Toray’s Business Strategy for
Carbon Fiber Composite Materials
September 21, 2012
© All Nippon Airways
Toray Industries, Inc.
Senior Vice President
Moriyuki Onishi
Copyright 2012 Toray Industries, Inc. All Rights Reserved
Business Categories and Strategies
Foundation Businesses
Fibers & Textiles
Plastics & Chemicals
◆Expand businesses in growth business fields and regions and steadily increase revenues
and profits
◆Improve products and business models to expand earnings and allocate management
resources to growth business fields
Steadily drive business expansion and profit growth of the Group
Strategically Expanding
Businesses
IT-related Products
Carbon Fiber
Composite Materials
◆Focus on growth business fields including informationtelecommunication, automobiles and aircraft, and energy saving and new energy
◆Allocate management resources with priority
◆Implement measures including M&A and business alliance
Drive revenue and profit growth over the medium- and long-term
and achieve strategic and aggressive business expansion
Intensively Developing and
Expanding Businesses
Environment & Engineering
Life Science
◆Allocate management resources with priority
◆Develop and expand businesses by measures including M&A and business alliance
Develop as the next driver for revenue and profit growth to follow
IT-related products and carbon fiber composite materials
Copyright 2012 Toray Industries, Inc. All Rights Reserved
1
Group-wide Projects
under “Project AP-G 2013”
Three themes in AP-G 2013 that would work more effectively when practiced
on a group basis are implemented as a group-wide project.
Green Innovation Business Expansion (GR) Project
Toray Group will use its strength in chemistry to develop “Green Innovation
Businesses” on a global scale to provide solutions to the environmental issues
and energy and resource issues, towards the independence from petroleum
resources and the realization of a low-carbon society.
Asia and Emerging Country Business Expansion (AE) Project
Toray Group will seek to aggressively develop and expand businesses in Asia
and emerging countries in other regions that are expected to realize major
economic growth.
Total Cost Reduction (TC-II) Project
Toray Group will continue cost reduction initiatives to reinforce the robust
business footing required to achieve its objective of becoming a corporate
group that continually increases revenues and profits.
Copyright 2012 Toray Industries, Inc. All Rights Reserved
2
Position of Carbon Fiber Composite
Materials Business under GR Project
Aim for substantial expansion as a core business of Green Innovation
New Energy
Energy Saving
Alternative fuel
Weight saving
Natural gas tank
© Luxfer
© Hexagon
© Boeing
© Lincoln Composites
Tube trailer tank
© Toyota Motor
Fuel cell
© Airbus
Hydrogen gas tank
Efficiency enhancement
Battery-charging
flywheel
© CTC
© Daimler AG
Electric cable core
© Areva Wind/Jan Oelker
© Beacon Power
Large wind-power blade
Copyright 2012 Toray Industries, Inc. All Rights Reserved
Toray’s Contribution to CO2 Abatement
Volume of
CO2 Emissions
(million tons)
50
2007
2010
Around 2015 Around 2020
0
50
CO2 Reduction
by
100
Toray’s Product
(million tons)
150
200
More contribution
to CO2 reduction
by Toray’s Product
250
<Effect of CO2 Reduction by Toray>
Year 2007 16 million tons/year
Around Year 2020 200 million tons/year
Copyright 2012 Toray Industries, Inc. All Rights Reserved
4
LCA (JCMA Model)
(Japan Carbon Fiber Manufacturers Association (JCMA) modeling: collaboration with; Tokyo Univ. Prof. Takahashi ,
Prof, Rinoie; Toyota Motor Corp.; All Nippon Airways Co., Ltd.; The Boeing Co. (US))
Carbon
Carbon fiber：Four
fiber：Four times
times lighter
lighter than
than steel,
steel, ten
ten times
times stronger
stronger than
than steel,
steel, rustproof,
rustproof, etc.
etc. →
→ ideal
ideal for
for structural
structural material
material
Automobile
Aircraft
CFRP
1,500
80
ＣＦＲＰ
CFRP 17%
Others
1,000
500
0
Lightens auto weight by 30%
1,380kg
Conventional model
nonferrous
metal
Steel
970kg
CFRP model
< Per ton of carbon fiber>
Volume of CO2 emissions
from the production of CFRP
Body weight (Ton)
Vehicle weight(Kg）
CFRP for 17% of auto weight
CFRP
CFRP for 50% of total structural elements
70
CFRP
CFRP 50%
60
40
30
20
10
0
Steel
CFRP 3%
Lightens 20% by weight
of structural elements
60 tons
B767 conventional aircraft
Volume of CO2 emissions
from the production of CFRP
＊including carbon fiber manufacturing
Synthesis / Carbonization
20 tons
▲50 tons
Light weight
↓
titanium
50
<Per ton of carbon fiber>
Life cycle
CO2 reduction＊
Others
Aluminium
48 tons
B767 CFRP Aircraft
(B787-compliant by weight)
Life cycle
CO2 reduction＊
＊including carbon fiber manufacturing
Synthesis / Carbonization
▲1,400 tons
20 tons
Improvement of
fuel efficiency
Usage
Usage of
of carbon
carbon fiber
fiber will
will contribute
contribute substantially
substantially to
to the
the reduction
reduction of
of CO
CO22 emissions
emissions over
over the
the total
total life
life cycle.
cycle.
Copyright 2012 Toray Industries, Inc. All Rights Reserved
5
Business Forecast of Carbon Fiber
Composite Materials Business in Medium-term
Management Program “Project AP-G 2013”
(Billion yen)
Consolidated Net Sales
(Billion yen)
Consolidated Operating Income
30
200
150
20
100
10
50
69.9
0
7.7
0
FY 2011
Actual
FY 2013
Target
Around
FY2015
Image
FY 2011
Actual
FY 2013
Target
Around
FY 2015
Image
Copyright 2012 Toray Industries, Inc. All Rights Reserved
6
Business Environment and
Market Structure
Copyright 2012 Toray Industries, Inc. All Rights Reserved
7
Carbon Fiber Market Revolution
© CTC
（Ktons/year）
© Luxfer
© Daimler AG
© Airbus
© Boeing
Boeing 787
Airbus A380
0
1970
© Airbus
Selected for primary structure of
Boeing 777
Start of Manufacture of Torayca
50
© Areva Wind/Jan Oelker
Full-scale expansion
in automobile application
100
Full-scale expansion in
industrial application
© JAXA
Selected for primary structure of
Airbus A320
Tennis racket and Carbon Golf Shaft Boom
Artificial Satellite
150
Industrial Application
© Boeing
Aerospace Application
Sporting Goods Application
1975
1980
1985
1990
1995
2000
2005
2010
2015
2020
Copyright 2012 Toray Industries, Inc. All Rights Reserved
8
Global Demand Forecast
(Ktons/year)
CAGR
150
(2011-2020)
Total Market
Industrial
100
140
16%
18%
Sporting Goods
Aerospace
7%
12%
70
50
32
31
24
33
37
41
48
0
2007 2008 2009 2010 2011 2012 2013
2015
2020
Copyright 2012 Toray Industries, Inc. All Rights Reserved
9
Carbon Fiber Demand
by Application & Area
Aerospace
Sporting Goods
Windmill
Sporting
Goods
Aerospace
Automobile
Pressure Vessel
Civil Engineering
Aero
space
Compounds
Others
Automobile
China・Taiwan & Other Asia
Windmill
（9.4Ktons/year）
Pressure
Vessel
North
America
Europe
（8.1Ktons/year）
（15.5Ktons/year）
Japan
（3.6Ktons/year）
Total Global Demand
37Ktons/year
(in 2011：estimated by Toray)
Copyright 2012 Toray Industries, Inc. All Rights Reserved
Classification and Application of
Carbon Fiber TORAYCA®
Classification by
Mechanical characteristics of
Regular carbon fiber
Carbon fiber TORAYCA® series
T1000
Tensile strength（Gpa)
7.0
6.0
5.0
T1000G
T700S
High modulus
carbon fiber
M35J
T400H
M40J
4.0
5.0
M50J
M60JM65J
T300
M40
4.0
3.0
M46
2.0
2.0
200 300
Aircraft
Secondary Highstructure performance
Industrial use
Space
Special
Sporting goods
M46J M55J
M30
M50
1.0
100
Aircraft
Primary structure
Space
6.0
T800S/T800H
T300J
3.0
7.0
High-strength
carbon fiber
400
500
600
Tensile modulus（Gpa)
700
Industrial use
Sporting goods
1.0
100
200 300
400
500
600
700
Tensile modulus （Gpa)
Copyright 2012 Toray Industries, Inc. All Rights Reserved
11
Examples of Application
-Aerospace-
Boeing 777
Satellite
Boeing 787
©Boeing
©Boeing
Primary / Secondary structure
CFRP usage : Approx. 10 ton
Primary / Secondary structure
CFRP usage : Approx. 35 ton
Airbus A320
Airbus A380
©Airbus
Primary / Secondary structure
CFRP usage : Approx. 2 ton
© JAXA
Rocket
©Airbus
Primary / Secondary structure
CFRP usage : Approx. 35 ton
© JAXA
Copyright 2012 Toray Industries, Inc. All Rights Reserved
12
Examples of Application
-Environment and Energy-related -
Wind power blade
Tube trailer tank
Battery-charging flywheel
© Beacon Power
© Areva Wind/Jan Oelker
Tidal power blade
Image courtesy of Tidal Generation Ltd
Electric cable core
Fuel cell
© CTC
Copyright 2012 Toray Industries, Inc. All Rights Reserved
13
Examples of Application
- Automobile -
© Fuji Heavy Industries
Toray concept EV
TEEWAVE® AR1
© Nissan Motor
Hood
© Luxfer
Compressed natural
gas tank
Roof
Propeller shaft
© Hankuk Fiber
CFRP body panel for bus
Copyright 2012 Toray Industries, Inc. All Rights Reserved
14
Examples of Application
- Industrial Use -
© Hankuk Fiber
© Toshiba Medical Systems
Body for high-speed train
X-ray top panel
© Yaskawa Electric
Robot hand for
liquid crystal panel
© Sony
PC housing
Bridge pier
reinforcement
Copyright 2012 Toray Industries, Inc. All Rights Reserved
15
Example of Application
- Sporting Goods -
Fishing rod
©YONEX
© PINARELLO
Bicycle
© Warrior
Hockey stick
©MIZUNO
©DUNLOP SPORTS
Racket
Golf shaft
Softball bat
Copyright 2012 Toray Industries, Inc. All Rights Reserved
16
Current Status of Toray
Copyright 2012 Toray Industries, Inc. All Rights Reserved
17
Progress of the Basic Strategies set up at
the Last IR Seminar (April, 2008)
Maintain and strengthen overwhelming competitive advantages
in aircraft application

Started production lines for Boeing 787
US : precursor / carbon fiber / prepreg one line each
Japan : precursor / carbon fiber one line each


Signed a long-term basic supply agreement with Airbus (May, 2010)
Started production of the tail wing parts of MRJ （Mitsubishi Regional Jet）
Develop advanced technologies for automotive market
expansion

Expanded the A&A Center in Nagoya
Opened the Automotive Center (AMC) (June, 2008)
Opened the Advanced Composite Center (ACC) (April 2009)


Acquired 21% shares of ACE Advanced Composite
Engineering (ACE) in Germany (December, 2008)
Established a joint venture Euro Advanced Carbon Fiber
Composites GmbH (EACC) with Daimler AG in Germany
to produce and sell CFRP automotive parts (June, 2011)
AMC
ACC
Copyright 2012 Toray Industries, Inc. All Rights Reserved
18
Progress of the Basic Strategies set up at the
Last IR Seminar (April, 2008)
Improve competitiveness in quality and cost through
enhancement of technical capabilities

Developed A-VaRTM (Advanced-Vacuum assisted Resin Transfer Molding)
technology and adopted it to mass production
Tail wing Parts for MRJ

Developed High-cycle RTM (Resin Transfer Molding) technology and
adopted it to mass production
Established EACC
Expanded technical centers worldwide

- enhanced technical centers in Europe and the US
- established Advanced Composite Materials Technical Center at
Toray Advanced Materials Korea in the Republic of Korea
- set up development and technical service function related to composites at
Toray Advanced Materials Research Laboratories (China)
Continuously expand production capacity worldwide
Enhance competitiveness and business scale in industrial market


Commence full-scale production of carbon fibers in the Republic of
Korea (scheduled in January 2013 / 2,200 tons)
Increase worldwide production capacity at four production bases
(Japan, US, France and the Republic of Korea)
Japan : precursor / carbon fiber one line each
USA & Republic of Korea : carbon fiber one line each
France: precursor one line
Copyright 2012 Toray Industries, Inc. All Rights Reserved
19
Worldwide Carbon Fiber Production
Capacity Increase at 4 Production Bases
Released on Mar.9, 2012
（tons）
30,000
26,100
25,000
20,000
27,100
Republic of
Korea
21,100
17,900
Europe
15,000
USA
10,000
5,000
Japan
0
Current


2012 End
2014 End
Mar. 2015
At Ehime Plant, build an integrated production facility of precursor and
high-performance fine carbon fiber, mainly used in aircrafts and luxury
automobiles
At three overseas bases, bolster production facilities for high strength
and standard modulus fiber, which has become the de-facto standard
for industrial and sporting goods applications, to ensure stable supply
to those markets / Establish the first precursor
production line in Europe
Copyright 2012 Toray Industries, Inc. All Rights Reserved
20
Toray Global Network
EACC
ACE
TAK
CFE
TCA
CFA
Toray
Carbon Fiber Production Capacity (Sep. 2012→Mar. 2015)
Toray
Carbon
Fibers
Europe
(CFE)
(France)
5,200
（tons）
Toray
(Japan)
Toray
Advanced
Materials
Korea
(TAK)
(Republic
of Korea)
Toray
Carbon
Fibers
America
(CFA)
(USA)
7,300
→ 9,300
0
→ 4,700
5,400
17,900
→ 7,900 → 27,100
Group
Total
Copyright 2012 Toray Industries, Inc. All Rights Reserved
21
Toray Group Production Bases
Base
Precursor
Carbon Fiber
Raw material for
carbon fiber
Intermediate Material
Prepreg, Fabric, etc.
Composite
Molded products
Toray Ehime Plant
Toray Ishikawa Plant
Japan
Toray Shiga, Nagoya Plant
Sakai Composite
Sowa Textile
USA
France
Toray Carbon Fibers America
Toray Carbon
Fibers Europe
Toray Carbon
Fibers Europe
Toray Carbon
Fibers Europe
Euro Advanced
Carbon Fiber
Composites
Germany
Republic
of Korea
Toray Composites
(America)
ACE Advanced
Composite
Engineering
Toray Advanced
Materials Korea
Copyright 2012 Toray Industries, Inc. All Rights Reserved
22
Business Strategy
Copyright 2012 Toray Industries, Inc. All Rights Reserved
23
Strength of Toray’s Carbon Fiber Composite
Materials Business
Vertically-integrated business model from precursor to
composites materials


Maximize product competitiveness by technological capabilities of
precursor and carbonization
Comprehend market evolution and customer demand
“ Global operation” among 4 production bases to
efficiently enhance business competitiveness


Tight relationship with customers
Strong Business structure, less effected by exchange rate fluctuation
Strong capability of market creation supported by
integrated technological advantages



Technical capability to satisfy advanced technical requirement from
aircraft manufacturers
Development of high quality and competitive intermediate materials
Development of competitive molding process technology
Commitment to market with continuous investment to
R&D and production capacity increase

Investment of capital resource based on long perspective
Copyright 2012 Toray Industries, Inc. All Rights Reserved
24
Basic strategy of Carbon Fiber
Composite Materials Business
Promote business expansion by globally strengthening
production, marketing, technical services and R&D
Maintain and strengthen overwhelming world’s No.1
position in aerospace application and high-performance
industrial and sporting goods applications by high quality
of Torayca carbon fiber.
Expand middle / down stream business by strengthening
R&D forces and establishing supply chain through
proactive alliance in intermediate products such as
prepreg / fabric and in advanced composite processing
field.
Accelerate developing new application / market by
further increasing production capacity of cost competitive
carbon fiber for commodity industrial applications.
Copyright 2012 Toray Industries, Inc. All Rights Reserved
25
Basic strategy of Carbon Fiber
Composite Materials Business
1．Business strategy by application
(1) Maintain and strengthen overwhelming competitive advantages
in aerospace application
(2) Expand business in strategically selected industrial applications
(3) Promote technical development and market exploitation in
automotive industry
(4) Stably expand business in high-performance sporting goods
application
2. Expand advanced composites business
3. Enhance stable supply-ability by continuous
capital investment to increase production
capacity
4. Enhance global R&D forces
5. Develop market in emerging countries
6. Establish carbon fiber recycling system
Copyright 2012 Toray Industries, Inc. All Rights Reserved
26
Strategy of Carbon Fiber Composite Materials Business
Aerospace Application
Maintain and strengthen overwhelming competitive
advantages in aerospace application
Aggressively sign in to programs of two major aircraft
manufacturers and expand supply to them
Boeing



Secure stable supply to increasing build rate of Boeing 787
Secure stable supply to increasing build rate of existing models
such as Boeing 777 and 737
Develop and supply new materials for next generation model
Airbus


Realize supply of prepreg based on Long-term Basic Supply
Agreement concluded May 2010
- Develop and get qualified new high performance prepreg
- Establish production base of prepreg in Europe
(integrated supply chain in Europe)
Secure stable supply to existing models such as A320, A380, A330
Copyright 2012 Toray Industries, Inc. All Rights Reserved
27
Strategy of Carbon Fiber Composite Materials Business
Aerospace Application
Develop new market and new application
Regional & Business Jet


Supply tail wing parts for MRJ
Enter the programs of small-mid size
aircraft in emerging countries
© Embraer
Engine parts

Proceed with development of engine made of CFRP with major
engine manufactures
(CFRP Carbon Fiber Reinforced Plastics)
© JAXA
Maintain overwhelming top share in
space application
Space industry

Continuously expand production capacity of
high-performance grades such as high modulus carbon fiber
Copyright 2012 Toray Industries, Inc. All Rights Reserved
28
History of Aircraft Materials
Early 1900s
1930s
Wright Flyer 1
Ornithopter
(Leonardo da Vinci)
Wood/Canvas
Wood/Steel/Canvas
1980 to 1990s
1st
Boeing 247
aluminum structure
1950s
The present
© Boeing
© Airbus
© Boeing
Boeing 787
“CFRP” Aircraft
Boeing 777, Airbus A320
Comet
1st aluminum jetliner
CFRP Primary structure
(CFRP Carbon Fiber Reinforced Plastics)
29
Copyright 2012 Toray Industries, Inc. All Rights Reserved
Agreement of long-term Supply of Carbon Fiber
Composite Materials for Boeing 787
Concluded
Concluded aa comprehensive
comprehensive agreement
agreement with
with Boeing
Boeing Co.
Co. to
to supply
supply
carbon
carbon fiber
fiber composite
composite materials
materials for
for Boeing
Boeing 787
787 medium-sized
medium-sized
aircraft
aircraft over
over aa long-term
long-term period
period of
of 16
16 years
years (including
(including 55 years
years
available
availableoption).
option).
Toray
Toray supplies
supplies carbon
carbon fiber
fiber Uni-Directional
Uni-Directional Prepreg*
Prepreg* used
used for
for the
the
main
main wing
wing and
and tail
tail wing
wing of
of Boeing
Boeing 787
787 as
as well
well as
as carbon
carbon fiber
fiber cloth
cloth
prepreg
prepregused
usedfor
forthe
thefuselage.
fuselage.
＊１ Uni-Directional Prepreg; Disposition carbon fiber in one direction and combine with epoxy resin to foam sheet
© Boeing
Max.80% of fastener reduction by
one piece molding of carbon
fiber cloth prepreg for fuselage
20 to 30% of weight reduction
for large sized main wing
Copyright 2012 Toray Industries, Inc. All Rights Reserved
30
Advantages of CFRP applied to Aircrafts
Weight Reduction – Improved Fuel Efficiency
High Durability – Maintenance Cost Reduction
High Strength – Higher Cabin Pressure
High Strength – Larger Window
Corrosion Resistant – More Cabin Humidity
Copyright 2012 Toray Industries, Inc. All Rights Reserved
31
CFRP Applications on Boeing 787
Boeing 787
Part
Boeing767
Boeing787
Fuselage
Aluminum
Composite
Main Wing
Aluminum
Composite
Tail Wing
Aluminum
Composite
Flap
Composite
Composite
© Boeing
Boeing 767
Boeing 787
© Boeing
Steel 10%
Composite 3%
Titanium 6%
Steel
10%
Composites
50%
Titanium
15%
Aluminum 77%
Other
5%
Aluminum
20%
CFRP
CFRP (sandwich structure)
GFRP
Aluminum
Other metals
Copyright 2012 Toray Industries, Inc. All Rights Reserved
32
Development of Empennage Material for MRJ
■ Full-scale vertical stabilizer parts for MRJ
(co-development with Mitsubishi Heavy Industries)
Mitsubishi Regional Jet (MRJ)
Spar
5.5m
© Mitsubishi Aircraft
A-VaRTM molding
vacuum
resin injection
Ｖ
Ｖ
oven curing
Stringer / co-bond panel
dry fabric
(Advanced-Vacuum assisted Resin Transfer Molding)
・Low-cost, energy-saving molding technology
・Realization of complex-shapes including multilayer
difference
・Dimension accuracy equivalent to prepreg
・Stable control of Vf (fiber content)
1.5m
Rib
Copyright 2012 Toray Industries, Inc. All Rights Reserved
33
Strategy of Carbon Fiber Composite Materials Business
Industrial Application
Expand business in strategically selected
industrial applications
Establish overwhelming advantages in environment /
energy-related applications requiring high-performance
Pressure Vessel Maintain world No.1 share

Respond to the demand associated with the use of shale gas in US
Enter natural gas programs in emerging countries collaborating with
leading manufacturers of pressure vessels
Develop high-performance carbon fiber for compressed hydrogen gas
tanks installed in fuel-cell vehicles
liner
(aluminum or plastic)
deformation control
burst protection
CFRP reinforced section
high modulus
high strength
Weight of Hydrogen
gas tank


Designed pressure: 160MPa
Working pressure: 70MPa
２０％
lightweight
Toray newly
developed
product
55％
lightweight
Regular
carbon
fiber
Glass fiber
Copyright 2012 Toray Industries, Inc. All Rights Reserved
34
Strategy of Carbon Fiber Composite Materials Business
Industrial Application
Electrical Cable Core
Make Torayca de facto standard


Secure power transmission demand from wind-power / photovoltaic
stations located in remote areas
Approach infrastructure construction projects in China and emerging
countries
・Suspensory control
・Low thermal expansion
coefficients
・High strength
Cable core (aluminum)
・Increase of distance between towers
・Improvement of electric transmission
efficiency
・Increase of electric transmission
capacity
Steel core
Steel core
CFRP core
CFRP core
© CTC
Nuclear Power Generation (Uranium Centrifuge)
Stably supply of high-performance products

Capture uranium enrichment plant programs in Europe and US
Offshore Oilfield Drilling
Pioneer of the development

Promote joint development programs with major oil companies
Copyright 2012 Toray Industries, Inc. All Rights Reserved
35
Strategy of Carbon Fiber Composite Materials Business
Industrial Application
Expand business in strategically selected
industrial application
Strategically expand commodity industrial application
through the establishment of a competitive supply chain
Wind Power Blade
Selectively enter programs, focusing on profitability

Selectively capture programs under the strategy to maximize addedvalue through supply chain
Civil Engineering


Expand sales in overseas market
Expand sales corresponding to the demand increase in infrastructure
construction projects in China and emerging countries
Further strengthen cost competitiveness through local production of
fabric
Plastics Compounds
Expand sales utilizing Group collective strength

Expand sales of compound products by Plastics Division / reserve
added value within Toray Group
Copyright 2012 Toray Industries, Inc. All Rights Reserved
36
Strategy of Carbon Fiber Composite Materials Business
Automotive Application
Proceed technical development and market
exploitation in automotive industry
Realize further adoption in automotive parts
Automotive Outer Panel / Structural parts



Reinforce High-cycle RTM technology (further cycle time reduction)
Develop and promote thermoplastic intermediate materials having
better recycling property
Develop competitive CFRP automotive parts through industrygovernment-academia collaboration
Fuel-Cell Vehicles


Co-develop fuel-cell electrode substrate (carbon paper / GDL)
Develop and promote Toray carbon fiber as de facto standard for
compressed hydrogen gas tanks
(GDL Gas Diffusion Layer)
Proactively promote business alliances



Enhance R&D capabilities, especially automotive parts designing
Secure sales channel and establish robust supply chain
Proactively promote “Molding technology license / Material supply”
business model
Copyright 2012 Toray Industries, Inc. All Rights Reserved
37
Increase in Adoption of
Carbon Fiber for Automobiles
CFRP Effectiveness
Weight reduction (fuel efficiency improvement)
Crash safety improvement
Assembly man-hours reduction through
modularization
1980’s
F1 machine parts
© Mitsubishi Motors
Mitsubishi PAJERO:
Propeller shaft
1990’s
Increase of carbon fiber
automotive parts
Nissan SKYLINE GTGT-R:
Engine hood
2000’s
© Nissan Motor
© Nissan Motor
Nissan SKYLINE:
Radiator core support
LEXUS
2010’s
LEXUS LFA:
Chassis, roof, other parts
Subaru WRX STI tS:
tS:
Roof
©Fuji Heavy Industries
©Daimler AG
MercedesMercedes- Benz
SL AMG:
AMG: Trunk lid
Copyright 2012 Toray Industries, Inc. All Rights Reserved
38
Establishment of a Join Venture with
Daimler AG in Germany
Realized mass production of CFRP automotive parts
utilizing High-cycle RTM technology
1. Company Name : Euro Advanced Carbon Fiber Composites GmbH
2. Location : Esslingen, Germany
3. Investment ratio : Toray 50.1%
Daimler 44.9%
ACE Advanced Composite Engineering 5.0%
4. Establishment : June, 2011
5. Start operation : October, 2012 (scheduled)
© Daimler AG
Mercedes-Benz SL AMG
Esslingen
Esslingen
CFRP Trunk lid
Copyright 2012 Toray Industries, Inc. All Rights Reserved
39
TEEWAVE® AR1
Next-Generation Concept EV
TEEWAVE ® AR1 is the flagship vehicle that embodies Toray Group’s green
innovation strategy in the automotive field, offering concepts tailored for the
automotive industry, the users and the environment.
Monocoque (CFRP)
High-cycle RTM (10 minutes)
Integral molding (number of parts: three)
Roof and hatch (thermoplastic CFRP)
PP resin: stamping molding (1 minute)
Seat (CFRP, ULTRASUEDE ® )
Ultralight, highly designable
(artificial suede)
Steering wheel (decorative film)
Easy molding, highly designable,
no painting required
Item
TEEWAVE ® AR1
(two-seater open car)
Body size (mm)
3,977 x 1,766 x 1,154
Weight (kg)
846
(of which the weight of battery)
(220)
Number of passengers
2
Maximum power (kW/rpm)
47/3,000 to 6,000
Maximum torque (Nm/rpm)
180/0 to 2,000
Electricity consumption rate
(km/kWh)
11.6
Range (Japan 10-15 mode
cycle, km)
185
Maximum speed (km/h)
147
Acceleration 0-100km /h (sec)
11.0
Optional Mats (PLA)
Bio
Energy absorber (CFRP)
Dashboard (TORAY PEF ®, CFRP)
Absorbability: three times that of steel
Light weight, highly designable, bio
Instrument cluster ( Picasus
®
)
Metallic luster
Toray used Gordon Murray Design Ltd. of the
U.K. (CEO: Gordon Murray, former F1
designer) for the vehicle’s body and
structural design as well as manufacture
Copyright 2012 Toray Industries, Inc. All Rights Reserved
40
Forecast of World’s Automobile Production
and Carbon Fiber Market
Supercar
5,000 units
Super-luxury
model
500,000 units
Luxury model
5 million units
Thermosetting
plastics CFRP
Mass production car
Approx. 95 million units
World’s production around 2020:
Approx. 100 million units
Carbon Fiber Demand
Thermoplastics
CFRP
Thermoplastics
CFRP
UD tape
Stampable Sheet
2010
Thermosetting
plastics CFRP
2015
2020
Copyright 2012 Toray Industries, Inc. All Rights Reserved
41
Market Forecast of Fuel-Cell Vehicles
 Toward “first year on the market of fuel-cell vehicles” in 2015, automobile manufacturers worldwide
are accelerating their development of Fuel-Cell Vehicles.
 National governments have announced support for infrastructure construction toward the spread of
Fuel-Cell Vehicles. For example, the Japanese government has decided to support the private
sector with such plans as to install 100 hydrogen gas stations mainly in the 4 metropolitan areas by
2015 in association with the revision in the High Pressure Gas Control Act and the Fire Service Act.
cell
Forecast of Fuel-Cell Vehicle Production
air
400
(thousand units)
hydrogen
GDL
separator
anode (catalyst)
Gas Diffusion Layer
electrolyte membrane
cathodes (catalyst)
Fuel-cell
stack
300
200
separator
100
Highpressure
hydrogen
gas tank
© Toyota Motor
0
2015
(Source : Pike Research)
2016
2017
2018
2019
2020
Copyright 2012 Toray Industries, Inc. All Rights Reserved
42
Strategy of Carbon Fiber Composite Materials Business
Sporting Goods Application
Maintain overwhelming competitive advantages in the
market required high-performance through continuous
development of new products
Further expand sales to bicycle application which has
become the mainstay of sporting goods application
Proceed the co-design and co-development with
leading brand name manufacturers of golf shaft and
fishing rods
Expand sales to new applications such as hockey sticks
and softball bats
Strengthen cost competitiveness of commodity products
Establish competitive supply chain through collaboration
with leading intermediate material manufacturers
Copyright 2012 Toray Industries, Inc. All Rights Reserved
43
Sales Expansion in Sporting Goods
Application with Branding Strategy
Appeal “high-performance and high-value added” advantage to
end-consumers through combination of product brand and
technology brand
Product brand
Technology brand
×
A specific technology that realizes alloy
structure of a number of polymers on a
nanometer order. Toray holds the basic
patent as well as major patent for
production and application.
This is a technology that offers highperformance and high-functional
properties to polymer materials which
could not have been realized with general
micron order alloy.
Balance between
© PINARELLO
Rigidity and Flexibility
Copyright 2012 Toray Industries, Inc. All Rights Reserved
44
Target and Role of
Advanced Composites Business
Market Creation
Development of
composite products
business
Development of carbon fiber
/ intermediate material
market
IT-related devices
Automobile / Aircraft parts
- PC housing
- Smartphone housing
Medical devices
- CT cradle, etc.
- X-ray cassette
Toray composite products
business
Capital participation
Technology Licensing
Development of innovative materials and molding
technologies complying with market requirements
Copyright 2012 Toray Industries, Inc. All Rights Reserved
45
Expansion of
Advanced Composites Business
Develop and market composite products through the
combination between quality competitiveness of carbon
fibers / intermediate materials and outstanding molding
technology
Hybrid molding
IT device housing
High-cycle RTM
Automotive outer panel / structural parts
A-VaRTM
Complex-shaped aircraft structural parts
Lightweight
CFRTP(*1) or GFRTP（*2）
outsert injection molding
*1 CFRTP Carbon Fiber Reinforced Thermoplastics
*2 GFRTP Glass Fiber Reinforced Thermoplastics
Modulus（GPa）
CFRP molded panel
Hybrid CFRP
80
Al alloy
60
Mg alloy
40
20
0
High rigidity
Hybrid molding
100
0
1
Conventional
CFRTP injection
Conventional
GFRTP injection
2
3
Specific gravity
4
Copyright 2012 Toray Industries, Inc. All Rights Reserved
46
Expansion of
Advanced Composites Business
Establish competitive production supply chain in low cost
countries
Respond to the relocation of IT / medical devices
production base to China and Southeast Asia
TAK
TARC
TORAY
© SONY
Expand
production bases
(subcontractors)
EACC
ACE
TORAY
A&A Center
© Toshiba Medical Systems
Collaborate with
end-customers
Establish integrated supply chain just in front of
the market
Collaborate with end-customers including parts designing
Copyright 2012 Toray Industries, Inc. All Rights Reserved
47
Toray’s Global Management Principle
•
•
•
Conduct cutting-edge research and development and develop advanced
materials and innovative processes at mother factories in Japan
Leverage global production sites (in and outside Japan) to maximize business
expansion and manufacture in optimal locations
Reinvest profits in further research and development (in Japan: advanced
materials / outside Japan: development of product applications)
⇒ Sustainable growth
Further bolster business expansion
and cost competitiveness
Mother factories in Japan
Development of advanced materials
Creation of high value-added products
Development of innovative processes
Base sites outside Japan
Development of product applications to meet
local needs
Localize production to
manufacture products close to
source of demand and enhance
cost competitiveness
Reinvestment in
research and
development
Thorough cost reductions
Copyright 2012 Toray Industries, Inc. All Rights Reserved
48
Expand Supply Capacity
by Continuing Capital Investment
Increase capacity at world four production
bases toward 2015
Expand capacity of high-performance carbon fiber
(Production start-up in 2015)
Expand production of high value added products as the global
mother factory
Expand capacity of standard grade carbon fiber for industrial
applications （Production start-up in 2014)
Respond to expanding demand of environment and energyrelated applications in USA
Install first precursor production line in France
(Production start-up in 2014)
Establish integrated structure of production from precursor to
carbon fiber
Install production facility of standard grade carbon fiber for
industrial applications (2 lines) (Production start-up in 2013 and 2015)
Establish production site having cost competitiveness
Copyright 2012 Toray Industries, Inc. All Rights Reserved
49
Grade Line-up by Production Base
TORAY
Line-up
Major Application
High modulus
fiber
Satellite, Rocket
High-end sporting goods
◎
Intermediate
modulus fiber
Aircraft primary structure
High-end sporting goods
◎
Aircraft secondary structure
Standard
Luxury car
modulus fiber
(fine fiber)
Fuel cell parts
General industry
Standard
Sporting goods
modulus fiber
CFA
TAK
○
◎
◎
◎
CFE
○
○
◎
○→◎
○
◎ Integrated production of precursor line and carbonization line
○ Carbonization line only
Copyright 2012 Toray Industries, Inc. All Rights Reserved
50
Future Expansion Plan
For Boeing’s
new program
Ishikawa Plant
Prepreg
Prepreg
for
Airbus
Standard
grade
carbon fiber
for industrial
applications
Ehime Plant
High-performance
fine fiber
Carbon Fiber Production Capacity
50
Standard
grade
carbon fiber
for industrial
application
60
(Ktons)
Prepreg Production Capacity
(million ㎡)
50
40
40
30
30
TAK
20
CFA
10
CFE
TCA
20
10
Toray
Toray
0
0
2011
2015
2017
2020
2011
2015
2017
2020
Copyright 2012 Toray Industries, Inc. All Rights Reserved
51
R&D Strategy
Strength of Toray advanced
composite materials technology
・Overwhelming development
capabilities of carbon fibers and resins
・Integrated process engineering
capability from polymers to composite
products
・Global integration of R&D forces
Toray’s
Strength
Material
Design
(close collaboration with Boeing, Airbus,
Daimler, etc.)
R&D basic strategies
・Pursuit of ultimate performance of
carbon fiber
・Improvement of performance of
composite resins
・Development of innovative molding
technology and proposal of solution
・Further reinforcement of Global R&D
Feedback to
materials
and processes
Product
Design
Process
Design
Carbon fiber
surface design
Molecular
design
A
Carbon fiber/resin
matrix control
Carbon fiber
tow design
nm
Strong
unique
technology
mm
Most suitable multilayer structure
mm
m
Resin
CF Surface
Copyright 2012 Toray Industries, Inc. All Rights Reserved
52
Development of High Performance
Carbon Fibers
Strength improvement of
carbon fibers
Strength
Target Area
T800
T700
Tensile strength (GPa)
 Achievement of compatibility
between high strength and high
modulus through innovative
technology, which was not able to
be realized with conventional
technologies, by i) defect control,
ii) improvement of fracture
toughness, and iii) optimization of
interface
10
8
6
4
2
Hail resistance
(Impact resistance)
Lightning
resistance
(conductivity)
Silence
Tension
Compression
Fiber defect control in nano-scale
Nano size surface image （ＡＦＭ）
Defect size
Nano
Submicron
micron
0
1970 1980 1990 2000 2010
MJ
series
T300 Existing products
Modulus
Copyright 2012 Toray Industries, Inc. All Rights Reserved
53
Technology Development for
improvement of composite performance
Respond to market needs for high performance
Nano-scale
separation structure
Functional particles
 Improvement of
damping characteristics
Dumping control
particle
・Vibration absorption for bike
・Improvement on impact
feeling of golf shaft
Absorption of
vibration energy
 Improvement of conductivity
・Improvement of lightning
resistance
Toughening
particle
Conductive
particle
High conductivity and
impact resistance
Target Area
Sporting
Goods
Aircraft
Resin modulus (rigidity)
Vibration control
Functional material
Electric conductivity
・Compatibility between
toughness and rigidity
・Extension of applications
Resin tenacity
（toughness）
Matrix resin
NANOALLOY® resin
© DUNLOP SPORTS
Target Area
Modulus
© PINARELLO
Target Area
© Airbus
Conventional resins
Impact resistance
Copyright 2012 Toray Industries, Inc. All Rights Reserved
54
Deepening of composite molding
technology
 High cycle molding technology with
thermoset plastics
 Realization of high modulus with
thermoplastics
 Technology verification by concept
car TEEWAVE®AR1
Key performances of TEEWAVE®AR1
(comparison with the steel body)
Vehicle weight: 846kg (about 40% decrease)
Mileage (1 charge): 185km (about 30% improvement)
Number of structural parts: 231 (about 40% decrease)
50
Elastic modulus （GPa）
Realize compatibility
between high productivity
and high performance
High cycle RTM (10 minutes)
Area to
aim at
40
Autoclave
[Prepreg]
Prepreg]
Higher
Speed
RTM ※1
[Fabric]
Fabric]
Continuous fiber
(CFRP)
30
Higher
modulus
20
<CFRP (thermoset)>
Monocoque frame,
Crash box, etc.
※1 ＲＴＭ：Resin Transfer Molding
※2 ＳＭＣ：Sheet Molding Compound
10
Press molding
etc] ※2
Injection ［SMC, etc]
molding
[pellet]
pellet]
Discontinuous
fiber
2
4
Thermoset
Plastics
Thermoplastics
6
8
180
Molding cycle (minute)
<CFRTP (thermoplastics)>
Roof, Hatch, etc.
PP resin, Stamping molding (1 minute)
Copyright 2012 Toray Industries, Inc. All Rights Reserved
55
Global R&D Enhancement
Enhance world five R&D bases
Mother R&D base of Toray group
(Technical Dept., Research Lab., A&A Center and E&E Center)
Product development and technical service base for North
American market
(TCA Technical Center & Research Lab. / CFA Technical Center)
Product development and technical service base for European
market
(Pan European Technical Center / ACE Advanced Composite Engineering)
Technical service base for Korean industrial markets
(TAK Advanced Composite Materials Technical Center)
Composite product development and technical service base for
Chinese market
(TARC ： Toray Advanced Materials Research Laboratories (China) Co., Ltd.)
Strengthen R&D forces for automotive
application
Enhance parts designing technology through alliance
including M&A
Accelerate development by further enhancement of pilot
plants
Copyright 2012 Toray Industries, Inc. All Rights Reserved
56
Global R&D Network
Design and
development of
CFRP automotive parts
Development of
industrial applications for
Korean domestic market
ACE
CFE
TCA
TAK
TARC
Development of
industrial applications
in Europe
Development of
composite products for
Chinese domestic market
R&D of prepreg and
resin system for
aircraft application
TORAY
CFA
Cultivation of US industrial
market and development
carbon fibers suitable for
industrial applications
Mother R&D base of Toray group
- Development of basic technologies
- Development of advanced materials
and value-added products
- Development of advanced composite
technologies
Copyright 2012 Toray Industries, Inc. All Rights Reserved
57
R&D bases in Japan
(A&A Center & E&E Center)
A&A Center
(Automotive & Aircraft Center)
E&E Center
(Environment & Energy Center)
Plastics Application
Technology
Engineering Center
(1989)
Environment
Environment &
& Energy
Energy Development
Development Center
Center
Two Wings Driving Green Innovation
A&A
Center
Automotive Center
(June, 2008)
Automotive
& Aircraft
Advanced Composite Center
(April, 2009)
E&E
Center
Common
fields
- structural
Li battery
materials
Fuel Cell
- Panel / Interior
- Car electronics
Wind power
Environment
& Energy
Photovoltaic
Biomass
materials
Copyright 2012 Toray Industries, Inc. All Rights Reserved
58
Approach to Carbon Fiber Recycling
Establish carbon fiber recycling system
Develop basic recycling technologies
Subsidiary project of Ministry of Economy, Trade and Industry
（2006∼2008）
“Verification research of carbon fiber recycling technology”

Establish basic technology to produce recycled fiber
(chopped fiber and milled fiber)
Issues to establish recycling system
Develop mass production technology
(scrap materials separation and cost reduction)
Cultivate recycled product markets /
applications
Chopped fiber
Milled fiber
Recycling pilot plant
(Omuta City, Fukuoka)
Copyright 2012 Toray Industries, Inc. All Rights Reserved
59
Business Plan
Copyright 2012 Toray Industries, Inc. All Rights Reserved
60
Business strategies (summary)
Europe
Establish integrated supply
structure from precursor,
carbon fiber to prepreg
-Establish in-house supply
chain to Airbus programs
-Strengthen business
competitiveness in Europe
Japan/Asia
Americas
Strengthen R&D forces of
fundamental technologies
and advanced materials,
and expand production
capacities of value-added
products as the mother
factory of Group
Expand Pan European
Technical Center
Create domestic market of
automotive application by
industry, government, and
academia collaboration
Reinforce R&D facility for
automotive application
(ACE and Branch Lab. of
Pan Europe Technical
Center )
Expand as core production
base of standard grade
carbon fiber for industrial
and sporting goods
applications
Strengthen integrated
supply structure for Boeing
programs
Enhance supply structure
for environment and
energy-related
applications
Develop supply chain of
intermediate materials and
composite products for
automotive application
Establish supply chain of
intermediate materials and
composite products
Central & Eastern Europe,
Russia and MENA market
development
India and ASEAN market
development
Latin American market
development
Copyright 2012 Toray Industries, Inc. All Rights Reserved
61
Future Business Scale (Vision)
Net sales by product type
Unit: Billion ¥
350
300
Net Sales by application
Unit: Billion ¥
350
Industrial
Composites
Intermediate Materials
300
Carbon Fiber
Aerospace
250
250
200
200
150
150
100
100
50
50
0
0
2011
2013
Sporting Goods
2015
2020
2011
2013
2015
2020
Copyright 2012 Toray Industries, Inc. All Rights Reserved
62
Descriptions of predicted business results,
projections and business plans contained in
this material are based on assumptions and
forecasts regarding the future business
environment, made at the present time.
The material in this presentation is not a
guarantee of the Company’s future
business performance.
Copyright 2012 Toray Industries, Inc. All Rights Reserved
63
End of presentation
Unapproved diversion of any picture and
photograph in this material should withhold.
Copyright 2012 Toray Industries, Inc. All Rights Reserved
64