Toray to expand premium-grade ABS resin capacity in Malaysia
KUALA LUMPUR, NNA – Japanese textile and chemical products maker Toray Industries Inc. said Thursday it will expand premium-grade ABS resin production in Malaysia to meet growing global demand.
The company will invest 10 billion yen ($88.6 million) to boost transparent type ABS resin output capacity in Malaysia by 21% to 425,000 tons per year by November 2020, a spokeswoman told NNA.
Toray Plastic (Malaysia) Sdn. Berhad, a wholly owned local unit, plans to start construction of a plant on a plot of land adjacent to existing factories in the northwestern state of Penang in the first quarter of next year, she said.
It’s targeting markets in India, Europe and the United States, in addition to China and Southeast Asia.
Annual global demand for high functional ABS resin, including transparent and anti-heat types, stands at two million tons and is expected to increase 4 percent every year, compared to 8.5 million tons of overall demand with annual 3 percent potential growth.
Toray is the leading maker of the transparent type and its total ABS resin output capacity will grow to 497,000 tons annually at its Chiba plant, east of Tokyo, the company said in a statement.
Toray is placing a greater focus on the transparent type of resin for medical use at the Chiba plant while its Malaysian unit will cater to demand for home appliances, automobiles and toys.