Toray Increasing Borrowing to Fund Further Expansion
Toray have plans to increase borrowing this year to help fund expansion, the largest producer of Carbon fibre in the world will look for over $850 million of new financing in the year ending March 2013, a significant increase on the previous period.
The trend for lighter weight materials for the automotive and aerospace sectors have boosts Toray’s yearly sales to around 2 trillion yen in around 3 years, which is up 16 percent on the forecast for the current period.
Aggressive capital spending is at the centre of Torays current business plan, the company will use the extra funding to expand current facilities. Toray in April began a three-year 350 billion yen capital spending plan aimed at boosting sales of carbon fibre composites and its mainstay synthetic fiber. It has 160.7 billion yen of bonds and loans outstanding, according to data compiled by Bloomberg.
The company is building South Korea’s first carbon fibre plant and increasing and expanding production in the United States, Japan and France to help increase its global output capacity of the material to 27,100 tons by 2015. Operating profit in the business will surge 56 percent to 12 billion yen this fiscal year, accounting for 10 percent of its income, it said in May.
Toray have recently sold 20 billion yen of 10-year bonds in its first offering of non-convertible notes in nine years. This was the first time Toray have tapped the market for a straight bond since a 10 billion yen offering of 1.61 percent 10-year securities in September 2003, data compiled by Bloomberg show.