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Toyobo and Indorama forms JV to produce automobile airbag yarns in Thailand

October 26/2020

MOSCOW (MRC) -- Toyobo Co., Ltd. has agreed to set up a joint venture firm to produce yarns for automobile airbags with Bangkok-based Indorama Polyester Industries PCL (IPI), which is under the umbrella of the worlds largest polyethylene terephthalate (PET) producer, Indorama Ventures PCL (IVL), as per Toyobo's press release.

The joint company plans to build a new plant on the IPI factory site in Rayong Province, Thailand, and start operations in 1st Quarter of 2022.

The airbag market is expected to continue growing at three-four percent annually thanks to an increase in the number of airbags installed per vehicle and growth in the proportion of vehicles equipped with airbags in emerging economies. In 2014, Toyobo and IVL jointly acquired PHP Fibers GmbH (PHP), a German airbag yarn maker that held the second-largest share in the world at that time. Since then the relationship has grown stronger with many joint activities carried out between Toyobo and PHP.

Toyobo has long maintained a partnership with IVL, which is committed to expanding its mobility-related business. Given that Toyobo and the IVL group are capable of effectively using their resources in Thailand, they agreed to establish the joint venture company to produce PA66 airbag yarns and ramp up efforts to expand their airbag business. The JV will be integral part of the Indorama Mobility Group.

IVL, with its presence in Thailand, is undertaking the manufacturing for the proposed JV, with 100% offtake by Toyobo for its weaving plant.

Toyobo will diligently meet global clients needs as the sole manufacturer capable of producing and supplying airbag materials ranging from yarn to fabrics at our five operations hubs in Japan, Thailand, China, the United States and Europe.

As MRC reported earlier, IVL restarted its PET plant at Map Ta Phut on February 6, 2020. The plant was shut in mid-January, 2020 for maintenance. Located at Map Ta Phut, Thailand, the PET plant has a production capacity of 110,000 mt/year.

According to ICIS-MRC Price report, contract prices of Russian plants increased by Rb1,000-1,500/tonne this month under the pressure from the growth of the dollar exchange rate against the rouble.

Indorama Ventures Public Company Limited, listed in Thailand, is one of the world's leading petrochemicals producers, a global manufacturing footprint with 59 sites in 20 countries across Africa, Asia, Europe and North America. The company's portfolio is comprises necessities and high value-added (HVA) categories of polymers, fibers, and packaging. Indorama Ventures has approx. 24,000 employees worldwide and consolidated revenue of USD 11.4 billion in 2019.
Author:Margaret Volkova
Tags:PET-granulate, fibers/filaments, packaging, bags / liners, Indorama Ventures PLC, Russia, Thailand.
Category:General News
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