Toray Textiles Into Mansfield

Toray Textiles Into Mansfield
Toray Textiles Into Mansfield

Case Study of

- What is Toray?

- Why Mansfield?

- How does it benefit local community?

- The multiplier effect.

- Factors involving the choice of a work site
Toray Textiles ? Key facts :

- Established in Japan in 1926.

- Owns over 60 branch plants ? Asia, North America, Europe, making
company name recognised worldwide.

- Plants include: Italian artificial suede manufacturer, French carbon
fibre manufacturer.

- Sales offices located in Milan and Frankfurt.

Why Britain?

- Close link with Marks & Spencer ? provides a good product outlet and
can supply new designs at short notice.

- Turnover expected to be over 80 million pounds from new plant in
Mansfield.

- Japan has become too expensive as a manufacturing base for a product
so technically unadvanced.

- E.C. rules state that, unless 60% of any product is made in E.C. by
E.C. registered employees, then the product is subject to import duty
in the form of money or commission, or by limiting the amount of the
product sold (tariffs/quotas).

- Productivity higher than in Japan and U.S.A.

- Automation higher than in Japan and U.S.A.

- Less training required.

- High unemployment rates.

- Longer working week.

- No minimum wage or legal paid holiday.

Why Mansfield?

- Mainline inter-city rail link to London and Birmingham making big
cities more accessible ? products can be sent for sale more easily.

- Accessible to the M1 and U.K motorway networks ? access to buyers
and channel ports ? easier imports and exports.

- High unemployment ? not only will vacancies be filled but there is
competition ? workers could accept lower wages.

- Nottingham is nearby ? worldwide reputation for textiles.

- High water table in area ? vast quantities required for bleaching
and dyeing.

- Unemployed miners well qualified in safety practices ? an area upon
which Toray places great importance.

- Potential to set up and expand onto a green field site ? lower
costs.

How does it benefit local community?

- Low unemployment.

- Higher prestige for area ? more publicity.

- Tourism ? created by publicity ? brings in money etc.

- Helps relieve pressures on council after large numbers of
redundancies from the flop in the mining trade.

How does it benefit the U.K.?

- Net benefit of 50 million pounds to U.K balance of trade.

- Has seen a revival in textile manufacturing.

- Has prevented the need to import fabric from abroad.

Multiplier effect:

- New employees have more money to spend, creating work in tertiary
employment i.e. services, shops, tourism, banking, housing and
education.

- If Toray is successful, other companies may be encouraged to locate
in the area.

Factors involving the choice of a work site:
============

- Accessablity to a good infrastructure.

- Opportunity to set up on a greenfield site. ? less cost and the
opportunity to expand.

- Level of unemployment ? competition for vacancies

- Prejudices for/against a particular area, for example the
North/South divide in certain areas

- Tradition of use of technology.

- Political situation ? a particularly shaky situation may cause
people to boycott i.e. South Africa in 1970?s and 80?s

Toray Textiles Into Mansfield 7.7 of 10 on the basis of 3812 Review.