Toray Advanced Materials Korea Considers Film Line Expansion
Toray Advanced Materials Korea is reviewing its film line expansion in South Korea as part of a capital expenditure plan for this year valued at ₩300 billion (€209 million). This is in contrast to other chemical companies that have stalled investments due to the current economic landscape.
It was recently reported that the Japanese chemical Toray Group’s Korean subsidiary, Toray Advanced Materials Korea, is in the final review stage for investment to add film lines at its plant in Gumi, North Gyeongsang Province, South Korea.
The investment is in constrast to others in the industry set to sell or lower their film line usage due to demand for TVs and other appliances amid the economic downturn. Korean chemical companies especially remain cautious about expanding as Chinese firms have been increasing capacity to reduce import reliance.
“This is part of the company’s strategy to boost its market share later by making a pre-emptive investment when its rivals remain shy about investment,” said a Toray Advanced Materials Korea source to The Korean Economic Daily. “Film orders are now low but TV demand will improve should the economy recover.”
This is part of TAK's ₩300 billion (€209 million) facility and stake investment set for 2023, a more than 3x increase from 2022. Last year due to uncertainty from the pandemic, the company cut investment to ₩90 billion (€63 million) from ₩190 billion (€133 million) in 2021.
Toray Advanced Materials Korea entered the battery separator film market after it acquired a 70% stake in Toray Battery Separator Film Korea Ltd. from its Japanese parent in June. Battery separator films are used in lithium-ion secondary batteries.
