Toyobo to set up joint venture firms in Indonesia to produce packaging film

Toyobo Co., Ltd. has agreed to set up two joint venture firms with PT. Trias Sentosa, Tbk (Trias), an Indonesian flexible packaging film maker, to manufacture and sell Toyobo’s ECOSYAR_®, a transparent vapor-deposited film, and polyester films for packaging in Indonesia. Toyobo and Trias held a signing ceremony on August 3.
Toyobo plans to accelerate the production and sale of transparent vapor-deposited film overseas in cooperation with Trias, which is one of the largest film makers in Southeast Asia.

1. Background

The Japanese market for barrier films for food packaging is expanding against the backdrop of increased awareness about food safety and heightened demand for extending expiration dates. Rising global eco-consciousness as well as food shortages hitting many parts of the world have also boosted sales of barrier films worldwide. In particular, the global market of transparent vapor-deposited film is projected to increase by 10 percent per annum.
Toyobo has manufactured and sold ECOSYAR_®, a high-performance barrier film, mainly in the domestic market. With the global barrier films market projected to grow, Toyobo has been studying ways to market this product overseas.

2. How the agreement with Trias was reached

Toyobo considered a business model best-suited to manufacture and sell ECOSYAR_®, while searching for a prime partner to realize the business model. As a result, Toyobo has reached an accord with Trias, its long-time business partner that has operational infrastructure Toyobo requires, to set up two joint venture firms in Indonesia.

The two companies to be established are:

1) PT. TOYOBO TRIAS ECOSYAR (provisional name, TTE)

Business operations	:	Production of transparent vapor-deposited film ECOSYAR®
Stakes	:	Toyobo 60%; Trias 40%
Location	:	Trias site
Start of operations	:	Scheduled for November 2019

2) PT. TRIAS TOYOBO ASTRIA (provisional name, TTA)

Business operations	:	Production of polyester films for packaging
Stakes	:	Trias 60%; Toyobo 40%
Location	:	Trias site
Start of operations	:	Scheduled for October 2019

3. Future strategies

TTE will use Trias’ production infrastructure to manufacture ECOSYAR_®, while Toyobo will sell the product in Japan and the rest of the world. Trias will sell ECOSYAR_® in Indonesia.
TTA will manufacture polyester films for packaging, while providing TTE with original polyester films for ECOSYAR_®. Furthermore, the company will supply these products to Toyobo and Trias.

4. Transparent vapor-deposited film ECOSYAR_®

1)	High gas barrier performance and moistureproof without being affected by relative humidity The product can be used for a wide range of food and nonfood products.
2)	Flexible, yet with high barrier performance The use of two kinds of ceramics makes it flexible while maintaining high barrier performance.
3)	Eco-friendly, colorless and transparent It is eco-friendly as it contains no chlorine compounds and can make packaging films very thin, helping to reduce garbage.

5. Details of Trias

Name	:	PT. Trias Sentosa, Tbk
President Director	:	Sugeng Kurniawan
Location	:	Indonesia
Established	:	November 1979
Business operations	:	Production and sale of polyester films, vapor-deposited aluminum films, etc.

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