Toray Saehan Strives to Be Global
Chemical and IT Materials Co.
Toray joins Toray Saehan's plan to invest
$400 million in building its third plant in Gumi

Toray of Japan and Toray Saehan have joined forces to build the latter's third plant capable of producing advanced IT materials that will be dedicated by 2009 with an investment of $400 million.
The groundbreaking ceremony for Toray Saehan? third factory in Gumi was held on July 10 with about 300 people, including Toray CEO-President Sadayuki Sakakibara, participating.
Toray and its Korean joint venture with Korea Saehan, Toray Saehan will invest $400 million in completing the plant on a lot covering 58,000 pyeong (191,400 sq. meters). Toray will put up $100 million out of the total $400 million, while Toray Saehan will invest $300 million in the form of paid-in capital increase and reinvestment of profits. If and when completed as schedule, the plant will produce such advanced IT materials as PDP front filter films. The dedication of the plant is projected to bring about such economic benefits as production spill-over effects worth 667.1 billion won per annum, creating 3,790 jobs and some 150 billion won in added value, industrial experts said.
Toray President Sakakibara said the planned plant is expected to greatly contribute to advancing the localization of advanced IT materials. The president said that he was pleased to make good on a promise he made during his meeting with President Roh Moo-hyun in February last year that Toray would invest $400 million in Gumi Industrial Complex, adding that Toray will aggressively make more investments into advanced materials with a potential of added value.
Toray Saehan aims to post 58 billion won and 380 billion won in 2006 and 2008, respectively, in annual sales from the electric materials sector, raising the sector? portion from the current 7 percent to 40 percent. The company is striving to transform itself into a chemical and IT materials company with sales projected to grow to 1 trillion won in 2009.
Lee Young-kwan, president of Toray Saehan Inc., said, "Polymerization and film production and coating technology Toray Saehan has accumulated for the past 20 years have served as the groundwork for the development of the IT industry, and a combination between Toray's advanced technology and Toray Saehan's component technology will have a synergetic effect of transforming Toray Saehan into an advanced IT materials company."Since its establishment of Toray Saehan as a joint venture between Japan's Toray Inc. and Korea Saehan Inc. in 1999, the company has attached management priority on building a quality control infrastructure, based on a consensus that it is aimed at raising the competitiveness of its core business areas -polyester base film, IT materials, resins and chemical fiber products - and expanding to new growth sectors.
In a related development, Katsunoske Maeda, chairman of Toray, became the first foreigner to receive the Merit of Industrial Order, the Gold Tower, from the Korean government in recognition for his investments into Korea.
In his speech during a ceremony for presenting the merit award held on June 10 at the Seoul Shilla Hotel, Minister of Commerce, Industry and Energy Lee Hee-beom lauded Maeda's investment into Korea, saying that he had worked together with Korea particularly when the latter was experiencing difficult times. Maeda decided to expand Toray's presence into Korea in 1998 when Korea was staggering with the Asian financial crisis.
Minister Lee said Maeda became the first foreigner to be awarded with the Merit of Industrial Order, the Gold Tower, even though foreign direct investments into Korea have surged the $100 billion mark. He expressed the hope that the two countries would continue to boost cooperative economic ties, saying that a continuous inflow of FDIs is essential.
Maeda said in his speech that he began to promote economic ties between Korea and Japan 42 years ago. Toray has invested into six countries and has combined 4,500 employees with annual sales worth 2.3 trillion won.
The success story of Toray Saehan is the outcome of his efforts to pursue industrial promotion and boost exports rather than to focus on profit taking in a short-term perspective, he said. He noted that he made efforts to help Toray Saehan make public management information in a bid to build up trust with its labor union.
Takano Toshuke, Japanese Amb. to Korea, said in his speech that Toray's investments have contributed to fostering the chemical, electronics and materials industries. Location, a boost in exports, joint ventures, technology sharing and common financing has contributed to improving economic ties between the two countries.
He said he sees prospects of forming an economic community in Northeast Asia in the economic, social and cultural aspects, saying that the two countries are now in talks to conclude a Free Trade Agreement.
Lee Eui-keun, governor of North Gyeongsang Province, said he extended a thank-you to Maeda in recognition of promoting industrial development and friendly ties on behalf of his 3 million provincial residents.
Among the participants of the award-presenting ceremony were Reps. Lee Sang-deuk, Kim Sung-jo and Toray CEO-President Sadayuki Sakakibara. nw

Lee Young-kwan, president of Toray Saehan Inc.