Toyobo to form JV firms to manufacture packaging film in Indonesia
Japanese firm Toyobo has entered an agreement to set up two joint venture (JV) firms with PT Trias Sentosa (Trias), an Indonesia-based flexible packaging film maker.
Under the terms of the agreement, JV firms will manufacture and sell Toyobo’s Ecosyar, a transparent vapour-deposited film, and polyester films for packaging in the country.
One of the JVs, PT Toyobo Trias Ecosyar (TTE) will produce Ecosyar while the other JV, PT Trias Toyobo Astria (TTA) will produce polyester films for packaging.
Both companies are expected to start operations from the later half of 2019.
The agreement is expected to facilitate the production and sale of Ecosyar in the overseas market amidst the increasing demand for barrier films.
Trias has the necessary operational infrastructure that will enable Toyobo to realise its business objective.
As part of the agreement, TTE will use Trias’ production infrastructure to manufacture Ecosyar.
The deal also entitles Trias to sell Ecosyar in Indonesia, while Toyobo reserves the right to market the product worldwide.
TTA will focus on manufacturing polyester films for packaging, as well as supplying original polyester films to TTE for producing Ecosyar.
A high-performance barrier film, Ecosyar is made by depositing two kinds of vapoured ceramics, silica and alumina, after which it is coated with a nylon or polyester film.
The material has a gas barrier performance about 100 times higher than conventional packaging films and can be used for packing multiple food and non-food products.
Toyobo also claims that Ecosyar contains no chlorine compounds and makes packaging films very thin, reducing waste.