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

Prices trending up for some recycled resins

July 24, 2014 1:27 pm ET

Plastics News is correcting prices for recycled grades of several commodity resins on this week's resin pricing chart.    More

Image

Chinese auto suppliers growing in US

July 24, 2014 4:17 pm ET

Two China-based automotive suppliers are expanding in the U.S., according to information released by the Michigan Economic Development Corp.    More

Meredian merging with Danimer Scientific

July 24, 2014 1:59 pm ET

Bioplastics maker Meredian Inc. is merging with its sister firm, Danimer Scientific LLC.    More

Image

US Bioplastics receives funding to bring Gatoresin to the market

July 24, 2014 1:44 pm ET

Materials maker U.S. Bioplastics is hoping its Gatoresin product will take a bite out of the bioplastics market, thanks to funding from a state...    More

Image

Injection molder, recycler Polyvulc USA puts itself up for sale

July 24, 2014 12:41 pm ET

Fred Farrell and Larry Lambiotte, founders of Polyvulc USA Inc. and its subsidiaries Polyvulc Tire Recycling Llc and Winnsboro Rubber Recycling LLC, a...    More

Market Reports

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

Plastics Recycling Market Review & Outlook 2014

This special report from Plastics News examines the North American plastics recycling industry and provides insight into indicators that impact market viability, including Resin pricing trends for virgin and recycled market material and historical Resin production trends for post- consumer and industrial waste.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

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

More Events