Indorama Ventures (IVL) this week celebrated the completion of a new plant to manufacture high-performance nylon yarns for automotive airbags.

The new plant in Rayong, Thailand, was constructed by Toyobo Indorama Advanced Fibers (TIAF), a joint venture established with Toyobo in November 2020.

The plant, which has been built on the site of Indorama Polyester Industries, will deliver 11,000 tons of high-performance yarn per year to meet global demand for airbags that is expected to grow by 3-4% annually as automakers equip vehicles with more airbags and emerging economies require cars to adopt more safety features. Test production is scheduled to start in October 2022 with the goal of starting commercial production in the middle of 2023.

Ikuo Takeuchi, president and representative director of Toyobo, and DK Agarwal, Indorama Ventures CEO, led the speeches at the ceremony in Rayong, witnessed by Takuro Tasaka, Minister of Embassy of Japan in Thailand and IVL representatives including Aloke Lohia, group CEO and Uday Gill, chief strategy officer.

 “Together, Indorama Ventures and Toyobo represent a winning combination of specialist technical and management expertise, years of close collaboration, and deep knowledge of the automotive safety sector,” said DK Agarwal.  “IVL has many partnerships such as this one across our integrated global value chain, which puts us in a strong position to drive leadership in key sectors where we see potential for growth and mutual collaboration. The completion of this new plant is a milestone event in our long-held commitment to growing our mobility business.”

“The automotive industry is one of the major industries in both Japan and Thailand,” added Minister Tasaka. “The industry is in the midst of a transformation to electric vehicles and airbags are the cornerstone of safety in any vehicle. Japan will support the safety of mobility in Thailand by using leading and high-value-added textile technology.”

In 2014, Indorama Ventures and Toyobo jointly acquired Germany’s PHP Fibers GmbH, a leading airbag yarn maker. Since then, both companies have strengthened their relationship with a focus to expand in the automotive safety sector.

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