300 million euros in five years to increase the production of Alcantara

Toray Industries on March 17 announced its policy decision to enhance the production capacity of Alcantara, a luxury made-in-Italy material manufactured and sold by its subsidiary Alcantara. The company plans to invest approximately 300 million euros in a phased manner over the next five years in response to the trend in demand to roughly double the production capacity of the plant in Nera Montoro (near Terni, Italy). Demand for Alcantara for automotive interiors is clearly expected to expand given the increase of use in the interior of cars and to the steady growth of automobile production around the world. Alcantara has been adopted as automobile interior material primarily in luxury models for its global brand recognition and various product lineup that respond to customer demand. The demand for electric vehicles is also expanding, reflecting the material’s brand concept that is sustainable and environmentally friendly. Demand for Alcantara is not limited to automobile interior application, as there has been growing new demand for it as a material to decorate consumer electronics devices such as PCs and headphones, which is expected to lead to a shortfall in production capacity of the material in 2019. The policy decision to enhance the production facility is in response to such robust demand. Luxury material Alcantara marketed by Alcantara has built a singular position in the world as a world-class global luxury brand based on the concept of made in Italy with a unique Italian management. At the time of its introduction, Alcantara was adopted for fashion and interior applications, and its usage has currently spread to various settings including the interior of aircraft and water vehicles in addition to automobiles. In recent years, Alcantara has been working on improving the Alcantara brand value through management with emphasis on sustainability from the perspectives of economy, society and environment. As for sustainability in environment, especially, the company has obtained carbon neutral certification for its corporate activities by measuring the carbon dioxide emissions from its business activities and reducing and offsetting it through projects patronized by the United Nations ahead of other European companies. In the Medium-Term Management Program, Project AP-G 2019 announced on February 9, Toray plans to promote AE Project in which the Toray Group aims to expand and advance global business. As an important material brand marketed globally, Toray will further strengthen the distinctive identity of Alcantara of being made in Italy and pursue further business expansion.