Nylon for Air Bags: Estimated Demand of 100,000 Tons in 2005

Asian Textile Business, Sep 2004

There is an expanding demand for nylon 66 yarns to be used for air bag applications. The estimated global demand in 2003 is 70,000 tons; however, there is a forecast that this demand will expand to 100,000 tons in 2005.

The estimated share of air bag textiles in world markets during 2003 is: Invista, 32,000 tons or nearly 50% of the 70,000 tons equal to the global production; Polyamid High Performance Ltd., 23,000 tons or nearly 30%; Toray Industries, Inc., 7,500 tons; and Toyobo Co., Ltd., 5,400 tons. These four producers accommodate most of the global demand. Toray and Toyobo have carried out plant expansions since 2003.

As for Toray, Thai Toray Synthetics Co., Ltd ., Toray Group firm, newly installed nylon equipment with an annual production capacity of 3,000 tons at the end of 2003 and plans to expand the capacity to 6,000 tons at the end of 2005 by adding another 3,000 tons. In September 2003. Toray's Okazaki plant in Japan expanded its capacity by 2,000 tons to 9,500 tons. As a result, nylon yarn production will rise from 7,500 tons (Japan only) in 2002 to 15,500 tons (Japan and Thailand combined) at the end of 2005.

Lucky tex (Thailand) Public Company Limited, another Toray Group firm, had a monthly capacity for weaving 100,000 meters of basic cloth for air bags as of March 2004. There is a plan to expand this capacity to 300,000 meters. With the introduction of water-jet looms in August 2004. its joint-venture factory in China will have a monthly weaving capacity of 100,000 meters. Nevertheless, it is likely that its operations for the first six months are intended for checking the quality. Therefore, it is thought that actual mass production will start in February 2005.

As of January 2003, Toyobo Co., Ltd. had a production capacity equivalent to 5,400 tons annually. But this capacity rose to 6,500 tons in January 2004 and then to 8,000 tons this May. Toyobo is going to increase this capacity to 10,000 tons in 2005. Toyobo has also increased the production of cloth in line with the production rise of yarn. Weaving will be done by Erawan Textile Co., Ltd., its affiliated group firm in Thailand. The monthly production capacity as of January 2004 was 500,000 meters, but doubled to 100,000 meters in April.

Asahi Kasei Fibers Corporation will market nylon 66 "Leona" yarn for air bag applications. So far Asahi Kasei has been involved in tire cords alone, but the company is now going to develop a hopeful air bag market.

Then, three firms, Asahi Kasei, Sumitomo Corporation and Suminoe Textile Co., Ltd. announced the establishment of Sumisho Airbag Systems Co., Ltd., which is a curtain air bag manufacturing and marketing firm. A major portion of capital comes from Sumitomo and a person from Sumitomo will assume the post of president.

This company is going to manufacture one piece woven type air bags by jacquard looms. Its major operations will focus on selling to Autoliv Inc., the world's largest air bag parts manufacturing firm in Sweden. Projected sales are 25 million yen for 2004, 1 billion yen for 2005 and 8 billion yen for 2008.