Toray buys out 'ultrasuede' business

Toray Industries, Inc. has acquired the human-made suede business of Spring Industries, Inc., a leading U.S. manufacturer of home furnishings and fabrics, Toray’s president announced Friday.

After purchasing the business from Springs Industries, Toray set up a new marketing company — Toray Ultrasuede (America), Inc. — which was capitalized at $5 million, or 675 million yen, in New York last month, said Katsuhiko Hirai, president of Toray.

Toray, which has invested $15 million in the acquisition, hopes to expand its business in North America and South America through the reorganization. Human-made suede, called “ultrasuede” in the United States, is a special fabric used for garments and automobile interiors.

Toray and its subsidiary in Italy had been supplying human-made suede to the U.S. market through Springs Industries, but sales channels will be consolidated under the new company, according to Hirai. The new company will begin operating in August.