.

Toray Advanced Materials will use this investment to add a second aramid fiber production line with an annual capacity of 3,000 tons at its Gumi Plant 1.

Last year, the company began expanding its third carbon fiber production line at Gumi Plant 4, which will have an annual capacity of 3,300 tons. This expansion is scheduled to be completed and operational by the second half of 2025, bringing Toray’s total annual carbon fiber production capacity to 8,000 tons.

Additionally, last year, Toray decided to add a production facility with an annual capacity of 5,000 tons for PPS resin at its Gunsan Plant in the Saemangeum Industrial Complex in Jeollabuk-do, aiming for operation by 2024.

Toray’s recent significant investments in S. Korea are attributed to the stable sales network it has established over more than 60 years of operation in the country. As S. Korea’s advanced industries have developed, the domestic demand for products such as carbon fiber, which Toray produces, has also increased.

Another reason for the increased investment is that Toray Advanced Materials, Toray Group’s Korean subsidiary, primarily produces aramid fiber, which is known as a ‘super fiber.

Aramid fiber is five times stronger than steel and can withstand high temperatures up to 500 degrees Celsius. It is used in various industries, including electric vehicle drive motors, heat-resistant protective clothing, and ultra-high-voltage transformer materials, with its demand steadily growing. A company representative stated, “We are positioning Korea as a major global sales and export hub.”

Source: The Chosun Daily