Toyobo, Indorama Ventures in joint venture for airbag business
BANGKOK, NNA - Thailand’s major polyethylene terephthalate (PET) manufacturer Indorama Ventures Public Co. Ltd. (IVL) has entered into a joint venture with Japan’s fiber producer Toyobo Co. Ltd. to capitalize on the growing automotive airbag market.
Its subsidiary, Indorama Polyester Industries Public Co., announced its decision to set up a factory in Thailand with Toyobo to produce airbag yarns in its filing to the Stock Exchange of Thailand on Monday.
Both companies are set to hold equal shares in the joint venture company, Toyobo Indorama Advanced Fibers Co. Ltd.
The global airbag market is expected to grow by a strong 3 to 4 percent annually, according to Indorama Ventures.
Toyobo and Indorama Ventures previously collaborated for the acquisition of German airbag yarn maker PHP Fibers GmbH in 2014.
“Since then the relationship has grown stronger with many joint activities carried out between Toyobo and PHP,” said Indorama.
The company said Toyobo Indorama will cater to the rising demand for airbags and fabric yarns in markets such as Japan, China, the United States, Europe and Thailand.
Their new plant, which is scheduled to start operations in first Quarter 2022, will occupy 12,875 sqm of space. It is expected to produce more than 11,000 tons of yarn yearly.