Toray and Toray Advanced Materials Korea Inc. (TAK) announced on the 20th that they will expand their production facilities for high-performance polypropylene long-fiber nonwoven fabric (PP spunbond) in China. PP spunbond is a nonwoven fabric characterized by its hydrophilic, waterproof, and UV-resistant properties, and is primarily used in disposable diapers, sanitary products, and surgical gowns. PP spunbond is produced in China by Toray Advanced Materials (Nantong) Co., Ltd. (TPN), a joint venture subsidiary of Toray and TAK. The expansion facility is scheduled to begin operation in December 2014, increasing annual production capacity to approximately 78,000 tons. The two companies' decision to expand their PP spunbond production facilities is driven by the rapid growth of China's baby diaper market. Demand was approximately 14 billion diapers per year in 2012, and is expected to grow to approximately 38 billion diapers by 2020. Major sanitary goods manufacturers are already expanding their production facilities in China, while mid-sized manufacturers are entering the market one after another, resulting in fierce material development and cost competition for disposable diaper materials.

This PP spunbond facility expansion is also part of Toray's "Asia and Emerging Markets Business Expansion Project (AE)." The Asian baby diaper market, centered on China, India, and ASEAN countries, is expected to grow significantly from approximately 29 billion diapers per year in 2012 to approximately 65 billion diapers by 2020. Accordingly, PP spunbond demand in Asia is predicted to expand from approximately 290,000 tons per year in 2012 to approximately 750,000 tons per year in 2020.

Toray Group currently has three PP spunbond production bases in Korea, China, and Indonesia. Going forward, the company plans to expand its business in the Asian market by selling products that meet the sophisticated needs of each country.