Toray to Boost Carbon Fiber Output in Mexico

Tokyo, Feb. 22 (Jiji Press)--Toray Industries Inc. <3402> said Wednesday it will invest about 10 billion yen to double its annual carbon fiber production capacity in Mexico to more than 10,000 tons. Toray aims to meet growing demand for use mainly in wind power generators, at a time when some businesses have grown cautious about investment in Mexico due to U.S. President Donald Trump's pledge to renegotiate the North American Free Trade Agreement, a three-way accord concluded by the United States, Canada and Mexico. Toray plans to increase the capacity of the Mexican plant of U.S. subsidiary Zoltek Companies Inc. Related production will start in late 2017. The additional production will mostly be for export to Asian markets, including India, with some output expected to be shipped to the United States. With carbon fiber likely to find wider application in automobiles, Toray is discussing a further boost to its production, official said. After the inauguration of Trump, the future of Mexico as an export base for North America has become increasingly uncertain. But at a news conference on Feb. 9, Toray President Akihiro Nikkaku said that, in principle, no change would be made to the company's business plans for Mexico. END