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Japan's Toray Industries announced last week that the company has decided to restart its previously announced expansion plan for its carbon fiber production facility in Matsumae-cho, Ehime Prefecture, Japan. The expansion will build a new production line of 1,000 tons per year, mainly producing special small tow carbon fiber, with a total investment of approximately 16 billion yen ($194 million). Toray Industries expects the new production line to start production in September 2012.
Toray Industries has announced this expansion plan as early as 2008, when the new production line was expected to start production in July 2009. However, due to the impact of the financial crisis, the demand situation in the global carbon fiber market deteriorated sharply, and Toray Industries has therefore postponed its expansion plan. After entering 2010, with a full recovery of the economy and under a good market environment, Toray Industries has decided to resume the implementation of this expansion plan.
It is understood that after the production line is put into operation, the total carbon fiber production capacity of Toray Industries will increase to 18,900 tons per year, and its capacity at the carbon fiber plant in Ehime Prefecture will reach 8,300 tons per year.
Toray Industries Co., Ltd. stated that in 2010, the demand for PAN-based carbon fiber in the world has exceeded 30,000 tons, and it is expected that the average annual growth rate will exceed 15% in the future. Small tow carbon fiber is mainly used in the field of automotive parts, bicycle racks, and industrial robots. It can also be applied to secondary structural components of commercial aircraft such as moving parts, power blades, and spoilers. Toray Industries believes that the demand for small tow carbon fiber market is expected to grow rapidly, especially in the fields of environment and energy and commercial aircraft.
In May 2010, Toray Industries of Japan and European Aerospace Defense Aerospace Co. signed a long-term supply agreement, Toray will supply carbon fiber prepreg to Airbus for a time span of 15 years until 2025. Some Japanese media claimed that the total value of the agreement reached 3.2 billion U.S. dollars. Toray previously supplied carbon fiber to European Aerospace Defense Aerospace through a third-party prepreg manufacturer. The signing of this agreement will change the status of such third-party supply, and Toray will directly supply carbon fiber products to European Aerospace Defense Aerospace.
Another major carbon fiber manufacturer in Japan, Mitsubishi Rayon’s original plan for the construction of a new carbon fiber project in Otake, Japan, has recently been restored. Previously, the construction of the project was temporarily suspended in March 2009 due to the harsh business environment and the downturn in the carbon fiber market. The project was originally scheduled to be put into production in the fourth quarter of 2009. Now, it is not until the second quarter of 2011 that production will begin. It is understood that Mitsubishi Rayon’s investment in the project will reach 12 billion yen (US$135 million), with a designed capacity of 2,700 tons/year.
To meet the growing demand from industrial applications, Mitsubishi Rayon has accelerated the construction of the project. Analysts said that the demand for carbon fiber in industrial applications such as blades for wind power generation, pressure vessels and automobile manufacturing will grow for a long time.
With the full recovery of the economy, the demand for carbon fiber in sports products, industry, and aerospace applications has begun to grow strongly. Carbon fiber investment projects that had previously been shelved by Japanese companies have recently "revived."