Toray to strengthen cooperation with Korean companies

Japanese separation membrane company Toray has put its Korean core production corporation under the umbrella of its Korean subsidiary. The latest move is seen as a means to strengthen cooperation with domestic battery companies.

Toray's subsidiary, Toray Advanced Materials, announced Thursday that it would acquire a 70% stake in Toray Battery Separator Film Korea (Toray BSF Korea), a core production corporation of Toray. Previously, Toray held a 100% stake in Toray BSF Korea. Once the acquisition agreement is finalized, the remaining 30% will be maintained as Toray headquarters stake.

Toray Advanced Materials is a chemical materials specialized company based in Magok-dong, Gangseo-gu, Seoul. It also produces advanced materials related to mobility, such as variant films for EV multilayer ceramic capacitors (MLCC). "We expect an increase in demand for premium separators in the rapidly growing global electric vehicle market," Toray Advanced Materials said, "We plan to lead the separator market and actively respond to the demands of domestic and international customers."

Through this restructuring of governance structure, Toray aims to enhance its business capabilities in Korea and contribute to strengthening the domestic battery supply chain. As part of this plan, the management system of Toray BSF Korea will also be transitioned to be more Korea-centric. Jeon Hae-sang, CEO of Toray Advanced Materials, will also lead Toray BSF Korea.

Separation membranes are one of the four core materials of batteries, along with cathode, anode materials, and electrolytes. According to industry sources, the value-added proportion of separation membranes in battery production ranges from 10% to 20%. According to market research firm SNE Research, Korea accounted for 23%, Japan accounted for 19% of the global separation membrane market in terms of supply volume last year, and China took up 56%. The ongoing global restructuring of the electric vehicle and battery supply chain, including the full implementation of the U.S. Inflation Reduction Act (IRA), underscores the importance of cooperation between Korean and Japanese companies.


beepark@donga.com