Put more fiber in your portfolio

Last night’s bad economic news out of Japan means this one goes on our watch list. As a Japanese company, Toray Industries (TRYIY.PK), moves with Japan’s stock market. But much of its business and most of its growth are from outside Japan. (For more on the bad economic news out of Japan see my post http://jubakpicks.com/2010/07/30/for-surprises-this-a-m-forget-us-gdp-and-look-to-japan/ )

Toray Industries was founded in 1926 as Japan’s first maker of synthetic textiles. Today the company is still weaving and knitting exotic textiles—including for two of the global growth stories of the next decade,

First, reverse osmosis membranes for water desalination. Global installed desalination capacity will grow at a compound annual growth rate of better than 9%, according to projections from Pike Research. Total desalination sales will approach $90 billion n 2010 through 2016, Pike Research forecasts. Although the desalination industry as a whole remains strikingly unconcentrated with the top five suppliers together controlling only 25% of the market, the market for reverse osmosis membranes is strikingly concentrated. The companies, Dow Chemical (DOW), Nitto Denko (NDEKY.PK), and Toray Industries control 65% of the market.

Second, carbon fiber in cars. Read more