SRF Ltd in pact to acquire Toray plant technology

15 Oct 2007

Japan''s Toray Industries, Inc. and Toray Engineering Co., Ltd. have signed a contract with New-Delhi-based SRF Limited to export plant technology for manufacturing industrial polyester filament yarn such as tire cords and conveyer belts.

The production capacity of the plant is expected to be 15,000 tons annually and the plant is expected to start operations in spring 2009.

This project is the first instance in India of a full-scale introduction of technology related to manufacturing plant for industrial polyester filament yarn.

In India, nylon tire cords have been popular in applications primarily for large-sized vehicles such as trucks and buses. However, an increase in the number of passenger vehicles accompanying rapid economic and infrastructure development has been boosting demand for polyester tire cords used for passenger vehicles. At the same time, demand for industrial applications, especially conveyer belts, has been increasing on the back of development of various industries buoyed by the country''s near 10-per cent economic growth rate.

SRF, which has been leading the market as India''s biggest nylon tire cord manufacturer, signed the agreement to introduce technologies related to industrial polyester filament yarn manufacturing plant in order to meet such strong domestic demand for polyester tire cords and conveyer belts.

In India, Toray Group exported technology related to industrial nylon filament yarn manufacturing plant to CEAT Ltd in 1989. Subsequently in 1995, SRF acquired CEAT''s nylon tire cord business and the 1989 technology export agreement has been taken over by SRF. With the new technology export on industrial polyester filament yarn plant, Toray and SRF aim to further deepen the friendly relationship between the two companies to promote multilateral technological cooperation in India.