With an eye on automotive composites, Toray buys Zoltek for $584 million

Published: September 26, 2013 11:01 pm ET
Updated: September 26, 2013 11:03 pm ET

Related to this story

Topics Materials, Mergers & Acquisitions, Aerospace, Automotive, Materials Suppliers

Toray Industries Inc. is making another acquisition in the growing market for lightweight carbon fiber composites.

Toray has offered to buy Zoltek Cos. Inc., a carbon fiber manufacturer based in St. Louis, for $16.75 per share in cash, or a total of $584 million, Zoltek announced Sept. 26.

Zsolt Rumy, chairman and CEO of publicly traded Zoltek, agreed to vote his 18 percent stake in the company in favor of the deal.

“Toray provides unique opportunities to drive the continued growth of our commercial carbon fibers business well into the future," Rumy said in a news release.

When the deal is finalized in late 2013 or early 2014, Zoltek will be a wholly-owned subsidiary of Toray and operate as a separate business unit.

Both Toray and Zoltek have been helping to push the automotive sector to use more carbon fiber composites, as a means of reducing vehicle weight and improving fuel economy.

Earlier this year, Toray bought a 20 percent stake in auto carbon fiber supplier Plasan Carbon Composites Inc. of Wixom, Mich.

Last year, Zoltek signed a deal with global auto parts supplier Magna International Inc. to speed the development of low-cost carbon fiber sheet molding compounds for the auto industry.

Zoltek is a smaller player in carbon fibers, with 2012 sales of $186.3 million. The company has been pursuing a strategy to manufacture carbon fibers into commercial applications at costs competitive with other materials.

Tokyo-based Toray has also been focused on expanding the use of carbon fiber-reinforced plastics beyond their traditional base in the aerospace sector. Toray has been establishing development centers globally to help speed the use of carbon fiber in the auto market.


Comments

With an eye on automotive composites, Toray buys Zoltek for $584 million

Published: September 26, 2013 11:01 pm ET
Updated: September 26, 2013 11:03 pm ET

Post Your Comments


Back to story


More stories

Image

Dow reaches agreement with Third Point

November 21, 2014 9:11 am ET

Dow Chemical Co. has reached an agreement with the investment firm that has been trying to force the company to sell off some assets.More

Image

Ineos making its UK shale play

November 21, 2014 9:29 am ET

Chemical giant Ineos Group AG is planning to be the biggest player in the United Kingdom's shale gas industry.    More

Image

High pressure RTM systems moving from Europe to Mexico

November 20, 2014 4:24 pm ET

Engel Holding GmbH's subsidiary in Mexico says it has sold the first high pressure resin transfer machine system (HP-RTM) in the Americas to a...    More

Image

Thomson Plastics opens N.C. plant

November 20, 2014 3:12 pm ET

Custom injection molder Thomson Plastics Inc. has opened a new manufacturing facility in Lexington, N.C.    More

Image

Coveris changes culture, eyes IPO

November 20, 2014 1:40 pm ET

CEO Gary Masse has a simple message, and some new math, for everyone at Coveris Holdings Corp. Get on board or get out of the way.    More

Market Reports

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events