U.S. yarn maker opens China plant
[2008-12-23 17:04:27]
U.S. yarn maker opens China plant
Source :
Automotive News
[Posted on Dec 8,2008 at 9:49]
SHANGHAI ??nbsp;Seeking a larger foothold in Asia, fiber manufacturer Invista, of Wichita, Kan., has begun producing nylon yarn for airbags at a plant in China.
Invista’s share of the global airbag yarn market is a "little bit less than 50 percent," says Mark Delaplane, global director of Invista’s nylon industrial specialties, performance surfaces and materials.
The yarn ??nbsp;called nylon 6,6 ??nbsp;is an essential ingredient in airbags and seat belts.
First plant in Asia
A production plant in China puts Invista closer to Asian growth markets. The new Invista Specialty Fibers (Shanghai) Co. factory, in Shanghai’s Qingpu district, is Invista’s first nylon 6,6 production plant in Asia.
No longer will customers have to wait for yarn to travel from Invista’s plant in Kingston, Ontario, to China. The yarn will be cheaper, mainly because of low shipping costs, says Dan Stone, president of Invista’s performance materials.
Invista’s project manager, Phil Webster, was brought in to oversee construction of the plant, having had a similar role at Invista’s two other airbag yarn plants in Gloucester, England, and Kingston.
Tough competition
Competition in the airbag yarn market is fierce. Last year, German supplier Polyamide High Performance GmbH and joint venture partner China Shenma Group began production at a plant in China. Japanese fiber maker Toray Industries Corp. and Korean fiber maker Hyosung Corp. also are players in the market.
The suppliers sell yarn to safety system makers such as TRW, Autoliv, Takata and Hyundai Mobis.
A typical car in North America uses 4.4 pounds of airbag yarn.
Local production expected
Invista imports the polymer resin used to make the yarn. But that is likely to change, further benefiting customers in Asia.
"We have a vision for doing that probably in the next couple of years," says Stone, referring to local production of polymer resins in China.
Despite the slowdown in auto sales, Thomas Xu, of TRW Systems Consulting Services (Shanghai) Co., still expects a 50 percent jump in TRW’s airbag business in 2009 because more automakers in China are beginning to use side curtain airbags.
Winning back business
To maintain its market share, Invista needs to win business from competitors. This includes winning new business back in the United States from the Detroit 3, plus Japanese and Korean automakers.
Initially, the Qingpu plant will export 70 percent of production, mainly to Korea for airbag maker Kolon Industries Inc.
Nylon 6,6 yarn is also used in the production of tires. "In the current climate, it’s always good for a plant to be flexible," says Invista’s Webster. "Tire fiber is a potential opportunity."
Invista’s share of the global airbag yarn market is a "little bit less than 50 percent," says Mark Delaplane, global director of Invista’s nylon industrial specialties, performance surfaces and materials.
The yarn ??nbsp;called nylon 6,6 ??nbsp;is an essential ingredient in airbags and seat belts.
First plant in Asia
A production plant in China puts Invista closer to Asian growth markets. The new Invista Specialty Fibers (Shanghai) Co. factory, in Shanghai’s Qingpu district, is Invista’s first nylon 6,6 production plant in Asia.
No longer will customers have to wait for yarn to travel from Invista’s plant in Kingston, Ontario, to China. The yarn will be cheaper, mainly because of low shipping costs, says Dan Stone, president of Invista’s performance materials.
Invista’s project manager, Phil Webster, was brought in to oversee construction of the plant, having had a similar role at Invista’s two other airbag yarn plants in Gloucester, England, and Kingston.
Tough competition
Competition in the airbag yarn market is fierce. Last year, German supplier Polyamide High Performance GmbH and joint venture partner China Shenma Group began production at a plant in China. Japanese fiber maker Toray Industries Corp. and Korean fiber maker Hyosung Corp. also are players in the market.
The suppliers sell yarn to safety system makers such as TRW, Autoliv, Takata and Hyundai Mobis.
A typical car in North America uses 4.4 pounds of airbag yarn.
Local production expected
Invista imports the polymer resin used to make the yarn. But that is likely to change, further benefiting customers in Asia.
"We have a vision for doing that probably in the next couple of years," says Stone, referring to local production of polymer resins in China.
Despite the slowdown in auto sales, Thomas Xu, of TRW Systems Consulting Services (Shanghai) Co., still expects a 50 percent jump in TRW’s airbag business in 2009 because more automakers in China are beginning to use side curtain airbags.
Winning back business
To maintain its market share, Invista needs to win business from competitors. This includes winning new business back in the United States from the Detroit 3, plus Japanese and Korean automakers.
Initially, the Qingpu plant will export 70 percent of production, mainly to Korea for airbag maker Kolon Industries Inc.
Nylon 6,6 yarn is also used in the production of tires. "In the current climate, it’s always good for a plant to be flexible," says Invista’s Webster. "Tire fiber is a potential opportunity."
Source: 中华汽配网
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