Toyobo Co will set up a joint venture company with Indorama Polyester Industries to produce yarns for automobile airbags. The joint company will build a new plant on the IPI factory site in Rayong Province, Thailand, and start operations in the first quarter of 2022.

Toyobo has long maintained partnership with IVL, which is committed to expanding its mobility-related business. Given that Toyobo and the IVL group are capable of effectively using their resources in Thailand, they agreed to establish the joint venture company to produce PA66 airbag yarns and ramp up efforts to expand their airbag business. The JV will be integral part of the Indorama Mobility Group.

IVL, with its presence in Thailand, is undertaking the manufacturing for the proposed JV, with 100 per cent offtake by Toyobo for its weaving plant. Toyobo will diligently meet global clients’ needs as the sole manufacturer capable of producing and supplying airbag materials ranging from yarn to fabrics at our five operations hubs in Japan, Thailand, China, the United States and Europe.