Although the situation thereafter improved somewhat, winter storm Uri, which hit North America in February 2021, caused significant global shortages again and hampered economic activity, leading raw material prices soaring. Such a situation caused dramatic rises in nylon 66 prices. On top of that, prices of such secondary raw materials as silicone for coating airbag fabrics have rocketed amid supply shortages. Rising fuel, electricity, and logistics costs are compounding challenges in the airbag business.
Toray accordingly embarked on a project to bolster its total cost competitiveness by slashing expenses and streamlining fixed and variable spending. Higher costs of primary and secondary materials and transportation outstripped savings initiatives, however, forcing the company to raise its prices to maintain consistent quality and develop and commercialise products that deliver even higher value, the company said in a press release.
Fibre2Fashion News Desk (GK)