Toray to Invest 500 Billion Won in Gumi to Expand Production of Semiconductor and Electric Vehicle Materials

Industry Ministry, Gyeongsangbuk-do, and Gumi City Sign Investment Cooperation MOU

Toray Group will invest 500 billion KRW from this year until 2025 to establish advanced material production facilities in the Gumi National Industrial Complex, Gyeongbuk. Through this investment, the company plans to expand its eco-friendly advanced materials business in semiconductors, electric vehicle batteries, aerospace, and defense sectors, while strengthening cooperative relationships with domestic companies such as Hyundai Motor.

On the 22nd, Toray and Toray Advanced Materials announced that they signed a Memorandum of Understanding (MOU) on investment in advanced materials such as carbon fiber, aramid fiber, films for information and communication (IT) materials, and secondary battery separators at the Conrad Hotel in Yeongdeungpo-gu, Seoul, together with the Ministry of Trade, Industry and Energy, Gyeongsangbuk-do Province, and Gumi City. This comes one month after Toray confirmed its investment in aramid fiber manufacturing facilities and submitted an investment report during Minister An Deok-geun’s visit to Japan.

Since last year, Toray Advanced Materials has been expanding its third carbon fiber production line with an annual capacity of 3,300 tons at Gumi Plant 4, aiming for operation in the second half of 2025. Upon completion, Gumi Plant 4 will secure a total annual production capacity of 8,000 tons.

At Gumi Plant 1, a second production line using the dry spinning method for aramid fiber with an annual capacity of 3,000 tons will be added. Aramid fiber is known as a super fiber because it is five times stronger than steel and can withstand temperatures up to 500 degrees Celsius. It has excellent heat resistance, tensile strength, and electrical insulation properties. Demand for aramid fiber is increasing across various industries, including electric vehicle drive motors, heat-resistant protective clothing, and ultra-high voltage transformers. Toray Advanced Materials plans to secure a total annual capacity of 5,000 tons to enhance cost and quality competitiveness and expand its global market share.

Memorandum of Understanding Signing Ceremony for Toray Group's Investment in Gumi National Industrial Complex. From the left: Gu Ja-geun, Member of the National Assembly; Kim Young-sik, Member of the National Assembly; Kim Jang-ho, Mayor of Gumi; Lee Cheol-woo, Governor of Gyeongbuk Province; Ahn Deok-geun, Minister of Trade, Industry and Energy; Oya Mitsuo, President and CEO of Toray; Lee Young-kwan, Chairman of Toray Advanced Materials; Kim Young-seop, CEO of Toray Advanced Materials.
[Photo by Toray Group]

The Ministry of Trade, Industry and Energy, Gyeongsangbuk-do Province, and Gumi City will provide the necessary financial and administrative support to implement this investment plan.

In his opening remarks, Minister An Deok-geun said, "Securing a domestic production base for core materials used in future new industries such as electric vehicles, batteries, hydrogen, and displays will contribute to strengthening the supply chain. The fact that Toray plans to use Korea as an Asian export hub makes this investment highly significant."

Kim Young-seop, CEO of Toray Advanced Materials, stated, "We will continuously expand our advanced materials business focusing on eco-friendly and high-performance products to respond to the rapidly changing materials industry and create new added value. We will also strive to ensure that this investment leads to job creation as well as the development of the local economy and related industries."

Toray, the world’s number one in carbon fiber, is a global company supplying high value-added materials in various advanced fields such as carbon fiber composites, electronic information materials, medical and healthcare, water treatment and environment, and resin chemicals. Since entering Korea in 1963, it has invested over 5 trillion KRW over 60 years and contributed to creating more than 4,000 jobs. Toray operates six companies in Korea, including Toray Advanced Materials and Stemco.

About 20 key figures attended the signing ceremony, including Minister An Deok-geun, Gyeongbuk Governor Lee Cheol-woo, Gumi Mayor Kim Jang-ho, National Assembly members Koo Ja-geun and Kim Young-sik, Toray CEO Mitsuo Oya, Toray Advanced Materials Chairman Lee Young-kwan, and CEO Kim Young-seop.